Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q1 FY24 Earnings Presentation
69 slides from Cholamandalam Financial's earnings presentation, Aug 10, 2023
Slide 1: Cover letter to stock exchanges: Presentation to Analyst / Investor
August 10, 2023 The Manager The Secretary Listing Department BSE Limited, National Stock Exchange of India Ltd 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor Dalal Street, Fort, Plot No.C-1, Block G Mumbai 400 001 Bandra-Kurla Complex Bandra (E) Mumbai 400 051 Symbol : CHOLAHLDNG S
Slide 2: Corporate Presentation – Q1-FY24
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q1-FY24 1
Slide 3: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 123 Years of $9.0 $35.9 Turnover cap (as on 30th Years Existence B B (FY23) Jun 2023) Listed 3 Sectors 29 Businesses 10 Companies 50 Geographical 113 Manufacturing 73,000+ Work force Countries Presence Locations Locations 2
Slide 4: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 36,090 84,048 1,10,827 Turnover (Cr.) 35,171 19,032 19,124 PAT(Cr.) 1,541 1,739 2,917 Market Cap(Cr.) 27,877 8,213 22,749 61,299 93,877 NA 16,950 Turnover (Cr.) 29,587 5,584 4,601 14,431 12,884 6,156
Slide 5: Spirit of Murugappa
SPIRIT OF MURUGAPPA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 4
Slide 6: Cholamandalam Financial Holdings Limited (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 45.35% 60.00% 49.50% Cholamandalam Cholamandalam MS Investment and Cholamandalam MS General Insurance Risk Services Limited Finance Company Company Limited Limited (CIFCL) (CMSRSL) (CMSGICL) • Subsidiary (as per Ind AS) • Join
Slide 7: Shareholding Pattern
Shareholding Pattern Shareholding Pattern Institutional Holders (More than 1%) as of June 30, 2023 Top Domestic Institutional Holdings * ICICI Mutul Fund 14.70% * Aditya Birla Mutul Fund * HDFC Mutul Fund 11.18% * Nippon India Mutual Fund 48.40% * Sundaram Mutul Fund * Axis Mutul Fund 25.72% Top For
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax EPS (Rs.) Q1 FY24 5,715 792 19.78 44% 36% 39% Q1 FY23 3,963 582 14.25 7
Slide 9: Performance Highlights - Consolidated
Performance Highlights - Consolidated Profit After Tax (Rs.in crs) 792 710 562 582 81 20 0 1 CIFCL CMSGICL OTHERS CFHL CONSOL Q1 FY24 Q1 FY23 8
Slide 10: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone CIFCL Q1 FY24 Q1 FY23 Particulars (Rs. in Cr) Q1 FY24 Q1 FY23 Disbursements (Rs. in Cr) 20,015 13,329 As of As of Income 2.58 2.10 30-Jun-2023 31-Mar-2023 Expenses 1.55 2.36 AUM (Rs. in Cr) 1,22,755 1,12,782 Profit Before Tax 1.03 (0.26) No.of Branch
Slide 11: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars June 30, 2023 March 31, 2023 Owned Funds (A) 1,227.38 1,226.02 Adjusted Networth (B) 16,681.03 14,387.29 Risk Weighed Assets ( C) 1,281.54 1,280.89 Outside Liabilities (D) 52.72 52.39 Net assets (E) 1,280.78 1,280.23 Investment in equity share
Slide 12: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 13: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) * 66,532 2% 13,703 6% 7% 16% 23% 5% 21% 14% 3,830 16% 5% 6% 15% 7% 9,299 14% * 35,490 13% * 26,043 1,896 2,618 624 5,536 1,542 78% 3,627 * 20,015 72% 39,699 60% 64% * 13,329 4,581 57% 2,121 1,454 25,439 611 2,679 20,249 2,036 8,562 11,301 FY21 FY22
Slide 14: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,14,796 * 1,06,498 11,337 1% 2% 9,521 4% 9,528 6% 9% 10% 7% 7% 8,451 8% * 81,925 8% 21% * 76,907 22,866 22% 22% 2,937 * 69,996 1,642 21,588 20% 20% 5,938 458 5,590 4,345 17,675 16,795 14,777 71
Slide 15: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *15,027 *15,027 2666 165 165 *12,316 *11,708 2147 164 164 *9,560 164 1515 14,862 14,862 11,543 12,152 9,396 726 566 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Reserves and Surplus Equity Share Capital 14
Slide 16: Chola – Stage 3 Assets Trend
Chola –Stage 3 Assets Trend As per revised RBI norms GNPA% & NNPA% as of Jun23 is at 4.30% and 2.82% respectively. 15
Slide 17: Vehicle Finance
Vehicle Finance Primary Colours 16
Slide 18: Vehicle Finance: Q1 FY24 Performance
Vehicle Finance: Q1 FY24 Performance • Disbursements grew by 32% in Q1 FY24 to Rs.11,301 Cr as Disbursements compared to Rs.8,562 Cr in Q1 FY23. Assets under • AUM have grown by 28% YoY. management Loss and • Loan losses dropped to 1.5% in Q1 FY24 from 2.1% in Q1 FY23. provisions Profit before tax •
Slide 19: Sector outlook – Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Light commercial vehicle segment witnessed ▪ Increased demand for Light commercial vehicle will flat growth in Q1 FY’24, this is due to the high help us garner higher volumes, we will continue to base effect of the
Slide 20: Sector outlook – Vehicle Finance business (2/3)
Sector outlook – Vehicle Finance business (2/3) Sector Outlook Chola’s Position ▪ The Passenger vehicle (Car & MUV) segment ▪ Our focus continues to be on retail customers had a growth of 10% in Q1 FY’24 with an all-time especially in smaller towns and rural areas. We high sales in the first quarter
Slide 21: Sector outlook – Vehicle Finance business (3/3)
Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position ▪ The Construction Equipment segment had a ▪ Our exposure in this segment is around growth of 14% in Q1 FY’24 supported by 7% at a portfolio level with emphasis on improvement in construction, mining activities building
Slide 22: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 (in Units) Chola 4 year (in Units) year CAGR Chola YoY growth rate -11% Chola YoY growth rate 14% CAGR 46% 40% 67266 177330 CAGR @ 10% 52705 CAGR @ 5% 43065 110108 109939 25134 54037 20526 7355 Q1 FY21 Q1 FY22 Q1 F
Slide 23: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) Chola 4 Chola YoY growth rate 22% Chola 4 year Chola YoY growth rate -3% year CAGR (in Units) CAGR 122% 50% 98360 1467329 CAGR @ 10% CAGR @ 10% 61634 998382 61074 911096 647848 25053 153861 3628 Q1 FY21 Q1
Slide 24: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning CV PV Low Industry Low Low Industry Low Chola Position Chola Position Principal Operator Salaried > 50 Vehicles Large Operators 26- 50 vehicles HCV Self Employed with Returns Returns Financials RISK RISK Medium Operators 10 -25 – HCV & LCV vehicles Taxi a
Slide 25: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning Tractor CE Low Industry Low Low Industry Low Chola Position Super Strategic Chola Position Large Farmer Strategic Customer Captive Users / Prior Vehicles Captive Users/Prior Vehicles Returns Returns Medium Retail operator RISK RISK Medium Farmers Small Re
Slide 26: Vehicle Finance - Disbursement/Portfolio Mix – Q1 FY24
Vehicle Finance - Disbursement/Portfolio Mix – Q1 FY24 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadra and Dadar and Nagar Haveli Nagar & Daman and Haveli & MP Diu AP Daman MPand Diu AP Karnataka 0.04% Karnataka Maharashtra 0.04% Maharashtra 6% Kerala Kerala
Slide 27: Vehicle Finance - Disbursement/Portfolio Mix – Q1 FY24
Vehicle Finance - Disbursement/Portfolio Mix – Q1 FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler HCV 3 Wheeler HCV CE 1% CE 7% 5% 0.3% 6% 6% LCV 2 Wheeler 17% 2 Wheeler 6% 9% LCV 21% MUV 9% Used Vehicles MUV 27% Used Vehicles 9% CAR 32%
Slide 28: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 12,190 * 11,301 6% 6% 7% 7% 6% 882 * 10,446 653 6% 6% 5% 5% 1,053 9% 584 687 19% 19% 17% 17% 560 * 8,562 * 8,502 2,211 1,936 18% Yield Low 502 468 1,816 9% 9% 556 479 9% 9% 1,077 1,0
Slide 29: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 6% 6% 7% 7% 7% * 71,065 * 66,938 7% 7% 7% 7% 7% 4,721 * 61,285 4,487 4,878 * 57,606 21% 21% 21% 21% 21% 4,742 Medium Yield Low Yield * 55,376 3,990 3,666 4,126 3,557 14,814 4,015 14,032 4,000 8
Slide 30: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *71,065 39,699 * 66,938 146 215 *55,376 *52,881 *50,415 547 693 25,439 1,479 20,249 70,918 66,723 52,187 54,829 48,937 11,301 8,562 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY
Slide 31: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 2,272 8,851 2,054 7,721 7,440 1,287 2,498 2,013 480 501 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 30
Slide 32: Loan Against Property
Loan Against Property ary Colours 31
Slide 33: Loan Against Property – Q1 FY24 Performance
Loan Against Property – Q1 FY24 Performance • Disbursements grew by 32% in Q1 FY24 to Rs.2,679 Cr as Disbursements compared to Rs.2,036 Cr in Q1 FY23. Asset under • AUM grew by 29% YoY. management Loss and provisions • Loan losses dropped to -0.14% in Q1 FY24 from -0.09% in Q1 FY23. Profit before ta
Slide 34: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL estimates the LAP segment to experience growth • Chola’s LAP team is currently focusing on at a rate of 10-12% for FY24, on back of favorable increasing its market share backed by consistent economic conditions and grad
Slide 35: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 22,866 * 21,588 1,030 9,299 1,114 * 16,795 * 17,675 1,418 * 14,777 1,544 2,062 5,536 21,836 20,474 3,627 15,250 16,257 12,716 2,679 2,036 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23
Slide 36: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 2,292 759 1,807 1,642 469 306 704 224 200 503 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 35
Slide 37: Home Loans
Home Loans Primary Colours 36
Slide 38: Home Loans – Q1 FY24 Performance
Home Loans – Q1 FY24 Performance • Disbursements grew by 138% in Q1 FY24 to Rs.1,454 Cr as Disbursements compared to Rs.611 Cr in Q1 FY23. Asset under • AUM have grown by 60% YoY. management Loss and provisions • Loan losses dropped to -0.1% in Q1 FY24 from 0.4% of Q1 FY23. Profit before tax • PBT g
Slide 39: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position • The overall growth in HFCs is expected to remain at • Chola continues to diversify its geographical mix 12-14% in FY24; Impact of excess rainfall in parts of through expanding presence in the North, East & West the country could impact
Slide 40: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *9,528 3,830 413 *8,451 433 *5,938 *5,590 500 527 *4,345 1,896 9,115 620 8,018 138% 1,454 5,063 5,438 1,542 3,726 611 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 On Book Assigned
Slide 41: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 971 321 692 222 519 344 112 85 87 204 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 40
Slide 42: Funding Profile
Funding Profile <&} Chola aXe 41 Murugappa Financial Holdings
Slide 43: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.62 19.07 17.13 17.44 5.41 3.93 3.13 2.35 2.30 15.28 15.14 16.49 14.78 15.14 FY20 FY21 FY22 FY23 Q1 FY24 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Car
Slide 44: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 73,929 * 79,321 * 89,305 * 97,356 * 1,08,140 4% 4% 7% 6% 6% 2% 3% 2% 3% 3% 7% 6% 9% 10% 4% 5% 15% 2% 2% 4% 4% 4% 4% 3% 17% 18% 4% 18% 16% 15% 58% 58% 52% 54% 49% 5% 5% 4% 5% 5% Q1 FY23 Q2 FY23 Q3 FY23 Q4FY23 Q1FY24 Tier I
Slide 45: Diversified Borrowings Profile (II/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 73,929 * 79,321 * 89,305 * 97,356 * 1,08,140 6% 7% 9% 10% 3% 15% 2% 3% 3% 1% 3% 3% 4% 1% 1% 3% 3% 3% 1% 3% 66% 66% 64% 65% 61% 1% 1% 1% 5% 6% 1% 1% 5% 6% 6% 11% 9% 10% 8% 7% 4% 3% 3% 3% 3% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1
Slide 46: ALM Statement as of 30th Jun 2023 (As per IND AS)
ALM Statement as of 30th Jun 2023 (As per IND AS) (₹Cr) ALM snapshot as on 30th Jun 2023 Particulars 1m >1 to 2m >2 to 3m >3 to 6m >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 yr Total Cash & Bank Balances 4,792.32 0.13 2,274.97 0.02 - - - 1.24 7,068.68 Advances 3,922.79 3,642.08 2,768.83 10,532.27 17,093.7
Slide 47: Cholamandalam MS General Insurance Company Limited
Cholamandalam MS General Insurance Company Limited Financial data in this section is as per IGAAP 46
Slide 48: Chola MS General Insurance: Brief Overview
Chola MS General Insurance: Brief Overview Murugappa Group Mitsui Sumitomo Insurance, Japan ◼ Murugappa Group - India's leading business ◼ Mitsui Sumitomo Insurance - part of MS&AD – one of conglomerate the largest insurance group in the world. ◼ Founded in 1900, Headquartered in Chennai, the INR 74
Slide 49: Key Financial Parameters (Rs. Crs)
Key Financial Parameters (Rs. Crs) Particulars – In Rs. Cr FY’21 FY'22 FY'23 Q1 FY'23 Q1 FY'24 Gross Written Premium$ 4400 4854 6200 1300 1701 Growth -0.2% 10.3% 27.6% 43.3% 30.8% NWP 3357 3572 4610 933 1224 NEP 3202 3437 4019 921 1172 U/W Results -287 -433 -601 -142 -171 Investment income (Net) 662
Slide 50: LOB Wise - Quarterly Growth Trends of Multi-line Insurers
LOB Wise - Quarterly Growth Trends of Multi-line Insurers Other Particulars Months Fire Comml Motor Health PA Crop Others Total Lines In Q1, Chola MS Apr'23 7.1% 19.8% 23.0% 21.1% 36.0% 133.7% 21.2% 18.8% May'23 5.9% -3.3% 23.2% 19.9% 29.2% 30.2% 19.2% 17.4% • Overall growth Industry Jun'23 2.8% 2.7
Slide 51: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth Q1 FY’24 Solid GDPI* growth over years (CAGR FY2016 - FY 2023 = 14.1% (With Crop); 15.0% (Without Crop) Rs In Crs Growing 6156 Market Share 4429 4398 4388 4824 4103 3133 2452 6158 2313 2851 3602 3992 4379 4386 4824 1681 5.8% 139 282 501 437
Slide 52: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) FY’22 Excluding exceptional item RoNW @ 9.13% 700 0 Includes RI Inwards 6200 50. 0% # 600 0 43.3% 45. 0% 14.9% 4854 30.8% 40. 0% 500 0 4400 26.7% 35. 0% 9.2% 30. 0% 400 0 25. 0% 300 0 10.3% 1701 20. 0% * 3.9% 15. 0% 200 0 13
Slide 53: Constantly improving operating metrics
Constantly improving operating metrics Particulars 2020-21 2021-22 2022-23 Q1 FY’24 Number of Customers (Live Customer) No in Lacs 165 254 336 363 Number of policies issued No in Lacs 63 99 121 29 Market Presence(Branch + CIE + VO) No’s 593 638 604 599 Bank Branches No’s 37000+ 34000+ 34000+ 35000+
Slide 54: Claims Ratio (%)
Claims Ratio (%) Line of Business FY’21 FY'22 FY'23 Q1 FY'23 Q1 FY'24 Motor OD 57.0% 69.8% 71.7% 75.8% 74.9% Motor TP 79.7% 63.4%* 77.0%# 77.6% 77.2% Motor Total 74.3% 65.1% 75.6% 77.1% 76.5% Health, Travel & PA 77.2% 117.1% 66.6% 55.1% 64.3% Health, Travel & PA (w/o Covid) 46.9% 73.2% 66.6% 55.1% 6
Slide 55: Investment Book Overview (Rs. Crs)
Investment Book Overview (Rs. Crs) Catogery Mar-21 Mar-22 Mar-23 Jun-23 Govt Securities 7663 8290 9579 9429 PSU / Corporate Bonds 2254 2834 4484 4915 Equity 76 151 321 404 Others 1041 1229 299 331 Grand Total (@ cost) 11034 12504 14683 15079 Yield with profit on sale 7.59% 6.81% 6.54% 6.71% Yield wi
Slide 56: Dominance in Motor, Diversification Underway
Dominance in Motor, Diversification Underway Motor Market Share (Largest GI Segment) Strategized diversification across Motor eco-system GI Market Share by GWP 74.3% 83.0% 74.3% 61.1% 75.3% 76.5% 5.8% 2.3% 4.6% 4.9% 5.3% 4.7% 4.7% 10.1% 16.4% 16.3% 23.1% 19.6% 75.6% 44.6% 41.6% 67.9% 58.2% 47.6% 35.
Slide 57: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment 9.4% 8.9% 9.5% 10.8% 13.0% 13.3% 13.6% 16.3% 6.3% 6.8% 6.3% 6.9% 71.2% 71.0% 70.6% 66.0% FY'21 FY'22 FY'23 Q1 FY'24 Motor PA & Others Crop Commercial Health ▪ Focus on Commercial business (including SME business) has helped raise the share of t
Slide 58: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs 363 336 Commercial 254 21.8% 165 Retail 78.2% FY'21 FY'22 FY'23 Q1 FY'24 Significant growth in retail oriented policies Geographic Presence – Mix % # of
Slide 59: Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream
Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream Channel wise Mix% 8.0% 6.5% 6.3% 5.1% 6.0% 4.4% 5.2% 5.1% 5.4% 6.7% 20.9% 25.0% 32.5% 40.4% 43.2% 34.1% 35.9% 34.9% 31.1% 28.9% 32.6% 27.5% 21.2% 18.1% 15.2% FY'20 FY'21 FY'22 FY'23 Q1 FY'24 Banks Corporate Agent Captive* Br
Slide 60: Balanced Revenue Mix: Stable in-house + Growth Channels
Balanced Revenue Mix: Stable in-house + Growth Channels Captive Channel Other Tied Channels PSU Banks + New Bank Tie ups (CIE + Chola Finance + Coromandel) (IBL, NBFC, OEM) 28.9% of Q1 FY’24 GWP 9.4% of Q1 FY’24 GWP 34.1% of Q1 FY’24 GWP GWP Rs In Crs GWP Rs In Crs GWP Rs In Crs 662 2325 1913 1575 1
Slide 61: Tech Enablers across the value chain
Tech Enablers across the value chain of functionalities to enable better user experience and productivity Products & Services Scalable Platforms • ~94% of monthly policy issuance is • Microservices based platform • Health sourcing platform with through system integrated channels for transactions at
Slide 62: Glimpse of new Tech & Digital Capabilities across the value chain
Glimpse of new Tech & Digital Capabilities across the value chain leading to superior partner and customer experiences Distribution build Sales fulfilment Underwriting Tailor UW OCR Phoenix Tele UW 100% 100% 2 min 75% 100% Digital Onboarding Policy issuance Instant policy STP issuance Digitization o
Slide 63: Indian General Insurance: Large addressable market
Indian General Insurance: - Large addressable market Significantly underpenetrated Premium as a % GDP Non-Life Insurance Density (Premium per capital) (CY22) (US$) (CY22) (US$) 9.0 6868 5.8 2.4 2.3 2.2 1.9 1.9 1836 1.0 1111 748 0.6 0.5 234 168 149 87 26 22 Russia China Indonesia Brazil UK India USA
Slide 64: Industry has Witnessed Strong Growth Over the last 15 Years
Industry has Witnessed Strong Growth Over the last 15 Years General Insurance Gross Premium has grown >10x over the last 15 years Growth of (Rs In Cr) CAGR (Last 15 Years) = 14.9% 17.9% over Q1 FY’23 256912 220772 189302 198724 170036 150572 128213 96394 69086 77541 84686 64232 38400 47355 58357 160
Slide 65: Motor & Retail Health are the Largest GI Segment
Motor & Retail Health are the Largest GI Segment and Continue to Grow at Steady Pace Motor accounts for 43.6% share of the overall GWP Motor Claim ratio for Private General Insurers (single largest segment) (Private Motor Insurance– GWP Rs in Crs (Private Motor Insurance– Claims Ratio) CAGR: 14% 83%
Slide 66: Favorable Regulations Aiding Growth
Favorable Regulations Aiding Growth Amendment to Acts expected to improve profitability and growth across segments Growth Oriented Requiring Tweaks Impending Mandatory Long term Third Party Insurance Crop Insurance Courts’ recognition of amended MV Act PMFBY financially supports Claim initiation
Slide 67: Contact us
Contact us Cholamandalam Financial Holdings Limited (CFHL), Dare House, No. 234, NSC Bose Road, Parrys, Our registered Chennai 600001. office Land Line: 044–40907638 http://www.cholafhl.com Email-ID Krithika E - Company Secretary–krithikae@cfhl.murugappa.com 66
Slide 68: Disclaimer
Disclaimer • Certain statements included in this presentation may be forward looking statements made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Financial Holdings Ltd and its subsidiaries. There can be no assur
Slide 69: Thank You
Thank You <> Chola 2% Financial Holdings murugappa
Cholamandalam Financial Holdings — Q1 FY24 Earnings Presentation on 6ix