Ladies and gentlemen, good day and welcome to Go Digit General Insurance Limited Q1 FY25 earnings conference call, hosted by ICICI Securities. As a reminder, all participants 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 the conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. And now, hand the conference over to Mr. Ruchit Kapadia. Thank you, and over to you, sir. Thank you. Good evening, ladies and gentlemen. ICICI Securities is delighted to welcome you to the Q1 FY25 results conference call of Go Digit General Insurance Limited. Without further ado, I would like to hand over the call to their chairman, Mr. Kamesh Goyal, for his initial remarks, after which there will be a question-and-answer session. Thank you, and over to you, sir. Good evening, and thanks for organizing the call, Ruchit. I'm here joined by our CEO, Jasleen, our CFO, Ravi, our head of financial reporting, Abhishek, and Piyush, who is our financial analyst and also helps with the investment decisions. Before I start, I would request everyone to refer to slide 2 of the deck which we had published yesterday about the disclaimer. Having said that, we'll quickly go to slide 3. I'll keep referencing page numbers so that everyone can also refer to the relevant page. I think as we have been speaking about since our IPO time, indeed, we believe in giving as good a customer experience as possible, and customers also include partners. We obviously want to empower our distribution partners more and more in terms of service, in terms of policy servicing claims, and things like that. We also believe in automated and predictive writing models, and this is something which keeps on evolving. From the day we started, we have been focusing on big time on the platform, and this is also an area which we are continuously investing in. This ultimately is driven by a culture of continuous improvement, driven by a stable and a strong management team. Moving on to page four, the gross written premium for the first quarter of this year is INR 2,650 crores. This is collected through more than 30 lakh policies which we sold, and this is a growth of about 22.2% compared to Q1 of 2024. The market share, and if you look at the definition of the market share here, it's about 3.6 in this quarter, and motor is about 6%. We have almost all kinds of products in the market now, about 5.34 customers and more than 66,000 distributors. We have now settled more than 21 lakh claims. On an average, we are processing on a working day about 3,500-4,000 claims a day. Assets under management in this quarter have grown to INR 17,773 crore. We'll come to that as to how this happened in the latest slide. Manual policy spend continues to be low. As I just said, we try and believe in giving a good customer experience. So while our motor and non-motor claims NPS is mentioned here, with more than 2.5 lakh reviews given by the customers on social media, we are rated 4.7 out of 5 on Google, and 4.9 out of 5 on Facebook. Moving on to the next slide, which is slide 5, this basically gives you the trajectory of the financial numbers on the KPIs since financial year 2021-2022. And obviously, the last two columns are only quarter one against quarter two. The net earned premium for the company has also increased from INR 1,475 crores to INR 1,824 crores. Net retention in the quarter is more or less stable at 76%. There is a 0.8% improvement in the combined ratio. The corporate OpEx increased from INR 58 crores to INR 101 crores. I think this is the first time in a quarter has seen a three-digit profit. The ROE, which again for both quarters is not annualized, increased from 2.5 to 3.3. What obviously one needs to keep in mind is that the net worth of the company has grown substantially, almost INR 1,300 crores, from INR 2,384 crores to INR 3,698 crores in this quarter, and this is due to the primary use of capital which was given in the month of May during the IPO stage. The solvency margin of the company has now increased to 2.17 against the required regulatory requirement of 1.5. As you can see, the solvency ratio of the company is actually the highest it has been in the last more than 3 years. The return on average equity for the quarter 2025 is obviously on the higher base, the average of starting as of 1st of April and also ending of 15th of June. Moving quickly to slide 6, this is more about the premium growth as to how the premium is growing. If you see the slide on the left side or the portion of the left side, you can see that in Motor Own Damage, we have grown this year. These are the numbers for the previous years and also the GWP mix. If I move to the slide on the portion on the right-hand side where we are comparing the numbers only for the first quarter, 2024 and 2025, you can actually see that our growth in GWP on OD was about 27% against market 15%. Growth in TP in this quarter was -2% compared to 10% for the industry. In health, travel, and PA, growth rate was 52% against industry growth rate of 17%. And in this, you can actually see a note below. In group health insurance or group medical MSME, there is employee relationship, which is essentially the companies which will take health insurance for their own employees. This business has actually grown by 2%. Though this data is not published separately, our sense is that this business would have also grown by about 12%-15% for the industry. So this is one segment we have grown by -2%, but overall, essentially driven by personal accident and business. The growth has been 52% against 17%. Fire insurance, we grew by 16%. Sorry, this is the next. We grew by about 11% compared to the growth of the industry of 6%. And others, we grew by 71% compared to the industry's growth of 13%. Overall, 22% compared to industry's growth of 13%. I think if you think in terms of mix, etc., one real change where motor TP has gone down in the previous quarter, 36% to about 29% in this quarter, while health, travel, and PA has grown from 22% to 27%. And as I said, this is really driven health, travel, and PA. This is despite us degrowing in the business of employer-employee group health business. Moving to the next slide, this again gives you the whole trajectory of the combined ratio movement from FY22 to now. And as you can see, that claims ratio has moved up by about 2.4%, while the expense ratio went down by almost 3.2%, giving us net savings of 0.8%. As I've been seeing in the earlier call also, as I said, we would look at loss ratios more over a period of one year, and a 3% movement in a quarter can always happen. For example, I think if you look at the month of May, normally one sees lesser claims in the month of May on the health side. But this year, the number of claims for the industry, we believe, and Go Digit has been on the higher side. While May, June, due to school holidays, you still normally see a higher number of damage claims. But this year, we didn't really see the trend, whether it was due to very high temperatures in June or otherwise. It's very difficult to correlate to. But I think it's important, as I said, to look at loss ratios over a period of time. Expense ratios are also driven by the mix because commissions are different for, say, corporate business, group health, crops, compared to what the expense commissions are. Overall, on the profit after tax, I think last year, as you know, the Ind AS accounting had achieved a break-even in year 2022-23. Last year, we had a profit of INR 180 crore, and this year, profit of INR 109 crore, which means the INR 1 crore against 58 crore in the same quarter in the previous year. Moving to slide 9. Here, I think I wanted to say that if you look at our overall components year 2024, we actually had a total increase of roughly about INR 3,000 crore, INR 3,050 crore. Out of it, INR 350 crore had come through PS2 capital, which was raised in December, partly, and some in March 2024. This year, there is a growth of roughly again about INR 2,000 crore from March 31st, 2024 to June 2024. Out of this INR 2,000 crore, INR 1,065 crore is the net proceeds of the IPO, and the balance of about INR 944 crore is coming in from the business. Looking on the sidebars on the right-hand side on the same slide 8, if you look at, you can notice that every last three financial years, our investment income has been going up. Our portfolio is primarily fixed income. In the first quarter 2025, we actually booked a loss of INR 19.5 crore. During COVID time, we had bought some government securities, which were becoming due on maturing the next one year. We decided actually to sell those securities and invest in corporate bonds with 3- to 5-year duration. The economic logic of that is this loss, which we booked on this, will actually get more than offset in the next 12 months. Because all these securities are maturing in the next 1 year, and now we have moved to bonds of INR 3 crore-INR 5 crore, this actually will give us the additional alpha. If we remove this, then our yield would have been 1.8%. So that was the small, I would say, caveat I just wanted to put on the investment loss or the capital loss which we had. Moving to slide 9, here I think, again, moving to slide 9, I think this speaks essentially about the asset allocation. And you can actually see that in equity, our asset allocation has moved from 1.6% to 2.5% in quarter 1. This additional investment, I would say, typically happened most of it on 4th of June when the market had died. As I had been mentioned earlier in our earlier analysis, with this sort of a solvency margin, I think the company has enough room to move asset allocation towards non-fixed income also. Other than that, I would say things are stable. Our duration is also similar of 5.1-5.2 years range. The sector-wise exposure is also mentioned on the right-hand side. All this exposure sector-wise is within the guidelines of the investment regulations of the IRDA. Coming to the next slide, slide 10, where we are looking at the loss ratios. Here again, as I said, we look at it over a period of time. You can actually see loss ratios in my view are more or less similar to the trend we have seen over a period of time. The only thing in loss ratios in fire or engineering or some of that is in the first quarter, the earned premium is a bit lesser. So even a small claim or a multiple claim can move the numbers. So as I said, loss ratios are broadly similar to the trend what we have seen in the last nine quarters or so. I would again repeat that we should look at loss ratios over a period of a year to see what percentage points movement up and down can happen in the business. The last slide is on technology. And here again, I would say the website is more or less the same what was mentioned last time. But in terms of API integration, if you see from last from 1st April 2024 to 30th June 2024, we have added roughly about 150, 130 more APIs. And as you know, in terms of policy issuance, almost two-thirds of the policy issuance are happening through the APIs. And this obviously helps us to scale the business better, helps us to control and also equally importantly to give better service to our distribution partners. Moving to slide 14, which I think is all other slides are a repeat of the 30th, 31st of March. As you know, we last time for the full year, we had published our audited results on IFRS also and also done this reconciliation between IGAP and IFRS. The IGAP results are obviously of limited review by the auditors, while as I had mentioned in the last call, the IFRS results will only get audited at the end of the year for the full year and will be published in those IFRS results also. This is more a reconciliation from auditor of the IFRS results. Here again, under IFRS 17, what the distribution factor is, what are corporate tax, corporate acquisition cost. So everything has been reconciled between IGAP as well as on the IFRS side. You can also see that the net worth is different between Indian GAAP and IFRS. So that's really briefly about the comments. We'll be happy to answer any questions that you may have. Thank you very much. Even now, to give the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephones. 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, please wait for a moment while the question queue assembles. The first question is from the line of Rishabh Gang from Sacheti Family Office. Please go ahead, sir. Hello. Am I audible, sir? Yes. Thank you. Sir, my question is more on the industry, right? So what do you think is the current and possible impact in 5-10 years of a direct-to-consumer player on motor and health insurance business? These players have better control on relationship, higher ability to cross-sell, and better retention rates. Also, the price offer can have huge difference because they don't have to pay extra commissions year after year to the intermediary. So any view on that, sir? So Rishabh, I think I'm giving a view which is my personal view, and Nicholas is a little bit different view. I think in the last, say, 8, 9 years, 10 years, when you have to build a direct brand, and obviously, GEICO is a company that really started building this over 60 years, 70 years back, you have to get the customers to come now to your website. This basically means you have to spend money on your website to get the customers to your website on the app and not really go on the other platforms. Now, when you attract customers, then you have to also, in the next phase, you have to do conversion. Now, customers who typically come in the B2C space, whether on aggregators or directly to the insurance companies, either would have some brand affinity. They already have some products of the insurance company in place, and they're coming, or they would be coming because they're price sensitive. Now, in my experiences, as you said, in other markets also, it's very difficult. Many insurance companies, say, motor space, if I give an example, to be competitive with even very large players in more than even GEICO, I think, has a motor market share in the U.S. of less than 15%. So if you become too competitive in price to increase the conversion ratio, your loss ratios will go up, your expenses will go down. And if your conversion is low, then your expenses are very high. So these are actually things which one has to look at when one is building B2C brand. In Digit, we are completely channel agnostic. Our philosophy is that we should be there wherever the customer wants to come through any channel. In our direct-to-customer segment, we actually focus more and more on organic visitors to customers who want to visit our website directly. That is really our philosophy. No, so due to the direct relationship, right, these guys can provide more ancillary and support services to customers, also have higher control on the claim process. Also that they have a better retention rate and cross-selling rate. So what is the impact on that business model? Rishabh, I don't know. I'm not going to comment on that in terms of what exactly the cross-selling experience expect is of B2C players to be able to come up with some. What do you think about the support services, right, or ancillary services which they are able to sell to the customer? Any view on that? My view is that I think understanding is that the IRD regulations prohibit you from selling any ancillary services. So at least from a Digit perspective, we haven't evaluated it because we are not supposed to sell anything other than insurance. All right. Thank you so much. Thank you. Thank you very much. The next question is from the line of Kaushik Anand from A91 Partners. Please go ahead, sir. Yeah, Mission Team. My question is in case you are noting PT, which is a disadvantage compared to last year, is there anything you're seeing in the market list to quickly give feedback on the third quarter of the market? Hi, Kaushik. And I think, as you know, in the last five, six years, we have focused a lot on the motor TP business, and we are a large and a decent-sized player here. The challenge we have seen in motor TP business in the last 3 years is there has hardly been any price increase. There is always a bit of inflation in the TP claims. The market in the last 6 months, I would say, has particularly been aggressive on the PT market. I think during these 6 months, when you look at the numbers from January to March and now from April to June, in the PT business, we have not been as competitive in the market. That business has led to this degree in the last 6 months in the PT business. As I said, I think this is a business we are really focused on, and we continuously will keep looking at the opportunities. But if we feel that the business is not profitable, it doesn't make sense for us to write it, then we'll let it go. And I think that's what is happening in this quarter in the last six months. Thank you. Thanks, Prashik. Ladies and gentlemen, please press star and one. Questions. The next question is from the line of Arjun from SBI Mutual Fund. Please go ahead, sir. In AP computation, the government health business and government health business has increased, whereas motor computation has come down. In the cost cases or on topics, how can we still get how could we among cases it will be a value too because of no float and higher cost. If we can still what is the overall proportion that we need to do for the interior, how are the costs? So Arjun, as you know, I think we don't really see any forward-looking statement. But what I would say is that even in TP business, and I've said this before, or any business, you could be writing it at a price of 100, and the ROE could be zero or a bit negative. The acquisition costs are high. On the other hand, a business that is combined ratio of 110 can actually give you a positive ROE if the acquisition cost of that business is low. So that's really at a broader level. This government health business you spoke about, I think this we have been doing now for almost three quarters. And so this is not really a business which is new. It is the same business for which every quarter we have been getting an installment, and that obviously would be reflected automatically already in the loss ratio. As of now, we are not declaring every individual line of business ROE separately. So you'll have to excuse me from giving very specific numbers on that. That is correct. Thanks. Next question is from the line of Arjun Ghosh from Systematix Group. Please go ahead, sir. Hi, this is Rishabh. Just quickly, my side of you know, on the health insurance side of the business, if you can kindly mention how the overall claims environment is behaving in terms of frequency or incidence of claims. Rishabh, just simply highlighting that claims incidence has kind of seen a little bit of uptick within the last few months. You mentioned that the overall environment on the payout side or competitiveness on the motor TP business has seen was high for the last few months. Did you ever get some sense of whether things have been improving in June or, let's say, early 2020? How do you read into it? And lastly, in terms of your B2B business, which is higher or like TP, just whether there's some understanding of the strategies for this business and how should one think of those prospects for your company in the distance over the next maybe 12 to 18 months? So I think on the frequency, as I said, that in May, June, we saw or May, especially, we saw slightly higher claims on health. And not that cyclical trend we saw in motor, where we didn't really see a higher frequency in May. But we need to keep in mind that I think there are dramatic sort of changes happening. I'm not getting into the ESG side of it, but purely from a perspective of in June, we saw very high temperatures for example in India in a lot of places. And obviously, May, June, this quarter, there was hardly any rain. But if you look at July, just one month, there were a lot of places where it has just slowed one month's rainfall in one single day. So I personally, we indeed believe that while we should look at a month-on-month and a year-by-year sort of a trend, these are things which will change and which are changing quite fast. Overall, I think frequency and severity, both numbers lead to the loss ratio. So from the loss ratio, you can actually see this anomaly aside. But broadly, we haven't really seen a change. Some of the lines can go up and some can go down, but we have not, I would say, seen anything dramatic as of now, either in terms of things worsening or things improving. Coming under TP, I would say that July has just started. I think by the time we get the numbers, segment-wise numbers for July for motor TP for the industry, it is difficult for us to judge as to what is really happening. I would actually wait for the numbers rather than just go by what one hears from three, four, or five people. In case of collaboration, we have focused on also collaboration catering to the corporate customers. I think this business has seen a good growth first in the first quarter. This is also an area with a full corporate marketing team in place and decent capacity in terms of ability to guide the business. We'll keep on, I think, exploring more and more business. But I think just to repeat that when we look at any opportunity, I'll say about two years back, month in the year 2022, 2023, 2021, 2022, this business, the corporate liability-related business, product liability, D&O, E&O, etc., this business was really small first. But last maybe 12-15 months, we have seen a bit of a price increase here, and that is where we have started seeing growth. Market is dynamic, and I think if we are getting the price which we are comfortable with, we'll ride this business and let it grow. But if it suddenly becomes very aggressive, like what we have seen in TP, then we would not ride the business. And that is why it becomes almost impossible for us to give any kind of a forward guidance because we look at the opportunities, the rate, supply and demand situation. And obviously, we want to be across all channels and most of the lines of business. But how this will translate in the next quarter is almost impossible for us to predict because we don't really work like that from a philosophy perspective. Just one last question, if I can. How has the traction in business coming through your bank business, and how are the relationships shaping up? I think in this business, which is health, PA, the group business where we have seen recent growth, I would say that since we have de grown in the corporate employer and employee business, the other business, which is non-employer and employee and mostly corporate institutional partners like banks and VCs, etc., that growth is really driven by that portion of the business. Thank you so much. Thank you so much. Thank you very much. The next question is from Jayant Kharote. Jefferies, please go ahead, sir. Thank you for the opportunity and congrats on the massive numbers. Two questions. One is on the motor only, I would like to explain a little. Can you elaborate on the trends in new versus renewals over here? We've seen some competition, seen very strong growth in the renewal business over here, especially given that new vehicle sales are taken. I would like to hear your perspective. And also, if you can kindly speak to spell out some of the intensity in growth. I know it's slightly more granular, but any correction would help me to explore it. Thanks, Jayant. So in motor actually, looking at the new car sales, might not have grown at the way they grew last year, but at least there was some growth overall. And so from that perspective, the overall business of the new car sales hasn't really changed, hasn't really dropped compared to previous year. It might not have grown. Secondly, I think when you look at something like Digit, which is about 6 years or so into 7th-year operation, the new car sales have really been strong in the last 2 years, tied to that COVID year and tied to the lockdown year. So I think obviously our renewal base is increasing year by year now. So the renewals in absolute amounts are definitely increasing. And then there is the third component, which in the industry is referred to as the rollover business in private car, which basically means these are the renewals of other insurance companies. Now, here also, obviously because last year was so strong in new car sales and prior to that, so there is a lot of business which flows, especially in the first year, after year zero when the new car is insured, from one company to the other and also from one channel to the other. I would say in our case, I think all the three, new cars, renewals, as well as rollover business, all three are really increasing in terms of the volume. And on renewal intensity, new versus renewal? So I think just renewals, again, again, depends upon channel to channel. So if you look at, say, agency as a channel that has really good renewal ratio, in our case, I would say when we look at renewals, say, first quarter, this would have through agency channel, we would have seen similar sort of renewal ratio compared to last year, though on a higher base. In case of rollover, etc., difficult to give a generic answer because this would also depend upon which customer segment we are talking about. Geographies, make, model, all of that also play a role. So you might feel that I'm not trying to evade the question. There is actually no generic answer which one can give about our business because the way we see things, Digit is in a very granular way. And if I give you a generic answer that, okay, in motor, we are growing, which they said in new renewals and rollovers, there would be some geographies or some make, model where we would not have grown. So competition intensity also can be very different geographically wise as well as make model wise. So just that, I don't know how to answer this question from that perspective. Let's assume that the competition intensity is high. Let's assume that. Then it will show every quarter in the own damage loss ratios of the company. And the way we see it in Digit is we always look at expense ratio plus claims ratio together. So it could also happen in our case, for example, that the loss ratio is going up, but it is getting compensated on the expense ratio and then vice versa. That's why I would say if you're looking at our numbers, you should see it on the combined ratio basis. Just look at all companies' loss ratio. I think only two companies have published in the U.S. All the detailed numbers will be up in the next one and a half months. And if you track this, you'll actually get an idea. Just to give you an example, in 2022, 2023 year, the own damage loss ratios for the industry, everyone had jumped dramatically because during COVID, people were driving less. And this has been the global experience. I think if you Google it, you'll see that in the U.K., motor prices are at an all-time high. As people came back on the road more than what the normal was, and suddenly own damage loss ratios went up. You will see that also in case of Digit on our claim ratio slice in motor. In one of the years in 2021, 2022, 30-year, the motor own damage loss ratio was 74. So all this will actually start showing on the data. We try and look at all the loss ratios of everyone in the industry and see what the trend is because you might have a feeling, which is based on the feedback you are getting from others, but it doesn't really tell you what the reality is. This is very helpful. I'm just going to squeeze in one last question. Is the PA personal accident book is the channel sort of making you grow so strongly over there? That's what I think when I was answering to your question, I basically said that since the employer-employee group health business has actually degrown, the growth is happening through the institutional business, which is essentially NBFCs, banks, and other similar sort of players. Thanks, and congrats once again for the question. Thank you so much. Thank you very much. The next question is from Aditi Joshi from J.P. Morgan. Please go ahead. Yeah. Thank you for the opportunity. Aditi here from J.P. Morgan. So a few questions from my side. Firstly, on the product mix and on the segment overall product portfolio, I'm just wondering, as in from what's your thought process on expanding this product mix or, let's say, introducing new product categories? Are you thinking of introducing any new product categories? What you have seen in the other markets, especially in the online insurance channels or, sorry, online insurers, online insurers, some product categories of cyber insurance or insurance for insurance. So any thoughts on that? And also because you've highlighted that you have very strong capabilities on the AI side and the automated claims processing, etc., so just any plans of adding, let's say, a technology export segment which is to help other insurers on some other export business segment? And just lastly, on your investment side, I was just wondering, as in in terms of the equity figure, it's somewhere around 2% level. So why is it low as compared to these years? And do you have any plans on changing your asset allocation next time call? Thanks, Aditi. So let me start with investment. If you look at last six years, the way we have grown and we needed in our business when we were growing well and especially in the initial years because of the IGAP amount and your losses are high because you have to upfront all the acquisition cost. So we needed a lot of capital from the solvency margin perspective itself, not from a cash flow because cash flow, I think we have been having positive cash flow from almost the first or the second quarter since we started. And in investments, if you're investing in equity, any loss in the equity actually goes through a solvency margin. So our philosophy has been that since we needed all this capital for growth, for solvency margin, we did not want to take a risk on the equity side because in a known market, you might actually have to raise capital if your equity allocation is high. Now, I think if you think from a perspective of solvency margin being 217, and I'm just giving some rough numbers, and you have 70% investment in equities and the market drops by 20%-30%, your solvency could drop by 20%-25%. You would still be comfortable. So I think we would definitely be looking at increasing our allocation towards equity. As I said, this quarter, we invested roughly about INR 150-160 crore in equity in this quarter because we had an opportunity on a particular date. Going forward, we'll keep increasing it. We don't really have a fixed time frame to say that every quarter we'll increase by 1%-2%. I think we have a very experienced investment team and also a board member who is a specialist in this field himself. So I think our investment committee and our investment team really would decide as to when we increase the equity allocation. On the product mix, as I was referring earlier and I'll answer the question, the new category, that we don't drive ourselves for a certain sort of product mix. We don't have any target, ideal target product mix also in mind. In terms of new categories, we are continuously evaluating whether it was the government health or it is crop or it is something else as an area. This year, we are consciously looking at doing something more in the rural areas. And I think that's the process. All of that is set very early. Kind of very early plans for us to, I would say, in terms of selling a few policies. But I think if this develops well, maybe after about a year or so, I will be happy to talk about this as a category. In terms of AI, etc., I think we use AI and I would also use data analytics to it both in pricing as well as on the claims side. And when you look at automating decisions, whether it is an underwriting, policy issuance, claims allocations, claim assessment, I think this is something which is continuously we have been investing in that the scope of all this has continuously also been increasing. I think some of the examples of this we have covered in detail in our RHP. So if that is of interest to you, so the data might be now about 3, 4 months, maybe 6, 7 months dated, but it will actually give you a good idea as to how we are looking at this AI and analytics strategy. Thank you so much. Thank you very much. The next question is from the line of Kartikeya Mohta from B&K Securities. Please go ahead. Yeah. Hi. Thanks for the opportunity. I just wanted to ask one question related to the management expenses. So we witnessed a steep decline this quarter in management expenses. So is there any one-off in that, or is this sustainable strategy in terms of expenses? So basically, I think if you look at the entire industry, both actually on the life and the GI side, till 2022, 2023, commissions were actually fixed by the regulator. Other acquisition expenses were actually going as part of the management expenses. Now, I think after this was liberalized as of April 23, you would see this across all companies that a lot of management expenses are now moving towards commission. If you want to have an idea in terms of what the efficiency is on management expenses, my suggestion would be that you should actually look at this up at a line of business level for the last three years where you are looking at management expenses and commission together. And then it will give you, I would say, a real good idea about each company. Making comparisons at the LOB level can also be a bit difficult at times because if you are, say, writing more long-term business in motor, you're writing more two wheeler five plus five business compared to somebody who's more focused on CV business, for example, or on private car one plus three, they're also going to make a difference. But for one company looking at line of business total expenses over the last three, four years will actually give you a good idea about this. But again, just to repeat what I said earlier, in Digit, we look at overall expenses plus claims ratio together, and we don't look at them individually. We are okay to have a higher expenses if the loss ratio is low. And we are also happy to have a higher claim ratio and a higher COR if the commission and expenses are lower because, as I said earlier, the 110 you can actually deliver a positive ROE, and at the -100, you might actually have a negative ROE. So that's really the long answer to your short question. Sure. Thank you so much. Thank you. We can take one more question if there is. Next question is from the line of Mahek from Emkay Global. Please go ahead. Yeah. Hi. Thank you for the opportunity. So I had this question on personal accident. So you have grown significantly during the crop in this segment. So do you expect further growth in this segment? And secondly, can you share your thoughts on how you would like to grow in the crop segment? These are my two questions. So as I said, I think this quarter, what we saw is also a large policy. I think, as I said, we keep looking for opportunities, but I won't assume that this is something which will repeat every quarter. So that's the answer I can give. And what was the second question, Mahek? I wanted to know your thoughts on how you're looking to grow in the crop segment. So I would say, Mahek, I think you could actually see what the portfolio has been developing, how exactly we intend to grow, etc. This is something I wouldn't really want to discuss because everyone has their own philosophy in terms of how you develop different channels or different lines of business. So all I can say is that this is a segment where we did a lot of business in 2018, 2019. It was our first full year of business. Then the business vanished. Now, in a small way, significantly still less than what we did in our first year, the business has started again picking up. And this is where we are as of now. And depending upon the rates, depending upon how we see the opportunity, we'll keep exploring this segment. We need to just keep this in mind that crop businesses, especially in India, are highly dependent on monsoon. And the results can be very volatile, which is absolutely fine with us. But one cannot really take a very long-term sort of view in a business to say that, "No, we'll always ride this business. This is the minimum we'll ride," because things change dramatically. And the best case in our case of Digit is to actually look at third-party business. For example, correctly, in 2021, maybe 21, yeah, 2021, Motor Third-Party premium would have been more than 50% of our 55% of our total business. Now this has almost dropped by half in the last 3 years. So things can change dramatically, especially in our sort of philosophy in the way we write and drive business. But we definitely keep our distribution channels or operational ability, our ability to underwrite, handle claims in every single segment so that if there is an opportunity, we can take it. If there is none, then it's not necessary that we'll ride that business. So thank you so much for this great answer. Thanks. Thank you very much. Do we have a last question? We still have 5 minutes. The last question is from Subhajeet Sen from Bajaj Allianz Life Insurance. Please go ahead, sir. Yeah. Our compliments on a good set of numbers. One thing is, if it's simple, if you look at our size versus the industry leader who's also reported to us, these are up to four times our growth rate is similar, would the growth rate be higher? Improvement in COR this time has something expense ratio. How sustainable this is? The improvement in expense ratio, QoQ from 12.8% to 9.6%, how much of that is because of leverage and how much of that is because of managing costs better and more likely to sustain? And finally, you explained some of the issues in terms of our equity exposure. The yield has actually yield on investment has fallen to QoQ from the investment yield from 20% to 6.8% in this index. Thank you. So Suvajit, I think for the investment, if you see, I explained in the slide and it's also mentioned we booked a INR 19 crore loss because we sold some government securities, which will be in the next one year. And to book that loss and replace them with 3- to 5-year corporate bonds where this INR 19 crore loss will actually get recouped in less than 12 months. And because the duration is longer of the bonds compared to the government securities, this will also then be value-added for the rest of the period. If we remove that, then our investment yield has been more or less similar, 7.2 if you look at an annualized basis compared to 7.4 in the previous year. So that's on investment. I would say, I think in terms of expense ratios and commission expenses, and if we look at the combined ratio, both of expenses and claims ratio. So we wouldn't look at, and as I also explained, that commissions if you're writing government business, a crop business might be just 2%. The management expenses might be another 3-4. In government health, your overall expenses might just be 5-6%. In group health, it might be 10% including the brokerage while in motor business, a two-wheeler, it could be as high as 20% commission. So all that is actually a function of the product mix which we have. And you can also see in our case that the mix is increasing towards the non-motor side. So this would always be a function of the product mix. As for the core management expenses are concerned, I think in terms of premium per employee, including outsourced employee, etc., we believe that I think we are doing well on that front compared to others in the industry. And I think that obviously is due to the fact that we invested significantly in the tech upfront, and the benefits are coming as the scale is increasing more and more. As for the other players, industry, etc., I think everyone has published the numbers and others will publish too. And amongst the listed companies you mentioned above, they obviously are a very good company. And we also look at their results with as much enthusiasm as we do ours. Yeah. Subjit, can we grow at a higher rate? Their GWP is not very large. That's true. That's a matter of fact, Subjit. They started in 2001. We started in 2017, and so we're 16 years later. I think I don't know the numbers correctly, but if you look at the top three, four players and then see how many years people took to reach INR 9,000 crore, which we reached in our 6 years, compared to what they had or even from a market share perspective, I would not say that we have done amazingly, but we have done better than almost most companies in this globally, not just in India. But I take your point that the size is much smaller compared to the largest private player, and we have a long way to go. That point is valid. And one just last question is on health, which is roughly 20% of the business. Department, and as an absolute number also, is smaller. What is our right to win in health? How do you view this business, and how do you articulate your strategy there? The same way we had a right to win in the equity business earlier where we became a third-largest player in our fifth year or in our fifth year of operations. Now we still have the right to win where we are degrowing. Same way in every single line of business in COR, for example, we have grown more than the industry. Everywhere we have to keep trying and building some sort of an advantage, whether it is in underwriting, whether it is in distribution needs. The way we see this general insurance business is, at the end of the day, it's an underwriting business. It basically means you should know what you are writing, then we can retain that business. If you look at last year, our premium retention ratio was the highest in the industry. For every single line of business, if you look at last three years, overall, I think we probably would be in the best in class, maybe the second best in class, looking at each year, overall portfolio. But even on every single individual line of business, my sense is, and we should double-check, we should be in the top quartile. According to us in Digit and our philosophy, the right to win only comes from your ability to underwrite the risk and retain the risk. And that is where we keep striving towards building our capabilities. That's all. Thank you. Thank you. Thanks everyone for joining. Look forward to you joining in our next virtual call again. Thank you so much. Bye. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.