Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q4 FY22 Earnings Presentation
71 slides from Cholamandalam Financial's earnings presentation, May 13, 2022
Slide 1: Presentation to Analyst / Investor cover letter
May 13, 2022 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 Scri
Slide 2: Corporate Presentation – Q4-FY22
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q4-FY22 1
Slide 3: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 121 Years of $4.2 $18.3 Turnover cap (as on 31st Years Existence B B (FY21) Mar 2022) Listed 3 Sectors 29 Businesses 10 Companies 19 Geographical 90+ Manufacturing 51,000+ Work force Countries Presence Locations Locations 2
Slide 4: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 36,105 45,748 70,852 Turnover (Cr.) 18,545 8,432 14,030 PAT(Cr.) 2,020 589 1,824 Market Cap(Cr.) 26,711 9,384 14,488 31,260 58,978 NA 11,875 Turnover (Cr.) 14,145 4,400 2,604 5,827 9,584 4,388 58 PAT(
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) 45.41% 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 March 31, 2022 Top Domestic Institutional Holdings * ICICI Mutul Fund 11.66% * Aditya Birla Mutul Fund * HDFC Mutul Fund 14.68% 48.62% * Nippon India Mutual Fund * Sundaram Mutul Fund 25.04% Top Foreign Institutiona
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax EPS (Rs.) Q4 FY22 3,794 687 16.23 2% 19% 17% Q4 FY21 3,579 214 4.47 Rs.in Cr. Revenue Profit after tax EPS (Rs.) Networth YTD Mar-22 14735 2,239 54.50 Mar-22 13,629 6% 27% 24% 20% YTD Mar-21 13,961 1,764 43.93 Mar-21 11,359 7
Slide 9: Performance Highlights - Consolidated Profit After Tax
Performance Highlights - Consolidated 2,239 PROFIT AFTER TAX 2,300 Q1 FY22 Q1 FY22 102 Q1 FY21 2,100 1,764 1,900 1,700 276 1,500 1,300 1,100 2,154 900 686 700 1,514 17 500 214 300 681 100 238 -100 -17 -26 -12 -8 -16 -300 YTD Mar-22 YTD Mar-21 Q4 FY22 Q4 FY21 CIFCL CMSGICL Others 8
Slide 10: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone Particulars (Rs. in Cr) YTD Mar-22 YTD Mar-21 CIFCL YTD Mar-22 YTD Mar-21 Income 84 58 Disbursements (Rs. in Cr) 35,490 26,043 As of As of Expenses 13 24 31-Mar-2022 31-Mar-2021 Profit Before Tax 71 34 AUM (Rs. in Cr) 82,904 76,518 Tax Expense 15 12
Slide 11: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars March 31, 2022 March 31, 2021 Owned Funds (A) 1,187.17 1,140.74 Adjusted Networth (B) 12,072.86 8,008.86 Risk Weighed Assets ( C) 1,280.57 1,279.38 Outside Liabilities (D) 103.73 162.19 Net assets (E) 1,279.89 1,279.35 Investment in equity sha
Slide 12: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 13: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) * 35,490 2,618 * 30,451 1,571 3% 2% 2% 2% * 29,091 2% 5% 7% 474 4% 6% 1,157 537 13% 13% 4% 1,505 * 26,043 5,862 13% 14% * 25,114 3,837 624 17% 726 3,662 1,542 606 3,174 3,627 25,439 82% 82% 80% 78% 24,983 72% 23,387 20,607 20,249 FY18 FY19 FY20 FY2
Slide 14: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 76,907 1,642 * 69,996 458 5,269 4,345 * 60,549 1% 0% 0% 1% 2% 258 17,115 2% 4% 5% 6% * 54,279 3,125 7% 14,777 135 24% 21% 1,912 21% 21% 12,960 22% * 42,924 11,626 377 978 10,097 50,415 52,881 73
Slide 15: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *11,708 164 2147 *9,560 164 *8,172 164 1515 *6,176 *5,098 156 11,543 1186 1052 156 9,396 918 8,008 6,019 4,942 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Reserves and Surplus Equity Share Capital * Total Networth 14
Slide 16: Stage 3 Assets Trend
Stage 3 Assets Trend As per revised RBI norms GNPA% & NNPA% as of March’22 is at 6.82% and 4.85% respectively. 15
Slide 17: Vehicle Finance
Vehicle Finance Primary Colours 16
Slide 18: Vehicle Finance: Q4FY22 & FY22 Performance
Vehicle Finance: Q4FY22 & FY22 Performance • Disbursements grew by 43% in Q4FY22 at Rs.8785 crores as Disbursements compared to Rs.6153 crores in Q4FY21 and by 26% at Rs.25439 crores in FY22 as compared to Rs.20249 crores in FY 21. Assets under management • AUM have grown by 5% YoY Loss and • Loan l
Slide 19: Sector outlook – Vehicle Finance business (1/1)
Sector outlook – Vehicle Finance business (1/1) Chola’s Position Sector Outlook ▪ Increased demand for Light commercial vehicle will ▪ The Light commercial vehicle segment had a growth of help us garner higher market share due to our 14% in Q4 FY’22 & 15% for the full year. This segment presence in
Slide 20: Sector outlook – Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position ▪ The Passenger vehicle (Car & MUV) segment had a ▪ Our focus continues to be on retail customers marginal de-growth of 1% in Q4 FY’22 & a growth of especially in smaller towns and rural areas. We will 14% for the full y
Slide 21: Sector outlook – Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Construction Equipment segment had a de- ▪ Our exposure in this segment is around 6% at a growth of 17% in Q4 FY’22 & 8% for the full year portfolio level and our focus will be on building due to increasing cost of
Slide 22: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) 2,73,844 Chola @ 14% 4,61,213 4,74,012 Chola @ 19% 2,31,702 15% 3,58,750 1,92,947 3,37,684 1,76,381 2,94,324 1,43,869 YTD Mar'19 YTD Mar'20 YTD Mar'21 YTD Mar'22 YTD Mar'26 (E) YTD Mar'19 YTD Mar'20 Y
Slide 23: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) 3,19,383 (in Units) 2,95,394 Chola @ 85% Chola @10% 43,70,071 14% 1,97,641 33,54,249 CAGR @ 10% 30,82,105 1,65,256 27,74,159 27,13,470 1,28,353 YTD Mar'19 YTD Mar'20 YTD Mar'21 YTD Mar'22 YTD Mar'26 (E) YT
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 Principal Operator Operator Principal > 50 Vehicles Salaried Salaried > 50 Vehicles Operator > 50 Vehicles Large Large Operators Operators 26- 26- 5050 vehicles vehicles HCV H
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 Large Farmer Strategic Farmer Customer Captive Captive Users Users / Prior / Prior Vehicles Vehicles Captive Captive Users/Prior Users/Prior Vehicles Vehicles
Slide 26: Vehicle Finance - Disbursement/Portfolio Mix – Q4FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q4FY22 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra Kerala 6% 6% Kerala 6% 5% 6% Puducherry 6% 10% Gujarat 10% Puducherry 5% Telangana 4% Gujarat 0% 0% Telang
Slide 27: Vehicle Finance - Disbursement/Portfolio Mix – Q4FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q4FY22 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler HCV 3 Wheeler HCV CE CE 1% 8% 0.3% 9% 6% 6% 2 Wheeler 2 Wheeler 6% 4% LCV 18% LCV 21% MUV Used Vehicles 7% 27% Used Vehicles MUV 36% 7%
Slide 28: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 8,785 572 * 7,647 664 8% 6% 6% 6% 7% 447 333 5% 5% 4% 8% 1,579 7% * 6,153 * 6,161 1,332 18% 19% 17% 18% Yield 397 Low 504 20% 279 590 413 7% 569 8% 8% 1,158 838 7% 6% 10% 1,231 776 1
Slide 29: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 52,881 * 50,415 * 50,675 6% 6% 6% 6% 6% Low Yield * 48,403 * 49,285 3,395 3,069 3,189 9% 9% 9% 8% 7% 2,982 3,083 3,914 4,882 3,937 4,560 4,313 21% 21% 21% 21% 21% 10,995 Medium Yield 10,472 1
Slide 30: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *52,881 24,983 25,439 *50,415 693 23,387 1,479 *44,206 20,607 20,249 *40,606 2,056 *31,473 52,187 48,937 40,606 42,150 31,473 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 On Book Assignm
Slide 31: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 7,721 7,440 60% 2,054 6,624 5,485 1,269 1,287 4,241 988 945 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 30
Slide 32: Loan Against Property
Loan Against Property ary Colours 31
Slide 33: Loan Against Property – Q4FY22 & FY22 Performance
Loan Against Property – Q4FY22 & FY22 Performance • Disbursements grew by 66% in Q4FY22 at Rs.1978 crores as compared to Disbursements Rs.1191 crores in Q4FY21 and by 62% at Rs.5862 crores in FY22 as compared to Rs.3627 crores in FY 21. Asset under • AUM have grown by 16% YoY. management • Loan loss
Slide 34: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • The NBFC sector would begin the year with sufficient • On back of improved economic activities, capital and provisions with stable margins and the Business has witnessed increased demand for expected YoY loan growth of around
Slide 35: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 62% * 17,115 5,862 * 14,777 1,544 * 12,960 2,062 * 11,626 * 10,095 2,425 3,837 1,671 3,662 3,627 671 3,174 15,571 12,716 9,954 10,536 9,424 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21
Slide 36: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,827 1,642 475 1,479 1,248 1,184 305 306 244 221 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 35
Slide 37: Home Loans
Home Loans Primary Colours 36
Slide 38: Home Loans – Q4FY22 & FY22 Performance
Home Loans – Q4FY22 & FY22 Performance • Disbursements stood at Rs.441 crores in Q4FY22 as compared to Rs.538 Disbursements crores in Q4FY21 and grew by 2% at Rs.1571 crores in FY22 as compared to Rs.1542 crores in FY 21. Asset under • AUM have grown by 21% YoY. management • Loan losses improved to
Slide 39: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position • Revival of demand in Q4 FY22 is expected to • Chola’s exposure is majorly into self- sustain in FY23. construction residential houses • As cash flows of micro and small businesses • Chola doesn’t have focus on developer supplied continu
Slide 40: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *5,269 527 1,542 1,571 *4,345 1,505 620 1,157 *3,125 677 4,742 *1,912 3,726 606 *978 2,449 1,912 978 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 On Book Assigned * Total AUM 39
Slide 41: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 671 215 519 357 112 189 64 101 38 7 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 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 18.36 19.07 17.36 5.41 3.93 3.13 5.12 4.92 15.28 15.14 16.49 13.24 12.44 FY18 FY19 FY20 FY21 FY22 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care I
Slide 44: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by instrument type * 55,005 * 63,730 * 63,197 * 62,309 * 65,806 * 69,174 3% 4% 5% 4% 3% 7% 7% 3% 2% 2% 2% 2% 8% 6% 5% 5% 7% 6% 6% 5% 6% 6% 7% 2% 3% 7% 3% 3% 2% 2% 10% 15% 14% 14% 15% 14% 60% 55% 58% 55% 57% 61% 8% 7% 6% 7% 6% 6% Mar-20 Mar-21 Q1FY2
Slide 45: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 55,005 * 63,730 * 63,197 * 62,309 * 65,806 * 69,174 8% 7% 6% 6% 5% 5% 2% 2% 4% 2% 3% 2% 1% 2% 2% 2% 4% 2% 5% 6% 6% 6% 4% 7% 66% 66% 69% 67% 63% 68% 3% 1% 1% 1% 4% 4% 1% 1% 4% 4% 4% 5% 11% 9% 8% 11% 9% 5% 2% 2% 3% 2% 3% 3% M
Slide 46: ALM Statement as of 31st Mar 2022 (As per IND AS)
ALM Statement as of 31st Mar 2022 (As per IND AS) (₹Cr) ALM snapshot as on 31st Mar 2022 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 2,002.65 - 2,036.36 37.22 48.57 194.28 194.28 827.78 5,341.12 Advances 2,232.44 2,285.63 2,047.75 7,64
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: Profit and Loss (Rs. Crs)
Profit and Loss (Rs. Crs) Particulars – In Rs. Cr FY'20 FY’21 FY'22 Q4 FY'21 Q4 FY'22 Gross Written Premium 4398 4388 4824 1270 1382 Growth -0.7% -0.2% 9.9% 4.6% 8.8% NEP 3437 3202 3437 819 871 U/W Results -247 -287 -433 -118 -118 Investment income (Net of other expenses) 502 662 539 179 142 *PBT 25
Slide 49: LOB Wise - Quarterly Growth Trends
LOB Wise - Quarterly Growth Trends LOB Wise - Monthly Growth Trends Other Particulars Months Fire Comml Motor Health PA Crop Others Total Lines Chola MS Q1 FY'22 4.1% 30.2% 3.1% 24.9% 42.4% -56.1% 6.0% 11.1% Q2 FY'22 14.0% 20.4% 6.3% 27.5% 56.4% -9.9% 8.9% 10.7% Industry Q3 FY'22 8.8% 28.8% 1.8% 26.
Slide 50: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth FY’22 Solid GWP growth over years (CAGR FY2016 - FY 2022 = 11.9% (With Crop); 13.0% (Without Crop) Rs In Crs 8th Largest Private Insurer 4429 4398 4388 4824 by GWP 4103 3133 2452 3602 3992 4379 4386 4824 2313 2851 139 282 501 437 19 2 0 FY'1
Slide 51: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) 9.9% # 600 0 12. 0% 4824 8.8% 500 0 4398 4388 10. 0% 14.9% 8.0 % 400 0 4.6% 6.0 % 9.3% 300 0 4.0 % * 3.9% # 200 0 1270 1382 2.4% * 0.8% -0.2% 2.0 % 100 0 -0.7% 0.0 % 0 -2.0% FY'20 FY'21 FY'22 Q4 FY'21 Q4 FY'22 FY'20 FY'21 FY
Slide 52: Constantly improving operating metrics
Constantly improving operating metrics Particulars 2018-19 2019-20 2020-21 2021-22 Number of Customers (Live Customer) No in Lacs 100 141 165 254 Number of policies issued No in Lacs 29 45 63 99 Market Presence(Branch + CIE + VO) No’s 559 645 593 640 PSB Branches* No’s 19000+ 41000+ 37000+ 34000+ Mo
Slide 53: Loss Ratio (%)
Loss Ratio (%) Line of Business FY2020 FY2021 FY2022 Q4 FY'21 Q4 FY'22 Motor OD 61.9% 57.0% 69.8% 78.1% 82.8% Motor TP 90.7% 79.7% 63.4% 70.7% 66.6% Health, Travel & PA 40.8% 77.2% 117.1% 95.0% 78.9% Health, Travel & PA (w/o Covid) 40.8% 47.5% 75.9% 69.3% 77.7% Fire 42.3% 33.8% 33.5% 14.4% -1.7% Mar
Slide 54: Investment Book Overview (Rs. Crs)
Investment Book Overview (Rs. Crs) Catogery Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 C Govt Sec 2623 4155 5165 28.1% 37.7% 41.3% S Govt Sec 3693 3508 3125 39.6% 31.8% 25.0% Housing sector 620 955 1036 6.6% 8.7% 8.3% Infra sector* 688 771 1533 7.4% 7.0% 12.3% Approved - Other Corp Bonds 787 396 240
Slide 55: 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 82.9% 74.3% 65.1% 72.4% 70.8% 10.1% 16.4% 17.5% 23.1% 23.3% 4.9% 22.1% 25.4% 26.9% 4.8% 4.8% 29.3% 29.2% 4.7% 4.6% 67.9% 58.2% 47.6% 55.6% 4
Slide 56: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment 0.4% 0.0% 0.0% 0.1% 0.0% 7.7% 6.3% 6.7% 5.8% 7.2% 7.2% 9.4% 9.0% 6.7% 9.0% 10.9% 13.0% 13.4% 13.4% 13.0% 73.8% 71.2% 70.9% 73.9% 70.8% FY'20 FY'21 FY'22 Q4 FY'21 Q4 FY'22 Motor Commercial Health PA & Others Crop ▪ Focus on Commercial business (
Slide 57: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs Commercial 254 9.1% 165 141 100 100 Retail 57 67 90.9% FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 Significant growth in retail oriented policies Geograph
Slide 58: Multi-channel model ensures lesser concentration / diversified revenue stream
Multi-channel model ensures lesser concentration / & diversified revenue Stream Channel wise Mix% Corporate Agent Captive* 0.4% 0.3% 0.4% 0.5% 3.6% 0.4% 6.7% 4.7% 4.6% 4.6% 3.6% Brokers 4.4% 5.2% 5.1% 5.2% 27.9% 22.1% Banks 21.2% 27.5% 32.6% Direct Business 32.5% 29.8% 32.7% 25.0% Corporate Agents-
Slide 59: Volumes Sustained Despite Stress in Financier Partners
Volumes Sustained Despite Stress in Financier Partners GWP Mix% 18.1% 15.8% 8.1% 11.5% 12.3% 22.8% 28.6% 30.5% 20.5% 31.9% 15.7% 14.9% 17.2% 19.2% 23.2% 45.7% 46.5% 46.1% 38.8% 32.6% FY'18 FY'19 FY'20 FY'21 FY'22 Financers OEM Agency Others* ▪ Due to economic slowdown, volumes from financiers are un
Slide 60: Balanced Revenue Mix: Stable in-house + Growth Channels
Balanced Revenue Mix: Stable in-house + Growth Channels Captive Channel Long Lasting Channel Other Tied Channels (CIE + Chola Finance + Coromandel) (IBL + Toyota) (PSU Banca, NBFC, OEM) 34.8% of 15.7% of 30.8% of FY’2022 GWP FY’2022 GWP FY’2022 GWP CAGR = 33.7% 1237 1250 1575 1681 1487 1498 925 1324
Slide 61: Tech Enablers across the value chain
Tech Enablers across the value chain Channels Platforms Service Improvement (Products & Services) (Scale, User Experience) (Productivity, Ease of use) ▪ ~93% of monthly policy issuance is ▪ Introduced Phoenix as new ▪ RPA bots enabling 25+ processes in through system integrated channels microservice
Slide 62: Glimpse of new Tech & Digital Capabilities across the value chain (1/2)
Glimpse of new Tech & Digital Capabilities across the value chain (1/2) Distribution Build Sales Fulfilment Underwriting SME Tailor UW OCR Commercial End to End Digital Health Rules Health Pre Policy Policy Issuance Assets Onboarding of agents Health Policy Engine (UW & Medical Digitization API Frau
Slide 63: Glimpse of new Tech & Digital Capabilities across the value chain (2/2)
Glimpse of new Tech & Digital Capabilities across the value chain (2/2) Claims Renewals Operations & Servicing Provider Portal NRLMS AI based proctoring Health Claim Workflow RPA for Claims, Assets Renewal Lead Finance, Operations for new hires Claims OCR AI based Motor Claim Management & Adjudicati
Slide 64: 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) (CY20) (US$) (CY20) (US$) 5754 9.00 5.20 2.50 2.40 2.30 1.90 1.80 1619 1.00 1.00 0.50 949 951 214 124 120 105 21 19 India China Indonesia Brazil UK S
Slide 65: 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 (Rs In Cr) Growth of 11.1% CAGR (Last 15 Years) = 15% over FY21 2,20,772 1,89,3021,98,724 1,70,036 1,50,572 1,28,213 96,394 58,357 69,086 77,541 84,686 38,400 47,355 16,0
Slide 66: Motor & Retail Health are the Largest GI Segment and Continue to Grow
Motor & Retail Health are the Largest GI Segment and Continue to Grow at Steady Pace Motor accounts for 38.1% share of the overall GWP Claims ratio is expected to increase for Private General Insurers (single largest segment) (Private Motor Insurance– GWP Rs in Crs (Private Motor Insurance– Claims R
Slide 67: Industry Landscape – GWP Growth for Private GI Players (5 Yr CAGR)
Industry Landscape – GWP Growth for Private GI Players (5 Yr CAGR) Growth Last 5 FY'2022 GWP Market Motor Mix Heath + PA Others Insurers over years GWP Crop Mix% Fire Mix% (Rs in Crs) Share % Mix% Mix% FY'2021 CAGR ICICI-Lombard 17977 4.7% 9.7% 17.3% 46.1% 21.7% 3.7% 15.3% 13.2% Bajaj Allianz 13689
Slide 68: Favorable Regulations Aiding Growth
Favorable Regulations Aiding Growth Amendment to Acts expected to improve profitability and growth across segments Working well Requiring Tweaks Yet to Take Off Mandatory Long term Third Party Insurance Crop Insurance TP Premium Pricing 3 years for Cars, 5 years for 2W PMFBY financially supports
Slide 69: 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 68
Slide 70: 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 71: Thank You
Thank You <> Chola 2% Financial Holdings murugappa
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