Ladies and Gentlemen, good day and welcome to General Insurance Corporation of India Q1 FY 2026 Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Nikita from EY. Thank you and over to you Ms. Nikita. Thank you, [Hamsha]. Good morning to all the participants on the call and thanks for joining the Q1 FY 2026 Earnings Call For General Insurance Corporation of India. Please note that we have mailed out the press release and presentation to everyone and you can now see the results on our website and it has been uploaded on exchanges as well. In case you have not received the same, you can write to us and we'll be happy to send it over to you. Before we proceed with the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. It must be viewed in conjunction with the businesses as actual performance or achievement may differ significantly from what is expressed or implied by such forward-looking statements. To take us through the results for the quarter and answer our questions, we have with us the management of General Insurance Corporation of India represented by Mr. Ramaswamy, Chairman and Managing Director, and other top members of the management. We will be starting the call with a brief overview of the quarter gone by, which will then be followed by the Q&A session. With that said, I now hand over the call to Mr. Ramaswamy. Over to you. Good morning, I'm Mr. Ramaswamy and thank you all very much for joining today's call. I'll quickly provide an overview of our performance for this quarter and then we will start the Q& A. The past year has been characterized by persistent local uncertainty driven by inflationary pressures, geopolitical complexities, and escalating climate-related risks. These factors have contributed to heightened volatility across financial and insurance markets. Nevertheless, the Indian economy exhibited notable resilience, underpinned by robust domestic demand and sustained policy impetus. In spite of these challenges, GIC has delivered a robust performance. Our unwavering focus on underwriting discipline, portfolio optimization, and strategic alignment enabled us to adequately navigate market headwinds while preserving operational integrity. The performance of this quarter reaffirms the resilience of our business model and our steadfast adherence to core reinsurance tenets, rigorous risk management, prudent diversification, and discipline in underwriting. While catastrophic events continue to pose formidable challenges to the industry, we remain thoroughly prepared. Supported by comprehensive risk frameworks and actuarial rigor, we have deepened our understanding of market cycles and refined our risk appetite accordingly. Looking forward, we remain confident in our strategic direction. The clarity and discipline we have demonstrated position us well to confront emerging challenges and capitalize on future opportunities with resilience and conviction. We will now proceed with a detailed review of our financial performance for the quarter. The gross premium income of the company was INR 12,388.01 crore for the first quarter ended 30/06/2025 as compared to INR 12,405.68 crore for the previous quarter ended 30/06/2024. It needs to be noted that these two quarters are really not very comparable since IRDA has changed the accounting of long-term policies in October 2024 to one by N, which means that for long-term policies the premium would be apportioned over the number of years for which the policy is taken. Because of this, the premium for the current quarter is lower and overall we do see growth in this quarter. Incurred claims for the quarter is 90.42% for the quarter ended 30/06/2025. It is more or less the same as the previous quarter for the previous year, which is 89.77%. This is in spite of two large extraordinary losses which have hit our books for the current quarter. Jindal Poly Films, which is a fire loss where the 100% loss figures are INR 2,300 crore and GIC share is about INR 925 crore, which is fully provided in our books, and of course the unfortunate Air India aviation loss which happened in Ahmedabad. Both these losses are very adequately provided in our books. In spite of this, the underwriting loss reduced by 30% to INR 907.76 crore for the quarter ended 30/06/2025 as compared to INR 1,288.53 crore for the same quarter last year. Gross investment income has also increased by 18.37% to INR 3,228.51 crore as compared to INR 2,727.43 crore for the corresponding quarter last year. Profit before tax has increased by 61.04% to INR 2,243.54 crore as compared to INR 1,393.16 crore for the quarter ended 30/06/2024, and the profit after tax has increased by 70% to INR 1,752.22 crore as compared to INR 1,036.36 crore. I would also like to inform that we've started the practice of providing for catastrophic reserves on a quarterly basis and not annually as done in the previous year. If this were not done, the PBT and PAT figures would have been higher by INR 143.47 crore. The solvency ratio is very robust at 3.85 for the current quarter as compared to 3.36 as on 30/06/2024. The total assets have increased by 5.89% to INR 197,539.62 crore compared to INR 186,552.46 crore for the previous quarter. Net worth of the company has increased by 17.919% to INR 45,275.48 crore at around 30/06/2025 as against INR 38,635.23 crore for the previous quarter. Net worth of the company including the fair value change account has increased by 4.17% to INR 89,512.55 crore as against INR 85,956.02 crore. The combined ratio has reduced by 2.66% to 106.94% for the quarter ended 30/06/2025 as against 109.6% for the quarter ended 3Q24 and 108.8% for the entire year FY 2024, 2025. I would now like to throw open this for questions that you may have. Thank you. Thank you very much. We will now begin the question- and-a nswer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles to ask a question. The first question is from the line of Aditi Joshi from JP Morgan. Please go ahead. Yeah, thanks for taking my question. I have a couple of questions. Firstly, on the top end growth, the growth in the international looks to be quite impressive. Is it because of the changes in the credit rating that we have been seeing, or is it mainly on the account of rates hardening? Could you just provide some color on that, as in how much growth is from the new contract, how much is from the rate hardening, and on the domestic it was slightly lower than the international. Going forward, given in the portfolio such as fire insurance, the pricing is getting better, at least for the primary insurance. What is your outlook in the domestic business, including the assurance and motor insurance? This would be my first question. Yeah. This year, yes, you're spot on the top line. Growth on the international has grown because of our credit rating improvement which happened in October last year, which gave us a chance to look at really good businesses on the 1st January renewals and we managed to rise a substantial amount of increase there. To quickly address your question, it's not because of great harming, it is because of new businesses that we have written on the 1st January renewals which is now coming into our books for this year. In fact, I would say that for the 1st of January, the market was pretty soft and we did see rates softening. Like I said, because of our credit rating upgrade we got to see some really good pieces of business, both new as well as those that we had written earlier which we had lost due to our credit rating downgrade. We managed to get that back. These are all basically new business in our books that you are seeing the increase. Secondly, on the domestic side, yes, again you're spot on in saying that the property premium today looks a little subdued simply because quarter- on- quarter when you compare, you are comparing two different quarters. The last quarter the premium of long-term policies were fully accounted for. Today we apportion them across the different years for which the policy is taken. To that extent the property premium would be subdued. Again, on the domestic front we have been trying very hard to ensure that the primary insurance rates stay and it is more or less held on till now. We are very confident that that will continue to happen during the year. We are in touch with and SSD rates on the primary side is in a position where it is viable for the market to continue writing at those rates and it gives a certain amount of positiveness to the entire portfolio. Yes, going forward 500 would go up and I think it would be slightly higher than what it was for the entire year last year. On the domestic side we have grown a bit o n the health, like you would have seen last year, our growth on health was substantial and it was on the retail health side. This year when we did analysis how it is progressing and how it is performing, some of the treaties we felt was not doing the way we wanted it to. There is obviously medical inflation that is coming up and some of the losses have really crept up during the year. We have not renewed a couple of treaties that we wrote last year. To that extent, health will be slightly up. Overall, we are also writing in new classes of business like surety, cyber, and trade credit. That gives us diversification in our books as well as provides growth. Going forward, we would look at this year, maybe for the entire year, we expect the growth to be between 9% and 10% compared to last year. Is 9% and 10% in domestic or overall? Overall. Typically, international would grow about 17% to 20% year on year this year, and the metric would be about 6.5% or 7%. Okay, thank you so much for that. I can also squeeze in one more. Your expense ratio was slightly better. I mean it was a lot better in this quarter as compared to the same quarter last year. What would be the reason behind that? Two things. One, on the salaries, on the employee compensation, what happens is we do provide for the pensions and gratuity for employees based on actuarial calculation. There has been a decent debt for the current quarter compared to last year quarters. Plus, I think on the IT side, the spending that we have done last quarter compared to this quarter, it was more last quarter. To that extent, we have got this. What I'm trying to understand is the expense ratio outlook for the rest of the year and for the coming quarters. I guess IT spending can be up and down, maybe quarter- on- quarter, but it looks like this salary, employee salary compensation can continue [cross talk]. Yes, it is more or less carry at this rate because whatever changes that is looked at is kind of already provided for it. Right. Honestly, Aditi, the point is you look at our expense ratio, it's less than 1%. Honestly, that is going to move the needle. It's not going to go from 1% to 5%. It will only change between nearly 0.9%- 1.1%. Honestly, it's not something that is going to move the needle as far as the combined ratios. Thank you so much. Thank you. Thank you. Ladies and gentlemen, in order to ask the question, please press and run n ow. Th e next question is from the line of [Shubham,] an individual investor. Please go ahead. Hello. Congratulations on the fantastic set of numbers by a couple of. One was on the expense ratio. You also see the commission going down from 19% to 20% to 16%. What has led to this, your commission? Would this normalize back to 19%, 20% for the entire year? This is more of a one off, I would say, for this quarter. Basically, the initial commissions that we charge and then depending on the profitability of the portfolio, the commissions will go up or down. That's how typically it works. I would say this is g oing forward, we will see that it kind of settles down around 18%, 19% for the year. Okay. Because almost, I think INR 300 crore is like the savings, some commission for this program? Yeah, yeah. That's what I said. Basically, what would happen is as the quarters advance, as we come closer to the end of the year, depending on the profitability of the treaties, the commission would change. Three q uarters and then typically the commissions, we would see how it settled. Got it. Second question was in general, like, what's the strategy for, you know, booking the investment income? Because ultimately that is the one which is driving our bottom line. Do we have any specific strategies at every quarter of every year, this. Is how much we have to keep looking to bring a certain level of that. No, [Shubham,] it's not like that. Now let us understand our investment book. You know, over the 100%, about 74%, 75% is debt. Right. There is no question of we deciding when to book and how to book. This typically means that for the 75% of our book, the interest would come in the normal time. It gets booked each quarter. It also means that to a great extent, our book is held to maturity. We have kind of ensured that the higher rates at which we purchase these, some of these debts continues. We end up getting a good amount of interest on that. What you are talking about in terms of is about profit on investment of, I'm sorry, profit on sale of investment equity. Let me be very honest. We don't really try to sell investment just to prop up our bottom line. That is not what we do. When we do sell, it is just because we feel that a particular sector has kind of run up well and reached the end of where it should be, and then we decide to sell. If a stock or a sector has become suddenly overheated, we would then sell it and maybe wait and purchase it at a later time. These are strategies for which the investment department, there are analysts, there are officers who look at these things in detail and present their recommendation as to what we do. Honestly, we don't really sell equity just to show profit on our books. That's not something that we do. We also need to understand that maybe two years down the line, IFRS is going to come in, so we need to be ready for that. For that, whatever strategy we need to do, we will do. At this stage, I think the investment book is in a very comfortable space. Like I said, a major part of that is debt, where the interest keeps coming irrespective of how the stock market functions. I have said this earlier also that whatever risk appetite we have, whatever risk we want to take, we take it in our business. We don't take it in our investment. Our investment is normally very, very safe. They don't play around with that. I think it's in a good space now. Got it. Thanks for the clarification. Finally, on our net worth, the way we account it in our books is at the book value, that is, excluding your fair value changes. Is this in line with what, let's say, the other private insurers, could be general or life insurers, follow, or is this something which we are following? This is how typically every insurer would be asked to follow by IRDA. IRDA says that everything should be accounted for in book value. We also show it in fair value because when our international rating agencies look at us, they look at us from a market value perspective, which is why we provide you with both flavors. Of course, going forward, as I said again, once IFRS comes in, everything would be on market value. At that time, obviously, everything is. Got it. The ROE which we are showing, let's say now, it's in the range of 18%-20% because your net worth is, let's say, on the lower side because of the execution of fair value changes. Once the IFRS now comes in, would your ROE continue to be in that level or it would automatically drop because of the higher net worth?, We will still need to find that. We are still working on it. IFRS is something that, you know, our team is working on. Hopefully we will not even wait for the dates that IRDA has given for implementation. We'll actually start doing that much earlier and we will be in a position to hopefully give you both the figures, the IGAP as well as the India's figures maybe from the third quarter of this year. You as an investor or as an analyst may actually get to see how the books would look once IFRS comes into play. We're still working on it. I may not be able to give you a 100% answer now as to, you know, whether the ROE will change because honestly it's not dependent only on the investment fair value. It depends also on how the overall underwriting looks. There will be multiple factors there. Got it. No. Thanks a lot for this presentation. Fantastic. Thank you. Thank you. Before we take the next question, we would like to remind the participants to press star and one to ask a question. The next question is from the line of Rikita Dua. Please go ahead. Thank you for the opportunity. I heard you on the ISRS thing that we are going to share from third quarter, not sharing any numbers, but generally could you maybe highlight some of the changes that are we going to see when we move to IFRS with some of the other general insurance. Obviously we have some understanding of at least the broad changes that are expected as to, you know, once we move to IFRS. Could you just give us a broad understanding then without any numbers. Essentially, it will affect us both in terms of the business performance, which is our core activity, which is reinsurance, as well as on the investment side. On the core business side, we do believe that it will be beneficial for us. IFRS will be beneficial. The way the business will be shown will definitely be different. We've seen how others have done it in markets where we are present, and once IFRS comes in, the results actually look better on the underwriting side. We believe the same should happen for us. Like I said, we are still in the process of working that out, understanding our book, and putting in the data. On the investment side, what would happen is, like I said, it will be taken on a market value basis. It would mean that any dip in the market would actually get reflected negatively for us in case we are showing depreciation in our values. Today, that doesn't happen because, to an extent, what happens is only the book value is seen. Any change in the fair value doesn't really come and hit our books currently. To that extent, we will need to manage our investment in a different way. I guess we will start, I think the investment section will have to start working like a mutual fund, managing the NAVs on a day-to-day basis, ensuring that the churn happens in a way that we are able to kind of roll over the negativity of the market. That is again something that we are working on. There are strategies in place to manage that. The way I see it is, in case IFRS comes in, it should definitely be beneficial to us in the long run. Thank you. Sure. Thank you. Thank you. The next question is from the line of [Karthik NK,] an individual investor. Please go ahead. Yeah. Hi to everyone. Good morning and thanks for the opportunity. I have a few questions regarding a foreign portfolio. We have sort of stopped writing, you know, foreign respect to Motor and Marine. We are still incurring a lot there, right? How are you going to look at it going forward in this financial year? I mean, I wouldn't say we have stopped completely Motor and Marine, but we are careful about the kind of business that we write. We do continue to write Motor and Marine. Marine is a worldwide book anyway, and Motor also there are specific markets from where we write business. Having said that, there was a particular contract in the U.S. which was for Marine and Motor which we had stopped in 2021. The runoff of that continues to come in and even though it is very adequately. Ladies and gentlemen, we seem to have lost the connection with the management. Please stay connected while we rejoin the management. Ladies and gentlemen, we have the management back online. Please go ahead, sir. Yeah, [Karthikan,] sorry about that. What I was saying is Marine and Motor we do continue to write since these are books that you know we get to see some different markets. A particular contract from the U.S. which we have stopped in 2021, the runoff continues to come in terms of earlier both the premium and claims used to come. Now the premium is stopped, now it's only the claims, but then these are adequately provided in our books. What you get to see is the payments that we are doing for these, for these classes. Okay. They're still continuing. Right. Runoff and the clients are coming still. How long do you think that that's going to happen? How long? I mean any. Any timeline or it is not possible to provide any timeline. I guess Marine is kind of done now, and if you see, it reflects in the loss ratios as well. Motor is where we would expect. I mean, typically motor third- party is a long tailed class. We would possibly expect this to go on for another two to three years. It's actually come down. The actual amounts, if you see, are really come down. Over the next two to three y ears we'll still see some claims coming in from motor. Yes. Another question is that the major impact with aviation, but there is a line item which says other miscellaneous where we have where the underwriting is almost INR 400 crore. Is that also related to aviation or something else? There will be, yeah. No, no, he's asking whether that is related to the aviation route. To an extent it would be. Let me also clarify. When we talk about the aviation loss per se, there are multiple classes that are involved in this loss. I'm talking of the Air India, unfortunate Air India crash that happened in Ahmedabad. There are multiple classes which get involved because, you know, people would, this is an international flight, so people would have taken travel policies that will trigger. There'll be lots of state there PA policies that people would have taken that would trigger, life insurance policies that are taken back to. There will be some losses coming out of marine. Over and above all this would be the police policy which Air India has taken, through which, you know, the hull loss will be paid, which is almost $125 million, 100%. There will be liability losses for the passengers who lost their lives. Plus, since unfortunately the plane crashed in a building where there were doctors, obviously the third- party liability will also be high. There are multiple areas from where losses would come for this particular loss that we are talking about collectively put. What is the quantum of the loss? I mean, again, the market is coming to terms. There are different views about it. There are people who are saying it could be $200- $250 million. We believe it could be closer to $400- $450 million, you know, because again, like I said, there are multiple classes getting involved. The liability could be higher than what people are thinking because even though the Montreal Convention specifies what should be paid, we could have a situation where people might get higher payouts than that. The third- party loss should work out to be higher because these are all professionals who have lost their lives. Obviously, to that extent the award could be higher. The market is still coming to terms with it. Maybe, you know, going forward we will reach a landing on the actual figures. With regards to OBD3 business, what would be the combined ratio there for a, I mean, over the years, I mean what, what it has been. I mean like how it has progressed from currently. What is the current issue in the obligatory? It will be more or less reflecting the combined of our domestic business. If you look at our domestic business, it currently is at around 104% the last couple of years. It's kind of hovering around back seater. Obligatory would also be around that because even though the market today, the insurance market today is at a combined of maybe 118% or something, I think as a company we have managed to do better than the market, which reflects in our overall domestic book. The same would be true for obligatory as well. Okay. If life is an obligatory or major part of obligatory or non-obligatory Life, there is no obligatory, it's only for non-life. Life is purely the business that we write voluntarily. There's no obligatory this year. The providers we are seeing now losses continuously for several quarters, the underwriting part. It's more about the company ramping up its reserves. What happens is life is a long-tailed policy, long-tailed class. Normally, policies are taken out in the range of 25, 30 years. For some of the treaties that we have written in the past years, maybe 10, 12 years back, if we see that the performance is not as we wanted it to be, then we would provide reserves to ensure that there is no shock coming in the later years. That is what we have done. Typically, after Covid, we did expect some kind of stability to happen in the portfolio, which it's not seen to be there. The losses seem to be coming more than what we expected. That is where we have kind of ensured that our provisioning is in line with the losses that we see. This is something that we'll continue to do for a long-tail class like life, where we'll continue to monitor the claims that are coming in vis-à-vis provisioning we have made for the same, and depending on how they move, the provisioning will change. Okay. We have not seen much of the competition, right. Whatever competition would come from, like, and you know, the other which we don't have any legal presence in India going forward. There are no new companies created, the reinsurance part. How are we planning to, you know, tackle that with the competition, you know, what kind of strategy is going to follow. We have little entities coming in. I will not agree with you there. We have not seen competition in this market. I think we have seen all the competition that I wanted to see presence in this market. After coming years, you know, they have competed with us. We have been seeing price, price softness happening due to higher capacity being available. There are enough number of almost 300 cross-border reinsurers who are working in this market. I don't see a situation where we have worked in an environment where there has been no competition. I think competition has been there and honestly, as a company, we have welcomed that simply because getting more reinsurance capacity in this market means that the insurance market will develop. There is a lot of scope for, you know, insurance growth to happen. The penetration levels are at 1% or maybe less than that for non-life. Obviously, it needs to go up. The government is pushing for that, regulator is pushing for that, insurance for all by 2047. I think seeing how companies are in this market, the insurance companies, the fact that majority of them are privately owned means that as and when they grow, they will look to reinsurance for supporting their growth. We welcome more and more people to get into the reinsurance market. It will also help us to write the kind of business that we want to write. Because the kind of relationship we have with all these insurance companies are relationships that go back very many years, they know what, you know, kind of capacities we can save, what kind of expertise we provide, and what kind of support we provide in this market. We don't, we don't, we don't mind competition. As long as people understand what they are writing and they are able to put in that kind of capacities, we're more than happy to have them. Having said, new companies will take some time to settle down because insurance is a, either is a game of deep pockets. You need a lot of capacity, you need to have a lot of staying power, and if they have that, more than happy to welcome competition in this market. What kind of strategy are you planning for the foreign portfolio? You said that between ranges 15%- 20%. Is that going to be, can we see that going for the next two, three years? Yes, yes, that's how we are planning it. International will grow about 17 to 20% year on year and domestic would grow about 7 to 8% where we have factored in the fact that there will be more competition in the domestic market, number one. Number two, on the international side, the confidence comes from the fact that we used to write a lot of business in the past which we lost. Some of the good businesses we lost due to the great risk having bottom basis. Having maintained our relationships with all these companies, we are confident that we will get back those businesses that we lost. We already started, we are already in the market. We've already got some part of the shares for all the businesses that we lost. It's a question of ramping that up going forward. Also, we are getting to see some really good international businesses which have come up in the last few years. Writing that, the confidence comes from that l ike I said earlier, we've also provided for the factor, taken on board the fact that there will be competition in the domestic market. If the market grows the way it is expected to grow, we don't expect any diminution in our participation in this market. The share might come down, but then the overall market will anyway go up, so our business, our capacities in the market will continue. This is why we are very confident that in the next medium term we'll definitely be able to write the business that we are looking for. Again, the biggest challenge and the biggest driver for us is that the business that we write should be profitable. We are not writing business just for increasing our top line. We are not in that game. We want to ensure that every piece of business that we write brings profitability to us, increases our margin, and overall answers in improving our net worth. One last question I have is, the combined has come down the first quarter for the foreign portfolio. What will it be like for this f inancial year going forward? The combined for the foreign portfolio, We are expecting that the combined yield, it's not, I mean if you're asking whether this is a one off, it's not. This is something that we expect that it will continue going forward for this year. The combined for the foreign for this year, we honestly expect it to be closer to where it is now. Maybe it will improve a little more than you know, what it is currently. I think if you see it overall, we are looking at a combined of around, you know, 107, 106.8, 107 for this year in which overall the domestic curve will continue to be at around 104, 105 and foreign will come much better than what it was last year. I think it will come closer to 110% of my feelings. Okay. Thank you. That's all I have. Thank you. Thanks a lot. Thank you. Participants who wish to ask the question, please press star and one n ow. T he next question is on the line of Anant Mundra from Mytemple Capital. Please go ahead. Hello. Thank you for the opportunity, sir. I just wanted to understand the investment book better. I just wanted to get a sense, like what is the restriction? Are there any regulatory restrictions on us to invest in, say, equity? What is fixed income? Can we just highlight how much of our policyholders' book can we invest in fixed instruments, equity, and how much of that can be analyzed for pension equity? Okay. I can give you something briefly. If you want more details, I'll get my CAO to talk on this. The point is there are no restrictions. Yes, there are some restrictions which IRDA put in, but they don't say that, you know, you should put only so much into equity or anything or we should not put it into equity. I think this discipline is something that we have set upon ourselves because we are also rated by international credit rating agencies and they want to ensure that investment book is very, very safe, very, very liquid and doesn't throw up shocks. Like I said, we try to keep our investment book very safe. Having said that, you asked whether, you know, policy for policyholders, shareholders of one don't do that. Your entire fund is taken together and within that we decide how we have it in debt. Like you said, 74% currently is in debt. About 13%- 18% is equity and typically about 8% is money market. Money market is more FDs and liquid mutual funds simply because we need the money to pay claims as and when it comes. This is very simple, we keep it very simple. The idea is to maintain the equity around the same stage because you know that gives us the right kind of investment income that we want every quarter in our books. Otherwise, I mean, there are certain restrictions which IRDA, you know, you must have certain percentage in housing, certain percentage in infrastructure, something in government bonds and things like that. Those we are very clearly following, there's no problem. Currently, what is the run rate of our fixed income that comes in quarterly? If I exclude the capital gain, basically how much is the [audio distortion]. It's not in the rate of interest, is it? No, no. The quarterly run rate of the investment income that we are receiving right now, that's about INR 30,000 crore quarterly fixed kind of income that we will surely get whether we book any equity gains or not. Something of that. Yeah, yeah. Let me quickly come. We show INR 3,230.264 crore this quarter out of which INR 1,074 crore is profit on sale of investment. Interest and dividend together is about INR 18,008.50 crores. We do have branches and operations abroad. We keep that money outside in international fund; that bank interest is about INR 167 crores. There is also some businesses who keep our premium for some time, so there is interest on reserve deposits of about INR 131 crore. To come back to your point, maybe interest and student. It is something that comes on a regular basis. For us that's about INR 1,850 crores. Profit on sale of investment is about INR 1,074 for this quarter and this is kind of exciting. Got it. Got it. And, sir, just one more question. Sorry to interrupt, sir, but I may request you to rejoin the question queue for follow-up questions. Thank you. Thank you. The next question is on the line of Shobhit Sharma from HDFC Security. Please go ahead. Yeah, thank you for the opportunity. Sorry I joined a bit late. Sir, my first question is on the growth in the motor segment. On the direct side, if you look at industries, it has not grown that much. Some of the PSU players have been very aggressive on that side. Was this a one-off quarter for you in the motor side? Secondly, how has been our experience in the revision in the pricing, primarily on the property segment, wherein we have seen last year there was a steep decline in the rate? I have another follow-up question on the lobby's loss ratio, specifically on the motor and property segment. If you can break that in two. Another thing which I wanted to ask you is for the quarter, our net commission ratio has reduced considerably. Have we rationalized the commission rates we have offered to the insurers? Can you help us understand what has led to that? Lastly, on one small thing, data keeping on the capital gain you mentioned for the quarter, this quarter you have booked INR 1,074 crore, INR 1,174 crore. Can you give us the same number for last year, same quarter? What was the total capital gain realized in FY 2025? Yeah. Thank you. Okay, so let me try and take this point by point. First, Motor, you asked where is the growth coming from? Yes, there hasn't been much of a growth on the direct side, but we've also been writing some new treaties on motor where we have been supporting some of our partners. That is where our growth is coming from. Earlier, motor used to be almost predominantly obligatory, which is part of that used to be obligatory, but now there are a lot more treaties that we write with some of the companies on motor. That is where our growth is coming from. Secondly, you asked about revision in pricing on property. Yes, that is something that we are very closely monitoring, and we try to ensure and get people on the same page in terms of pricing to ensure that there is liability in the property. On the direct side, you ask how does that affect us? Honestly, property is majorly proportional capacity that we provide in the market. If the pricing on the direct side improves and the premium increases, we obviously get the benefit of it. Yes, people would be looking to get the benefit of that. It has not happened, or rather you would not see it in the first quarter comparison with the first quarter of the previous cost. That said, there is a change in the way long-term policies are accounted for. Earlier, it used to be booked in the same quarter. Now it is apportioned for the different years for which it is bought. To that extent, it will actually look flat, even slightly lower. Going forward, by the end of the year, you will see that property premium are higher than what it was last year. You also wanted to know about the commission. Yes, the commission looks low at this stage because typically what would happen is when treaties are signed, the commissions are started at a certain level and then depending on the profitability of the portfolio, the commissions would go up or down. We expect the portfolio to be profitable this year. Like I said, the pricing has gone up. Hopefully, catastrophic losses will be comparatively lower than previous years because the rains have been good. We've not heard of headline-making floods happening in this part of the country. We've also not heard anything on the international side, but we are monitoring that. Depending on how the portfolio performs, you would expect commissions to in case it works better. Our own feel is that, you know, as the year goes through and we reach towards the end of the year, the commissions would be more or less at the same level as last year. You also asked about the capital gains, INR 1,074 crore that we booked this year. For 2026, 2024 it was INR 790 crore and for the whole year of 2021, 2025 it was INR 4,108 crore. I mean, going by what we have booked, we can expect it to be around the same level or even slightly higher for the entire year. Can you help us understand the LOV wise loss ratios? There is significant improvement in the loss ratio despite the two large losses which we have accounted for this quarter. Was this driven by the motor health or PI segment? Let me quickly have a look. Some of the improvements that I see compared to previous year, basically water fire is more or less the same. I think the improvement has come from motor. No, not really. It's more from agri, maybe a bit of health. These are the ones that have contributed to the improvement. Of course, engineering is comparatively a smaller part, but that has shown profitability. These are the three main classes. Overall, motor looks good now compared to earlier years. Property also is massive because if I see the overall combined ratio for fire, it is at around 106, 107. Health has come down to 111, but honestly cargo has come down. It was a class which, you know, internationally we are, that has come down to 104, earlier it was at 144. This will be a one-off. I think overall each of the classes have performed better. The idea would be to bring it, you know, to better it going forward. It will all, of course, depend on how the catastrophes work out in the next two quarters. Last question on the retail, retail insurance segment, primarily the motor retail health. We have seen insurance companies retaining most of the risk on their net. Do you believe that there is a pattern for these insurance companies to cede that business to the reinsurers? Just your views on that, sir? We are seeing them do it. Like I said, the growth that happened in motor, which is your question, that in the primary market there was no growth, but where did we grow? That growth is basically in retail motor, so some of the treaties that we have written, where it used to be earlier kept by the insurance companies, now they have ceded it to us on the retail side. You are right in saying that individual policies are small tickets so the companies have the capacity to retain. As they start writing more and more they will need to put in more capital. If you see this market barring for maybe four or five companies who are listed in the market, the rest are privately owned. Obviously there will be a problem in getting the kind of capital that is required. Normally in that kind of a situation, it is the reinsurers who will be putting their capacity and driving up the capacity in the market. That is what we see happening and going forward. Also to your question, whether we see this happening, I think once RBC comes into play, what we would typically see is the capital would come down, the volume ratios would come down for the market and rather than quickly looking to get capital in, they might look for reinsurance capacity. That is one reason why we have kept our solvency at a higher level and not really solidifying business at this stage. We would rather wait and drive profitable business which would come to our side when RBC kicks in. Okay, sir, thanks. Thank you, sir. This answers my question. Thank you and all the best. Thank you. Thank you. Thank you. The next question is on the line of Ritika Dua from Bandhan AMC. Please go ahead. My apologies, if you could just reiterate the guidance you gave and combined ratio for the overseas business, and also if you could just break that down, because if I heard the number correctly, that level was a meaningful improvement that you're expecting. Is this meaningful improvement largely a function of maybe, you know, we have already provisioned for the businesses well written and we don't expect any, or how does that really improve? If you could help understand. That's the first question. Okay, let me just give you a feel on this. For the current year, last year we ended with a combined ratio of 108.8%. Typically, the foreign was at 126% and domestic was at 100%. This year we are expecting that to come down by at least a percent, maybe slightly more. The combined should be closer to 107.5% is what we believe it will be. A major part of that improvement would come from international because I think domestic, if you see, we are currently at 104.5% or something there. I think that's a good position to be in. I don't think in the short- term it will do better than the domestic simply because you see the overall market, it is running at a combined of 116%- 118% and they are already doing much better than the insurance market. Our improvement will happen on the foreign side. What we believe is, from 126% we should ideally be coming to around 118%, 116% is what we would be looking at for this year. We are already at 118 for the quarter. You said that we could be at 116 for the year, roughly. Exactly, exactly. Okay, two quarters. I mean the coming two quarters, which is the July, August, September and the October, November, December, are internationally the two quarters where you get catastrophic losses. We need to really monitor that and see how that works. Fortunately, we've still not received any advisories of any major catastrophic event happening in any of the markets. We are sanguine about getting a much better combined ratio. I guess as the quarters move on you will get a much clearer picture on the combined. One second question with a little more accounting. For all the unlisted, I mean investments in the unlisted stage that we have, how do we account for the same, especially if they are obviously marked up on a fair value basis? What is our, when does the markup really happen, and what is the basis for the thing on physical? Honestly, the number of unlisted companies are very, very less in our books. Having said that, the unlisted companies would be accounted for on book value basis only at this stage. We don't really mark it up unless it gets listed. Okay. Thank you. Thank you. Thank you. Ladies and gentlemen, this would be our last question for today. I would now like to hand the conference over to the management for closing comments. Thank you everyone for your questions, your comments, your suggestions. They mean a lot to us, and honestly, over the years they have opened our eyes to looking at our business in different ways. I'm hoping that the consistency of our performance this quarter would give you the confidence that it reflects our disciplined execution, a focused strategic approach, and prudent risk management. These efforts have positioned us to pursue [audio distortion]. Ladies and gentlemen, we seem to have lost the connection with the management. Please stay connected while we rejoin the management. I'm sorry about that. Hopefully, like I said, our efforts have positioned us to pursue opportunities that align with our risk appetite and support our long-term vision for sustainable value creation. I hope that gives you the confidence about how this company will perform going forward. On a very personal front, I'll be laying down office at the end of September, and this is most probably the last time that I'll be interacting with all of you on this platform. I would like to take this opportunity to thank all of you for the support that you have given to GIC, the interactions that we have had, and the interest that you have shown in us. I've learned a lot from these interactions and have taken heart from the positive vibes and comments that have come from you. I hope our performances have given you the confidence in our business and the strength that our balance sheet has, and that you will continue to support this company and my successor in the years to come. I wish you all the very best in your future endeavors. Thank you. Once again, Thank you on behalf of General Insurance Corporation of India. That concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.