Ladies and gentlemen, a very warm welcome to ICICI Lombard General Insurance Company Limited, Q4 and FY 2025 Earnings Conference Call. From the senior management, we have with us today Mr. Sanjeev Mantri, MD and CEO of the company, Mr. Gopal Balachandran, CFO, Mr. Girish Nayak, Chief Technology and Health Underwriting and Claims, Mr. Sandeep Goradia, Chief Corporate Solutions, International Banca ssurance, Mr. Anand Singhi, Chief Retail and Government Business, Mr. Gaurav Arora, Chief Reinsurance, Underwriting and Claims for Property and Casualty. Please note that any statements, comments I made in today's call that may look like forward-looking statements are based on information presently available to the management and do not constitute any indication of any future performance, as future involves risk and uncertainties which could cause results to differ materially from the current views being expressed. 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 in the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Sanjeev Mantri, MD and CEO, ICICI Lombard General Insurance Company Limited. Thank you, and over to you. Good evening to each one of you. Thank you for joining the Earnings Conference Call at ICICI Lombard General Insurance Company Limited for Q4 and financial year 2025. Let me give you a brief overview of the trends we observe in the economy as well as the industry, followed by an overview of the business. Post this, our CFO, Mr. Gopal Balachandran, will share the financial performance of the company for the quarter and the year ended 31st March 2025. The GDP growth for the quarter ended December 2024 stood at 6.2% versus 5.6% for the quarter ended September 2024, as per the data released by Moody's. High-frequency indicators like e-way bills, toll collections, diesel consumption, and GST collections during Q4 of financial year 2025 are all indicating positive economic conditions. Further, Moody's has revised the full-year GDP estimates to 6.5% on February 28, 2025, versus 6.4% published on January 7, 2025. Let me now dwell on certain industry trends which can have an impact on the general insurance industry at large. As indicated during the last quarter, the government expenditure remained flat, which impacted the Commercial Line segment growth for the current quarter. However, we have started seeing an uptick in government spending toward capital expenditure in the past few months. This may be a positive for the Commercial Line of business. For the auto industry, we have seen a growth in rural market in Q3 of 2025, specifically for the two-wheeler segment at 12.7% and the tractor segment at 20.1%, as reported by SIAM. However, in Q4 2025, we have seen a degrowth of 1.9% for the two-wheeler segment and a degrowth of 4.6% for the tractor segment. This indicates a softer rural demand. The private car segment grew by 1.1%, and the commercial vehicle segment had a degrowth of 3.8% for Q4 financial year 2025, as reported by SIAM, which had an impact on motor insurance growth for Q4 financial year 2025. However, for the coming year, the auto industry is expected to have mid-single-digit growth. We remain positive for the motor insurance business, with increasing penetration in the all-vehicle segment. The health segment continues to be one of the fastest-growing segments and is the largest contributor to the industry, constituting 38.1% of the GDP for financial year 2025. However, the industry growth in financial year 2025 was impacted due to the 1/365 accounting norm and lower growth in the health segment and benefit segment, attributable to lower disbursement of credit by NEP basis and MFIs. We believe that the increasing demand for health protection, coupled with increased medical inflation, may drive double-digit growth in the health segment in the coming year. There were some key economic changes which were announced during Q4 financial year 2025. The budgetary announcement of income tax relief provided is expected to result in an additional INR 1 trillion in the hands of Indian taxpaying population, thereby leading to a higher disposable income. The second consecutive interest rate cut, tweaking of norms applicable to Neb basis lending, coupled with infusion of liquidity by RBI, should also support credit growth. These policy changes aim to encourage spending and investment. They are also expected to stimulate demand for goods and services, thereby boosting consumption and propelling demand for risk protection through insurance solutions. However, we remain vigilant on the ongoing geopolitical developments, which may pose risks to both global growth and the Indian economy. Now, let me give you an update on the regulatory developments. The regulatory authority during financial year 2025 continued with various reforms, seeking to expand the market and increase the penetration of insurance products towards the mission of insurance for all by 2047. I would like to mention key circulars which were introduced in Q4 2025 regarding capping the increase in senior citizens' health insurance premium rates to 10% per annum and the introduction of Bima Sugam facility for health insurance policies. We believe these regulatory changes will improve affordability and create operational ease for policyholders. Overall, we remain positive that the GI industry is poised to grow in the medium to long term given the favorable economic and regulatory environment, low penetration, and relatively higher disposable income. Now, coming to the industry performance for Q4 and financial year 2025, the gross direct premium income grew by 1.7% and 6.2% for Q4 2025 and financial year 2025, respectively. Excluding the impact of the 1/365 accounting norm, the GDP grew by 8.6% for financial year 2025. Excluding crop and motor health, the GDP grew by 4.9% and 8% for Q4 2025 and financial year 2025, respectively. Speaking on the specific segments within the industry, the commercial segment reported a marginal degrowth of 1.2% and growth of 1.5% for Q4 and financial year 2025. Within this, the Fire segment registered a degrowth of 1.8% and 5.3% for Q4 financial year 2025 and financial year 2025, respectively, on account of pricing pressure. Excluding the fire segment, the overall commercial segment grew by 8.5% for financial year 2025. The motor segment grew by 6.9% for Q4 of financial year 2025 and 8% for financial year 2025. The growth in the segment has been lower due to muted vehicle sales and continued pricing pressure reflected by high industry combined ratio. The health segment grew at 3.7% and 9% for Q4 2025 and financial year 2025. Within this, group health grew at 4.5% and 10.6% for Q4 2025 and financial year 2025, respectively. Retail health grew at 7.6% and 12.1% in Q4 2025 and financial year 2025, respectively. Looking at the underlying performance of the industry, you may recall our discussion a year back during an earnings call where we expected some semblance in the underwriting discipline in the market due to improvement in the industry's combined ratio during that period. However, the combined ratio for the industry has actually worsened to 113.2% for nine months 2025, as against 112.2% for nine months financial year 2024. The combined ratio for the private sector has worsened to 112.1% for nine months 2025 from 108.3% for nine months financial year 2024. The industry worsening was largely due to motor segment combined ratio, which increased to 123.8% in nine months financial year 2025, as against 118.2% in nine months financial year 2024. Our continued focus on driving profitable growth helped us to improve our combined ratio from 103.7% in nine months financial year 2024 to 102.8% in nine months financial year 2025, and 103.3% in full financial year 2024 to 102.6% for the financial year 2025 on NEP basis. I will now walk you through the company performance across key business segments during Q4 and financial year 2025. The company's GDP registered a growth of 8% for Q4 2025 and 11% for financial year 2025 on NEP basis. With the 1/365 accounting norm for Q4 2025, the company registered a growth of 2.3%, as against the industry growth of 1.7%. For financial year 2025, the company registered a growth of 8.3%, as against the industry growth of 6.2%. Excluding crop and motor, health, the company's growth was 2.2% and 7.7%, compared to the industry growth of 4.9% and 8% for Q4 2025 and financial year 2025, respectively. In the Commercial Line segment in Q4 2025, our growth was at 2.8%, as against the industry degrowth of 1.2%. For financial year 2025, we grew by 2.1%, as against the industry growth of 1.5%, thereby maintaining market share. This indicates the strength of our brand relationship and service quality in an environment where the industry faced continued pricing pressure throughout the year. In the Fire segment, we grew in line with the industry, and in marine cargo, engineering, and liability lines of business, we reported growth higher than the industry, leading to market share accretion. In motor segment, we grew at 0.1% for Q4 2025, as against the industry growth of 6.9%. We continue to drive our motor strategy based on granular portfolio segmentation and prudent risk selection. For the financial year 2025, we grew by 11.5%, as against the industry growth of 8%. Consequently, our market share grew to 10.8% for financial year 2025, versus 10.5% for financial year 2024. The portfolio mix for private car, two-wheeler, and CV stood at 53.4%, 25.4%, and 21.2%, respectively. Our continued focus on multi-channel distribution, underwriting capabilities, and efficient claim settlement and actuarial practices helped us in maintaining our leadership position. Moving to the health segment, we grew by 22.1% and 19.2% for Q4 financial year 2025 and financial year 2025, respectively. With the 1/365 accounting norm, we grew by 9.7% and 12.6% for Q4 2025 and financial year 2025, respectively. Our retail health segment registered a growth at 47.7% for Q4 financial year 2025. With the 1/365 accounting norm, the growth of Q4 2025 was 25.1%, as against the industry growth of 7.6%. For financial year 2025, the overall growth stood at 38.1%. With 1/365 accounting norm, the growth for financial year 2025 was 25%, as against the industry growth of 12.1%. As a result, we gained market share from 3% in financial year 2024 to 3.3% for financial year 2025. The group health employee segment witnessed growth of 24.9% and 18.5% for Q4 2025 and financial year 2025, respectively. Our group other businesses degrew by 5.5%, and with the 1/365 accounting norm, the degrowth was 30% for Q4 2025. For financial year 2025, group other businesses had a muted growth of 5.3% on account of impact on health benefit business through the bank channels. With the 1/365 accounting norm, this segment showed a degrowth of 10.5% for the year. We had spoken about various One IL, One Team initiatives in an earlier earnings call. One of the initiatives we had spoken about was the consolidation of customer-facing digital assets like IL TakeCare Health app, website, and digital alliances under One IL, One Digital to deliver a superior customer experience and to drive efficiency. Some of the digital outcomes achieved in financial year 2025 include increasing unique customer visits by 2X on our digital platform, 37% growth in fresh transactions on our digital platform, downloads for our one-stop solution, IL TakeCare Health app, surpassed 14.9 million. The business done through the app stood at INR 927.7 million and INR 2,653.2 million for Q4 financial year 2025 and financial year 2025, respectively. Consequently, our customer-facing digital asset business grew by 15.8%, constituting 6.6% of our overall GDP for financial year 2025. Now, I would like to share with you some initiatives taken by us for improving the customer experience and driving efficiencies for claims. On the motor side, our preferred partner network serviced 74.1% of our non-moving claims in Q4 2025, up from 69.6% in Q4 2024. For financial year 2025, this number stood at 73.2%, up from 65% in financial year 2024. Our cloud calling facilities were used by 89.6% of our motor customers in Q4 financial year 2025, as against 77% in Q4 2024. For the full year, this number was at 86%, as against 49% previous year. This resulted in a reduction of calls-to-claim ratio by 21% for the year. Our average claim settlement period for retail lines of business has seen improvement from 6 days in financial year 2024 to 5 days in financial year 2025 for motor OD and for 5 days in financial year 2024 to 3 days in financial year 2025 for health. Our IL SAC initiative, which was launched in April 2024, offered ongoing claim support to over 90,000 customers across 56 cities and 2,500 hospital networks in financial year 2025. Our focus on customer experience and process efficiencies has led to healthy NPS of 67 and 69 for health and motor claims, respectively, for nine months 2025. With all the above efforts, we are pleased to share that the company's premium growth has been higher by 210 basis points, as against the industry growth. Our focus on driving profitable opportunities has further resulted in improvement in the combined ratio from 103.3% in financial year 2024 to 102.6% in financial year 2025 on NEP basis. On the 1/365 accounting norm, the combined ratio stood at 102.8%, leading to a PAT growth of 30.7%, and then delivering ROE for the year at 19.1%. As we enter into the new financial year, we remain committed to achieving the desired scale through creation of positive customer experiences, leveraging data analytics and a technology-first approach, harnessing our multi-product, multi-distribution strategy, and with a continued focus on product innovation. With our core philosophy of one-IL, one team, we continue to scale up the profit pool and to drive sustainable growth. I will now request Gopal to take you through the financial numbers for the recently concluded quarter and financial year. Thanks, Sanjeev, and good evening to each one of you. I will now give you a brief overview of the financial performance for the recently concluded quarter and the financial year. We have uploaded the results presentation on our website. You can access it as we walk you through the performance numbers. With effect from October 1, 2024, long-term products are accounted on a 1/365 basis, as mandated by the regulator. Hence, Q4 and FY2025 numbers are not comparable with prior periods. For more details on the impact, refer to slide number 15 of our investment presentation for further details. The gross direct premium income of the company was at INR 268.33 billion in FY2025, as against INR 247.76 billion in FY2024, a growth of 8.3%, as against the industry growth of 6.2%. GDP of the company was at INR 62.11 billion in Q4 FY2025, as against INR 60.73 billion in Q4 FY2024, a growth of 2.3%, as against industry growth of 1.7%. On the retail side of the business, GDP of the motor segment was at INR 107.4 billion in FY2025, as against INR 96.34 billion in FY2024, registering a growth of 11.5%. The advance premium for the motor segment was at INR 37.17 billion at March 31, 2025, as against INR 36.44 billion as at December 31, 2024. GDP of the health segment was at INR 69.5 billion in FY2025, as against INR 61.71 billion in FY2024, registering a growth of 12.6%. Our agent, which includes the point-of-sale distribution count, was at 140,736 as at March 31, 2025, up from 140,077 as at December 31, 2024. GDP of our Commercial Line segment was at INR 69.95 billion in FY2025, as against INR 68.51 billion in FY2024, registering a growth of 2.1%, as against industry growth of 1.5%. Resultingly, our combined ratio stood at 102.8% for FY2025, as against 103.3% for FY2024, excluding the impact of cash losses of INR 0.94 billion in FY2025 and INR 1.37 billion in FY2024. The combined ratio was 102.4% and 102.5%, respectively. Combined ratio for Q4 FY2025 was 102.5%, as against 102.3% in Q4 FY2024. Our investment assets during the quarter rose to INR 535.08 billion, as at March 31, 2025, up from INR 515.97 billion as at December 31, 2024. Our investment leverage net of borrowing was 3.74 times, as at March 31, 2025, as against 3.76 times at December 31, 2024. Investment income was at INR 42.5 billion in FY2025, as against INR 36.1 billion in FY2024. On a quarterly basis, investment income was at INR 8.77 billion in Q4 FY2025, as against INR 9.54 billion in Q4 FY2024. Our capital gains, net of impairment on investment assets, stood at INR 8.02 billion for the full year, as compared to INR 5.51 billion in the previous financial year. Capital gains, net of impairment on investment assets, stood at INR 0.06 billion in Q4 FY2025, as compared to INR 1.56 billion in Q4 FY2024. Our profit before tax grew by 30% at INR 33.21 billion in FY2025, as against INR 25.55 billion in FY2024, whereas PBT degrew by 4.2% at INR 6.68 billion in Q4 FY2025, as against INR 6.98 billion in Q4 FY2024. Consequently, profit after tax grew by 30.7% at INR 25.08 billion in FY2025, as against INR 19.19 billion in FY2024. PAT degrew by 1.9% to INR 5.1 billion in Q4 FY2025, as against INR 5.19 billion in Q4 FY2024. The Board of Directors of the company has proposed a final dividend of INR 7 per share for FY2025. This payment is, however, subject to approval of shareholders in the ensuing annual general meeting of the company. The overall dividend for FY2025, including the proposed final dividend, is INR 12.5 per share. Last year, the overall dividend was INR 11 per share. Return on average equity was 19.1% in FY2025, as against 17.2% in FY2024. Return on equity for Q4 this year was 14.5%, as against 17.8% in Q4 of last year. Solvency ratio was at 2.69 times at March 31, 2025, as against 2.36 times at December 31, 2024. Continued to be higher than the regulatory minimum requirement of 1.5. As I conclude, I would like to assert that we remain focused on our strategy of driving profitable growth, consistent and sustainable value creation for all our stakeholders, while ensuring that the interest of policyholders is in the forefront at all times. I'd like to thank you all for attending this earnings call, and we will be happy to take any questions that you may have. Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone 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'll wait for a moment while the question queue assembles. The first question comes from the line of Prayesh Jain from Motilal Oswal Financial Services Limited. Please go ahead. Yeah, hi. A good set of numbers on, especially on the combined ratio front. Just your thoughts on how do we see the growth from here, firstly, from an overall GWP perspective, given the 1/365 impact would continue to be there in one-half of FY2026. Second half would be unwinding of the GWP and contributing to some part of growth. That would be the first question. Second question would be on your combined ratio, whether you would look at combined ratio further improving from the one that reported in the for FY2025. A little bit on the Fire segment, if you could highlight what are the kind of renewals we've seen in January and also in the April renewals. Those would be my three questions. Thanks. Okay. Yeah. Thanks, Prayesh. I think with respect to the growth, even when I was reading in terms of what it is, line by line, I had covered, but again, I'll talk about it. Motor, per se, we are expecting on the new sale, mid-single digits. We are also going by the numbers as has been put across by other OEMs as to what they are seeing. I think the base on the private car in particular is high. I also spoke about the fact that the Q4 two-wheeler numbers were negative, which was a bit of a surprise vis-à-vis what we saw in Q3. Commercial vehicles, I would be more positive overall because government CapEx and a lot of other activities, which in the last financial year had remained subdued, should get picked up. Net-net, motor, we will see single-digit to maybe just about double-digit growth is what our prediction is. Look, all of these things can change real time. We'll keep you updated, but that's what our belief is. On the health side, Prayesh, our own belief is we should see double-digit growth. Now, health has two components: retail health and as well as the group health part of it. I'm more clearly talking about the retail health part, which will continue to see far more incremental business in terms of new-to insurance. Also, there would be whatever inflationary growth that comes out in terms of overall this. We would remain positive on health. Health, with a 38% contribution, will not be surprised if we see that contribution probably growing to a 40% and thereabouts and becomes the largest and will continue to be the largest player. The last but not the least, in terms of the Commercial Line of business, we've had one of the most difficult years on Commercial Line, as you see. We've never seen a growth of this nature going to no single digit in the last seven to eight years. Clearly, it had multiple factors: Fire pricing, which we spoke about. However, going forward, as we—you spoke about, and I'll probably talk about the other question that you put across—we saw a lot of semblance in the industry overall on the Fire side. On that basis, we do believe and we do see relatively much better numbers on Fire. With the activity on the CapEx, which is coming through, the engineering line of business should also do well. Overall, commercial, we would like to believe that there should be a—we should be back to a double-digit kind of a growth at the industry level. I think your last question was on the combined. I think, Prayesh, again, if you look at what we have been saying, obviously, our performance will be in the context of how the market performs. Which is why we kind of also put that as a part of the opening transcript, as in to say that at the beginning of the financial year concluded, we had kind of possibly expected a lot more semblance to pay out. In reality, if you look at it, I think the market seems to have gone slightly more in that sense north. I think combined ratios have kind of increased almost about 100 basis points at an aggregate level. Obviously, we'll wait for the full year numbers to play out in terms of what the players report. Obviously, we will be at it when it comes to, let's say, driving profitable opportunity. Hence, the endeavor will be obviously to try and see how we can create a lot more efficiencies, whether it is on loss ratios, cost, etc., etc. Obviously, we'll select the right portfolio mix. Obviously, we will see how the market direction plays out. In that context is how we would also want to see our combined playthrough. Having said that, definitely, I think the gap between us and the industry combined, whichever way you look at it, I think obviously we will be able to kind of do a lot more positives to play out. In the aggregate, I think what we have spoken about is time and again, we will look for trying to see if we can do that improvement in the return on equity that we can give to stakeholders, the range that we have generally spoken about in that range of 16-18%. The endeavor will be to obviously try and see over the long term to move towards the 18-20%, depending on how the market plays out. Yeah. I think, and also the simple answer is, would we like to improve our combined? Certainly, yes. As Gopal mentioned, we saw a trajectory when we came in last year where industry combined had shown improvement. On the basis of that, we felt we will go. We also would like to see a similar thing, but that deterioration did not happen. That deterioration most has happened in terms of motor moving from 118 to 123 for a nine-month combined. That being said, we will let these things play out. In our mind, the single factor that drives is, are we able to generate the ROE? That is what largely Gopal is speaking about as far as we as an entity is concerned. Okay. Just your thoughts on motor TP price? That will be my last here. We always remain hopeful, but no news as yet. Is the industry seeking it? The answer is yes. If it comes through, the answer is no. We are planning on coming out in t hat sense. Yeah. Okay. Yeah. Thank you so much. Thanks, Prayesh. Thank you. A reminder to all the participants, in the interest of time, please rest. Next question comes from the line of Sanketh Godha with Avendus Spark. Please go ahead. Yeah. Thank you for the opportunity. Gopal, in the current quarter, we seem to have done a little more reinsurance-accepted business because there is a meaningful difference between GDP and GWP in the quarter, almost 10%. Just wanted to understand the color of this business. Do you see opportunity in reinsurance-accepted with price hikes going up? Probably you will do the same kind of a business in subsequent year also. Any thoughts on those lines? Just want to understand. The second question, Gopal, was that if you could not book capital gains in the current quarter, your yield remained at 6.3. Suppose hypothetically market remains weak largely for FY2026. Is it fair to say that your 6.3, 6.4 is the yield probably for the entire FY2026, and therefore we need to look at ROE from that perspective? Just wanted to understand that a bit from you. Lastly, data keeping question. If you can give retail health loss ratio breakup and motor GWP breakup into new and old, which you usually do. Thank you. Yeah. Maybe I think I'll first do the data keeping question first, which is something that keeps coming to us every quarter. I'm just kind of giving you the numbers both for Q4 of last year and Q4 of this year first. I will give the numbers for the full year in terms of the breakup between corporate health and the retail indemnity numbers. Q4 of last year, corporate health loss ratios were 88.1%. The retail indemnity numbers, again, for Q4 of last year was 64.6%. Vis-à-vis this, Q4 of this year, corporate health is at 97.2%. Retail health, broadly the range that we have spoken about, is at about 64.8%. On a full year basis, this number for corporate health stands at about 93.7 last year. The current year, again, last year retail indemnity numbers is 65.4. Full year, this number for corporate health is at 97.6. Retail indemnity is 67.9. That's the numbers in terms of the breakup between corporate health and retail health. Now, coming to your first question on reinsurance-accepted, one, at an aggregate level, obviously, if you ask us, underwriting philosophy is to drive profitable growth, whether it is with respect to the gross direct premium income that we write or even with respect to, let's say, the reinsurance acceptances to the extent whatever we do. Therefore, from a philosophy standpoint, I think we will stand committed to driving profitable growth across the revenue streams that we source. Having said that, I think if you look at an aggregate level, I think in terms of roughly the premium that we would have written of close to about INR 28,000 crore or thereabouts, the extent of reinsurance inward will be a single-digit number. Hence, to that extent, I think a large part of the opportunities is what we see clearly even in the domestic market. Plus, at the same time, obviously, we look for, given the fact that we also have an office in our IIO business, we would want to kind of continue to see how we can leverage profitable opportunities even through the IIO business. Hence, that is how we would kind of play through. Whether a particular business comes through in a quarter or otherwise, I think, again, as I keep saying, our business is significantly cyclical. Wherever we see opportunities play out is how you will continue to see the mix of business between direct, RI, etc., etc., play out. The larger number to look at will be more on an annual basis. That will be more reflective of where we are in terms of our approach to writing domestic and reinsurance inward. To your second point on, yeah, sorry. Sorry, Gopal. I was asking this question predominantly because you will see a better pricing environment in next fiscal year. If other segments slow down, say, motor slows down, because of the weak auto cycle, is it fair to say that this product might be an opportunistic approach to drive the overall growth maybe from that perspective because the pricing environment? Exactly. Sanketh, your point is absolutely right. That's exactly what I said. I think if you ask us, for us, both of them are preferred areas of opportunity. Therefore, to that extent, where we see a preferable segment for us to be able to underwrite, we will look at both. Will it suddenly become a very large proportion of our overall revenue stream? At this point of time, clearly not. Obviously, we will look at the, as I said, profitable opportunities between domestic and the reinsurance inward. The revenues that we will eventually source will be a mix of both. On your point on capital gains, I think if you look at the approach that we have taken in so far as building the investment portfolio is concerned, I think the treasury team has done a brilliant job in terms of how to kind of balance the mix of asset classes between equity and the fixed income portfolio. That is the reason during this last period of high interest rate regime, we have been able to kind of significantly go long. Which is the reason, I think, even in our earlier earnings call, we have spoken about our duration of the book, that still continues to be slightly in excess of 5.3 years. If you look at the yield to maturity, the yield to maturity of the book also kind of currently stands at about 7.55%. Hence, and this is what is kind of translating into if you look at our mark-to-market positions on the overall investment book, while on the roughly an aggregate mark-to-market gain as on the balance sheet date of roughly about INR 18 billion in terms of the mark-to-market underutilized gains is what we have. I think the portfolio is well positioned. The question to ask for is, what happens in case if you see possibly sustained periods of price competition or sustained periods of low interest rate regime? Now, all of that, I think in so far as the second part of, let's say, periods of low interest rate sustaining in the next year, I think to that extent, I think our duration call will kind of largely reflect that. Of course, reinvestment of the incremental cash flows will get subjected to getting placed at a lower interest rate. That will be true for the entire market. Therefore, the entire market will have to work much more harder in terms of improving the pricing. Therefore, on balance, which is what we keep saying, I think the ROE range that we will work, which will be through a combination of driving underwriting outcomes and return on investment, that will be in the range of 18-20%, assuming the market obviously shows signs of change. Sanketh, now I'll just give you the lay of the land. If you go back in time in April, as we were finishing our financial year 2024, if you would have told us to guess the growth rate for Commercial Line of business, we would have said definitely it will be in double digits. If you would have told us on the Banca line of business, which is a big practice we have, again, we would have said a decent mid double digit. As transpired in the course of the year, both of these lines had a relatively difficult year. Again, the emphasis that we have as a multi-line, multi-product companies are we agile enough to toggle? Even when you look at the numbers that you see quarter on quarter in motor, we had a significant gain in quarter one and quarter two. Again, in quarter three and quarter four, we have the PSUs, which have built up fever intensity, which is not making much of an economic sense. You have seen us growing relatively low while we have finished the year overall with a gain on market share. What I am trying to emphasize to all of you is what we see and what comes through, there can be a gap. As an organization, we are expected to maintain that level of agility to make those shifts happen. What we predict not necessarily is the way the market will end up behaving. We will have to factor that. I come back. In light of that, the focus internally for us as an organization boils down to, are we able to generate the ROE that is expected by all our stakeholders? All right. Good. Gopal, on the motor growth, we'll take the cue from you. Mr. Gopal, please return the cue for more questions. Thank you. Next question comes from the line of Nidhesh Jain with Investec. Please go ahead. Thanks for the opportunity. There are two questions. First is on Fire pricing, are we already seeing signs of improvement in Fire pricing for the industry? Yeah. The answer is yes. There is some semblance. I would like to put a word of caution because we still have to see a lot more flowing through. As things stand, in the first couple of weeks of April, there was definitely much better discipline in the market. Sure. Secondly, can you speak about IFRS impact on our profitability or ROE, any rough indication? Because some of the other companies are disclosing their IFRS number, which is also quite useful. If we can also get some indication around that. Gopal will give the indication. My only point is, just to put things in perspective, there is an economic value and there is an accounting value. All these nuanced changes are eventually on the accounting part of it. There is obviously an implication in terms of how positively IFRS can help us. We, as an organization, would 100% commit ourselves on the economic value. Not only Gopal, if you can just talk about this. I think we have actually kind of spoken this even in past calls. Therefore, I think our stance would still be the same, as in to say that I think we will continue to evaluate businesses more on an economic basis because end of the day, that's what will eventually translate in terms of what is the outcome that we are writing from a risk perspective. Transitions to IFRS obviously are accounting changes, which we obviously will be in that sense well prepared. At this point of time, obviously, we are getting most of our work done internally, whether it is in terms of understanding the impact of change, getting systems geared up so that as and when there is a clear regulatory stipulation is what we have currently indicated. We will be kind of pretty much ready with whatever it takes to do the transition. At the same time, I think what I think we have been speaking about also is the fact that as and when we will eventually transition to IFRS, there will be a lot of, in that sense, assumptions which will have to be made by market at large. I think it is important for, again, various stakeholders to ensure consistency in comparison, a need for possibly to see if we can get a lot more alignment with some of those assumptions that the market participants use. I think our endeavor is in that direction, and which is what we are working with the council to see how we can possibly play that role far better in the current times. Obviously, internally, we are pretty much well prepared. Major areas of impact, I think, I have already called out. In that sense, no specific incremental areas to call out as a part of the current impact assessment that we have done. Yes, we are ready, and we will roll out whenever we see the regulatory timelines coming into action. When we speak about economic perspective, we are talking more about ROE and not combined ratio, right? Yeah, because end of the day, I think whatever you write has to kind of translate into a return to stakeholders through a combination of what we deliver on underwriting plus obviously how effectively are we able to put the cash flows to use. Hence, to that extent is what we will kind of be largely driving as an institution. Thank you, sir. Thank you. That's it from my side. Thanks, Nitish. Thanks, Nitish. Thank you. Next question comes from the line of Avinash Singh with Emkay Global Financial Services Limited. Please go ahead. Yeah. Good evening. Thanks for the opportunity. Just a couple of questions. First one is on motor TP. If I see again around INR 915 million of reserve release that you had this fiscal. Now, of course, still you have not touched your FY2023 onwards if I see or yeah. Now, the backdrop is that the price hike is not happening. Do you see, I mean, the support from reserve releases to continue to provide the support in terms of the motor TP clearance to catch up with the clearance in place? Also, on that front, another question related is that, okay, industry has seen the kind of, despite this EOM coming, the overall non-clearance expense going up. Now, do you see that scope next year if the claims were to be under pressure, OpEx side, because now the March 26 deadline for EOM limits reaching some kind of sanity prevailing among some extreme or aggressive peers? Would that lead to your OpEx further improvements on here? Because at the end of the day, that's a sort of a relative market-related phenomenon. You cannot outright yourself in the market. If the peers were to improve, will that also be kind of helpful? The second one on the April 1 renewal, if I read correctly, India, even in Asia, the reinsurance capacities and pricing both have been kind of favorable. In that backdrop, does that sort of help in terms of your profitability in these kind of reinsurance-heavy line items like Commercial Lines? Thanks. Okay. Maybe I will take the second part first. I think what you observed is absolutely right. Hence, obviously, that aids us, which is what we have been kind of talking through. I think the more the market gets sensible in so far as the need for compliance to the Expense of Management guidelines are concerned, that kind of definitely augurs well from an overall market discipline standpoint. Again, as you rightly indicated, FY2026 is the time period that the regulator has stipulated within which companies are expected to toe the line when it comes to meeting the guidelines on Expense of Management. Obviously, this is something that we will be definitely kind of closely watching for. At the same time, I'm sure all of you are also kind of clearly hearing that even the regulator is wanting to make sure that as an industry, pretty much everyone in the market kind of follows the discipline on compliance to Expense of Management. Hence, the short answer is, of course, it augurs well in so far as favorable market development is concerned. Within that, indeed, obviously, that's something that we have always seen. When the market gets far more sensible on underwriting than ICICI Lombard by virtue of its brand, technology, service, etc., etc., is obviously able to kind of command an incremental market growth without compromising on underwriting outcomes. That's the response to the second one. To the response on the third one, I think with respect to the reinsurance renewal cycle, again, Avinash, I think you all understand insurance as much as what we do. Therefore, in that sense, the renewals are always through cycles. You will always see periods of softness, and at some points of time, the market starts to get hardened. I think the key is, end of the day, I think if you look at from our standpoint, what we have, again, particularly in the Commercial Lines, where you relatively see a higher proportion of reinsurance, we have continued to stay disciplined on picking risks which we think are viable from an underwriting perspective, irrespective of which cycle the market is currently operating at in terms of the reinsurance renewals. Now, that's what is finding favor if you were to see, which is what we put out also on our investor presentation, as in to say that the quality of the partners with whom we work clearly is kind of pretty much there. Obviously, we don't, in that sense, want to take any unnecessary credit risk. We are very, very conscious of making sure that we work with high-quality panel of reinsurers. That gives us a lot of comfort when it comes to getting capacity. Now to your point on terms, obviously, again, we get terms which are better than the market. Even this year, at least what we understand relative to the market, I think we have been given the underwriting performance that we have exhibited to the reinsurers. I think we believe we have been able to get terms both on commissions and the costs that we incur for protecting our net to be possibly better than where the market is placed at. That will again kind of aid us in our ability to further dwell on incremental market share. That is in response to the third question on reinsurance renewal cycle. To your first point on Motor Third Party, I think, again, I keep saying this. I think the ranges is what we have spoken about in terms of the motor loss ratio. Again, I will keep saying we have to look at motor as in the aggregate, and the range that we have spoken about even in the earlier earnings call for the segment has been between 65-67. Broadly, if you look at the loss ratio outcome that has played out for even the current year, it's pretty much within the range that we have been kind of talking about. Hence, that's how we look at it. Now, what can happen in case if no third-party price increase sustains for one more year in FY2026? Obviously, that means we will have to do a lot more work to make sure that we are able to identify better risk selection and continue to see how we can drive profitable growth. That's what we will focus on. More importantly, let's say for the market, they will have to work much more harder, particularly for those companies which have combined with no third-party price increase and a compliance to Expense of Management is something that some of those market participants will have to work on. Again, we believe, again, favorably placed in terms of the opportunity that one sees on Motor Third Party. Finally, on the point on reserving, I think, again, our approach to the actuarial principles pretty much stands intact. There is absolutely no change in the way how we have been kind of reserving for the portfolio in terms of consistency. That is the reason even if you would have seen the reserve redundancy that we would have seen across key lines, we continue to see one more year of reserve redundancy. That reflects the quality of reserving that we have been able to kind of play up to. Hence, no change in the actuarial thought process. Thank you. Very clear. Thanks. Thank you. Thank you. Next question comes from the line of Shreya Shivani, with CLSA. Please go ahead. Hi. Thank you for the opportunity. I have one question that is on the expense ratio for the quarter. The way I understood the impact of the 1/365 accounting last time, the quarters are similar in terms of what happened in 3Q to 4Q in terms of the volume growth that you got or how much you have retained. Ideally, your expense ratio should have been similar to what it was in 3Q. Even the absolute amount has declined in 4Q if I do not talk about the ratio. Even the absolute amount has declined. What has helped us in having much lesser net commissions, at least, if you can help me understand? This is just about the quarter. Again, it's like the question that keeps coming to us in terms of the third-party loss experience on how the loss ratio movement are happening between quarters. I think, again, I will kind of keep reiterating. I think our focus is very clear to make sure that expense plus commissions put together as a company, we are very, very conscious of making sure that we run the overall operations at an EOM threshold which is less than 30%, and which is what if you see on a full-year basis, I think for us, the Expense of Management numbers stands at about 29.5%. Hence, I think we are pretty much committed. Within a quarter, various factors in terms of business mix, in terms of efficiencies that we always keep looking for in terms of our own internal processes, and so there are numerous factors that go into it. Hence, which is why we keep urging to keep looking at numbers more on an annual basis rather than a particular quarter. More so on an absolute basis, I think, again, there can be many factors to it. For example, I mean, whenever if there are periods where I do a lot more of those investments in that quarter, you will see the cost hitting us and so on. A better number to look at will be more the Expense of Management number than anything else. Also, as in since you're comparing quarter three and quarter four, just to highlight, it's the configuration of business that comes in. In quarter three, we have far more new book that comes in. It's a season where the sale of new goods, our market share in motor also grows in a very, very significant way. In January, typical January 1st also is a reasonably big line on the commercial side of the business, which can further impact the expense ratio in a positive manner. It's more driven by configuration of what nature of business you write, which creates a differentiation. You know that when these things happen and you have a quarter where there's a new coming in, it would impact us in a far more. Yeah. Yeah. Okay. Yeah. The only thing I was getting confused that if the retention ratios are similar between 3Q and 4Q, then your commission rates should have been similar, ideally, your net commission ratios. I get the part that if you've written more Commercial Line in 4Q, then obviously. Yeah. Yeah. Okay. Okay. Fair. Okay. Thank you. Thank you. Thank you. Next question comes from the line of Prakhar Sharma. Jefferies, please go ahead. Hi. Good evening. Just wanted to delve upon Nidhesh's comment on the pricing stance by some of the PSUs or broader market in the motor vehicle business. Could you just elaborate on this, that from what segments of general GI operators did you see a bit of an aggressive stance? Has there been any change? Because while we talk about the EOM sunset for FY2026, are the private ones also genuinely trying to consolidate on pricing? Second, just connected to this, is there a possibility or is there a discussion around the EOM getting pushed out by a year or so just so that everybody makes it without too much disruption? Thank you. Prakhar, I think on the PSU aggression, it's primarily driven very extensively on the motor side. Will it sustain? Too early to comment. There were shades of that visible in quarter three, but quarter four, if you see, they have overall bucked the trend and they have gained significant market share also in the motor segment. It would be anybody's guess in terms of what their plan is. We are pretty ready to face whatever be the trajectory that they have and will wait and see how it pans out. We would continue to, as I said in my initial remarks, that we would continue to operate within reason because these things can happen at multiple levels with multiple players. Sometimes it's private sector, sometimes it's public sector, but we need to stick to our trajectory of what we want to do. With respect to Expense of Management deferment, our understanding is that what got called out was all and final. We do believe it will be good in long term for the industry if there's a stimulus on that count. We are known to comment in terms of whether a dispensation will be given for another year. If you ask a personal belief, another year of dispensation will make them continue the practice as it exists and will not change anything because they can ask another year of dispensation. That is where we would be, that is where we will leave this part of the conversation at least. Perfect. Thank you so much. Yeah. Thank you. Thank you. Next question comes from the line of Aditi Joshi with JP Morgan. Please go ahead. Yes. Thank you for taking my question. Just a very simple one. Sorry, I could not go through the presentation. With respect to the investment income, was it in the fourth quarter, it was lower on a year-on-year basis? We wanted to understand, is it majorly on account of interest income or on account of lower realized gains? Yeah. We put that as a part of the opening script for G-Sec. Largely it's because of, I mean, the nature of how we kind of, the nature of how we run the overall investment book. The short answer is capital gains. Quarter four last year, capital gains was roughly about INR 150 crore plus. This year, pretty much our capital gains is as good as a very, very small number of roughly about INR 6 crore. That is the reason why you see the overall investment income for Q4 of this year to be slightly lower than the Q4 of last year. Having said that, I think what has worked well, again, as I said, I think the treasury team has done a great job in trying to make sure that the portfolio has got significantly kind of balanced to make sure that we go long. Which is why, again, time and again, we have been giving the yield-to-maturity numbers, which used to be less than 7%. That number, as we see, currently stands at about 7.55%. This is for year- to-date. At least for quarter four, the short answer is capital gains. Yeah. Also, something which I must put across, what our treasury team has done is even over quarter on quarter, we have increased the yield of the book from 7% to 7.55%, which is a big one, with a tenure also which has gone to 5.34. Overall, it puts us well in terms of the current scenario that exists on the interest rate part. Also, quarter three, it was more of a tactical call where our investment team felt that it was much better to book capital gains in that quarter because of what would happen in quarter four. I said it did work out for us. Okay. That's clear. Thank you. Thanks, Aditi. Thank you. Next question comes from the line of Neeraj Toshniwal with UBS Securities. Please go ahead. Yeah. Hi. My question is regarding getting these FY26, how should one think about the growth? Even whatever we have discussed, there's still the way of uncertainties, as you mentioned. The playbook could be different than what we right now think about as. Neeraj, sorry to stop you. We are not able to hear you. You're not that audible. Is it better now? Yeah. Maybe if you can just repeat your question, Neeraj, that will help us. One question is on the growth side because given this 1/365 will kind of normalize from October, how should one think about overall growth and the separate areas with the main health and obviously motor, there's been a lot of positive intensity which has increased, especially from PSUs, what I understand. Any comment on overall growth we are targeting in FY2026? That is one. Second is a bookkeeping question on the other income from the non-operating reserves, which seems to be very high. Anything on that? Maybe I'll take the first one. I think on the growth side, Neeraj, the good part is I think if you look at some of the actions which are being taken both at various governments and even our own insurance regulator, I think the efforts have been very, very positive. I think, for example, the recent budget did see a lot of people kind of getting a higher disposable income, which kind of augurs well. Now, all of this will start to kind of play through maybe over the subsequent quarters. That is a very, very positive action which comes from the government. Equally, I think regulators are doing their part in terms of trying to keep relatively the interest rate environment at a far more acceptable level. The very recent rate cut, again, kind of augurs well insofar as driving retail consumption and in general driving consumption circumstances. There are clearly a lot of positive factors which should aid when it comes to, let's say, growth because ours is a direct reflection of what happens insofar as economic activities are concerned. Some of these positive actions by the government and regulators augur very, very well. Coupled with this, I think if you look at the relative side for the next two quarters, in general, I think we are very, very positively placed in terms of how we see the opportunity play out. Also, what we kind of responded to the earlier question on how the initial corporate renewal cycle has been, I think that looks, again, very, very promising. That is something that has started off on a positive note right from the beginning of the year. Hence, even for the rest of the year, one should see that cycle play through. Overall, I think we are kind of positively looking at in terms of how the market should kind of play out. Within that, I think what we have spoken is to try and see how we can continue to deliver that outperformance vis-à-vis the industry growth numbers is what we will be kind of penciling in. First two quarters, you are absolutely right, Neeraj, in terms of the impact of 1/365 will obviously kind of play out. Maybe to that extent, industry growth could be a little subdued, but on a full-year basis, I think we are very, very optimistic. Coming on the combined ratio guidance, are we changing or revising or giving any new guidance? I think we are still on the guidance part. Given a complete perspective, if the industry continues to deteriorate, our own belief would be that we are part of the same pond, right? You would see overall challenges, but in that scheme of things, if there is improvement status quo, you would see us probably improving. More importantly, it's the ROE part of it, which we would focus on and see what kind of returns we are able to generate. In that, we've always maintained that we want to achieve at least a 16-20% kind of range for us as a company being given to stakeholders. Lastly, on the bookkeeping of the other income on the non-operating reserves, it seems to be very high. Is it something regrouping or picking those? Yeah. Nothing specific, Neeraj, but it is business as usual for us. They will all be driven by whatever the regulatory stipulations are. No specific changes per se. Thank you. Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. I would now like to hand the conference over to Mr. Sanjeev Mantri for closing comments. I think great to connect with all of you. Closure of another financial year and some exciting times await. Look forward to interacting with each one of you as and when your time permits. We do believe that the general insurance industry is poised for a decent year going forward, and we would keep in touch and keep you updated. Thank you so much for joining in, and all the best to each one of you. Thank you so much. Thank you. On behalf of ICICI Lombard General Insurance Company Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.