Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q4 FY23 Earnings Presentation
69 slides from Cholamandalam Financial's earnings presentation, May 13, 2023
Slide 1: Letter to stock exchanges: Presentation to Analyst / Investor
May 13, 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 Scri
Slide 2: Corporate Presentation – Q4-FY23
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q4-FY23 1
Slide 3: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 122 Years of $7.0 $27.1 Turnover cap (as on 31st Years Existence B B (FY22) Mar 2023) Listed 3 Sectors 29 Businesses 10 Companies 40 Geographical 105 Manufacturing 53,000+ Work force Countries Presence Locations Locations 2
Slide 4: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 34,147 1,13,753 72,738 Turnover (Cr.) 23,431 8,432 15,049 PAT(Cr.) 1,788 1,341 2,305 Market Cap(Cr.) 25,851 8,296 18,802 49,130 62,607 NA 10,132 Turnover (Cr.) 19,068 4,363 3,290 15350 10,141 4.824 84
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) 45.36% 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, 2023 Top Domestic Institutional Holdings * ICICI Mutul Fund 14.04% * Aditya Birla Mutul Fund * HDFC Mutul Fund 11.86% Promoters * Nippon India Mutual Fund 48.40% Mutual Funds * Sundaram Mutul Fund FPI Othe
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax EPS (Rs.) Q4 FY23 5,281 901 21.72 39% 31% 34% Q4 FY22 3,794 687 16.23 Rs.in Cr. Revenue Profit after tax EPS (Rs.) FY-23 18,376 2,810 68.72 25% 25% 23% FY-22 14,735 2,239 54.50 7
Slide 9: Performance Highlights – Consolidated
Performance Highlights – Consolidated Profit After Tax (Rs.in crs) Profit After Tax (Rs. in crs) 2,810 901 2,665 855 2,239 2,154 687 687 63 18 158 102 CIFCL CMSGICL -18 OTHERS - CFHL CONSOL CIFCL CMSGICL -14 OTHERS -17 CFHL CONSOL 18 Q4 FY23 Q4 FY22 FY-23 FY-22 8
Slide 10: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone CIFCL FY-23 FY-22 Particulars (Rs. in Cr) FY-23 FY-22 Disbursements (Rs. in Cr) 66,532 35,490 As of As of Income 84 84 31-Mar-2023 31-Mar-2022 Expenses 10 13 AUM (Rs. in Cr) 1,12,782 82,904 Profit Before Tax 74 71 No.of Branches 1,191 1,145 Tax Expen
Slide 11: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars March 31, 2023 March 31, 2022 Owned Funds (A) 1,226.02 1,187.17 Adjusted Networth (B) 14,387.29 12,072.90 Risk Weighed Assets ( C) 1,280.89 1,280.57 Outside Liabilities (D) 52.39 103.73 Net assets (E) 1,280.23 1,279.89 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 (%) * 66,532 2% 2% 2% 13,703 4% 5% 6% 7% 5% 21% 13% 13% 3,830 14% 16% 6% 9,299 * 30,451 14% * 35,490 474 2,618 * 29,091 * 26,043 1,896 1,157 537 1,505 624 5,536 3,837 82% 3,662 … 80% 78% 3,627 72% 39,699 60% 24,983 23,387 25,439 20,249 FY19 FY20 FY21 F
Slide 14: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,06,498 9,521 0% 0% 1% 4% 2% 5% 6% 9% 8,451 7% 21% 21% 8% * 76,907 21% 21,588 22% * 69,996 1,642 458 5,590 20% * 60,549 4,345 * 54,279 258 16,795 135 3,125 14,777 1,912 12,960 11,626 75% 73% 72
Slide 15: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *14,296 164 2666 *11,708 164 *9,560 2147 164 *8,172 164 *6,176 14,132 1515 156 11,543 1186 1052 9,396 8,008 6,019 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 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 Mar23 is at 4.63% and 3.11% respectively. 15
Slide 17: Vehicle Finance
Vehicle Finance Primary Colours 16
Slide 18: Vehicle Finance: Q4FY23 & FY23 Performance
Vehicle Finance: Q4FY23 & FY23 Performance • Disbursements grew by 39% in Q4FY23 to Rs.12,190 Cr as Disbursements compared to Rs.8,785 Cr in Q4FY22 and by 56% to Rs.39,699 Cr in FY23 as compared to Rs.25,439 Cr in FY22. Assets under • AUM have grown by 27% YoY. management Loss and • Loan losses at 0
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 had a ▪ Increased demand for Light commercial vehicle will growth of 13% in Q4 FY’23 & 35% in FY’23. The help us in increased share of volumes, however we segment is expected to hav
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 11% in Q4 FY’23 & an all-time especially in smaller towns and rural areas. We high sale with 27% growth in FY’23
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 21% in Q4 FY’23 & 26% in FY’23 7% at a portfolio level and our focus will supported by improvement in the overall be on buildi
Slide 22: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year Chola 4 year (in Units) CAGR Chola YoY growth rate 19% Chola YoY growth rate 43% (in Units) CAGR 7% 5,95,115 (10%) 3,10,844 4,57,481 CAGR @ 12% CAGR @ 12% 1,92,947 2,00,811 3,58,750 3,37,684 1,76,381 2,94,324
Slide 23: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales Chola 4 (in Units) year CAGR Chola YoY growth rate 50% Chola 4 year Chola YoY growth rate 84% (in Units) CAGR 13% 380541 15% 51,80,514 296501 CAGR @ 14% 38,97,220 CAGR @ 11% 30,74,383 197641 27,74,159 27,13,470 16525
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 – Q4FY23
Vehicle Finance - Disbursement/Portfolio Mix – Q4FY23 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadra and Dadra and Nagar Haveli Nagar Haveli & & Daman and MP Daman Diu AP MP and Diu AP Karnataka Karnataka 0.04% Maharashtra Maharashtra 0.04% 6% Kerala 6% 5%
Slide 27: Vehicle Finance - Disbursement/Portfolio Mix – Q4 FY23
Vehicle Finance - Disbursement/Portfolio Mix – Q4 FY23 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler 3 Wheeler HCV CE HCV CE 0.3% 1% 8% 7% 7% 7% 2 Wheeler 2 Wheeler 8% 6% LCV LCV 18% 21% Used Vehicles MUV Used Vehicles 27% 9% MUV 30% 8% CAR
Slide 28: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 12,190 882 7% 6% 6% 7% 7% * 10,446 8% 6% 6% 5% 1,053 9% 687 * 8,785 560 19% 19% 17% * 8,562 * 8,502 2,211 18% 18% Yield 572 Low 502 468 1,816 9% 664 556 479 7% 9% 9% 1,077 9% 1,579 1
Slide 29: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 66,938 6% 6% 6% 7% 7% * 61,285 4,487 * 57,606 7% 7% 7% 7% 7% * 55,376 3,990 4,742 Medium Yield Low Yield * 52,881 3,666 4,126 3,557 21% 21% 21% 21% 21% 3,395 4,015 14,032 4,000 3,914 12,810 1
Slide 30: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) * 66,938 39,699 215 *52,881 *50,415 693 *44,206 1,479 24,983 25,439 23,387 *40,606 2,056 20,249 66,723 52,187 48,937 40,606 42,150 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 On Book As
Slide 31: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 8,851 2,272 2,054 7,721 7,440 6,624 5,485 1,269 1,287 945 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 30
Slide 32: Loan Against Property
Loan Against Property ary Colours 31
Slide 33: Loan Against Property – Q4FY23 & FY23 Performance
Loan Against Property – Q4FY23 & FY23 Performance • Disbursements grew by 48% in Q4FY23 to Rs.2,762 Cr as Disbursements compared to Rs.1,870 Cr in Q4FY22 and by 68% to Rs.9,299 Cr in FY23 as compared to Rs.5,536 Cr in FY22. Asset under • AUM grew by 29% YoY. management • Loan losses at 0.5% in Q4FY2
Slide 34: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL expects MSME LAP segment to grow at 6-8% in • Chola’s LAP team is currently focusing on FY23, driven by improving economic conditions and the increasing its market share backed by consistent mild impact of the third pan
Slide 35: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 21,588 1,114 9,299 * 16,795 * 14,777 1,544 * 12,960 2,062 * 11,626 2,425 1,671 5,536 20,474 15,250 3,837 3,662 3,627 12,716 9,954 10,536 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 F
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 1,479 469 1,248 305 306 244 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 35
Slide 37: Home Loans
Home Loans Primary Colours 36
Slide 38: Home Loans – Q4FY23 & FY23 Performance
Home Loans – Q4FY23 & FY23 Performance • Disbursements grew by 156% in Q4FY23 to Rs.1,405 Cr as Disbursements compared to Rs.549 Cr in Q4FY22 and by 102% to Rs.3,830 Cr in FY23 as compared to Rs.1,896 Cr in FY22 Asset under • AUM have grown by 51% YoY. management • Loan losses dropped to -0.3% in Q4
Slide 39: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position • Demand remained robust in Q4FY23 and Affordable • Chola continues to expand its geographical footprint HFC growth is expected to be between 18 - 22% in in the North, East & West Zones while continuing to FY24. deepen its footprint in th
Slide 40: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *8,451 433 3,830 102% *5,590 527 *4,345 620 8,018 1,896 *3,125 1,505 1,542 677 *1,912 5,063 - 3,726 1,157 2,449 1,912 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 On Book Assigned * Total AUM
Slide 41: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 971 321 692 222 519 357 112 189 64 38 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 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 17.36 17.13 5.41 3.93 3.13 4.92 2.35 15.28 15.14 16.49 14.78 12.44 FY19 FY20 FY21 FY22 FY23 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 (₹Cr) * 63,730 * 69,174 * 73,929 * 79,321 * 89,305 * 97,356 4% 4% 4% 4% 7% 6% 2% 2% 3% 5% 2% 3% 3% 7% 6% 7% 6% 9% 10% 4% 5% 6% 2% 2% 2% 4% 4% 3% 4% 4% 15% 17% 18% 15% 18% 16% 55% 61% 58% 58% 52% 54% 7% 6% 5% 5% 4% 5% Mar-21 Mar-2
Slide 45: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 63,730 * 69,174 * 73,929 * 79,321 * 89,305 * 97,356 7% 5% 6% 7% 9% 3% 10% 2% 2% 3% 3% 1% 2% 1% 3% 3% 5% 3% 4% 1% 3% 6% 1% 3% 66% 66% 66% 69% 64% 65% 1% 1% 1% 3% 1% 5% 6% 1% 4% 5% 6% 4% 11% 9% 10% 9% 9% 8% 2% 3% 4% 3% 3% 3%
Slide 46: ALM Statement as of 31st Mar 2023 (As per IND AS)
ALM Statement as of 31st Mar 2023 (As per IND AS) (₹Cr) ALM snapshot as on 31st Mar 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 1,964.63 1,000.00 5.96 375.76 163.61 - 850.00 682.28 5,042.24 Advances 6,993.54 4,324.67 2,954.46 9,75
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. ◼ MS&AD is the 8th largest insurance group in the ◼ Fou
Slide 49: Key Financial Parameters (Rs. Crs)
Key Financial Parameters (Rs. Crs) Particulars – In Rs. Cr FY’21 FY'22 FY'23 Q4 FY'22 Q4 FY'23 Gross Written Premium$ 4400 4854 6200 1393 1776 Growth -0.2% 10.3% 27.6% 9.5% 27.9% NWP 3357 3572 4610 1052 1322 NEP 3202 3437 4019 871 1082 U/W Results -287 -433 -601 -118 -125 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 Q4, Chola MS Q1 FY'23 12.8% 28.1% 27.5% 19.6% -5.5% 135.0% 42.4% 22.7% Q2 FY'23 8.5% 26.4% 12.6% 11.3% 9.4% -9.5% 28.1% 9.0% ▪ Overall growth higher Industry Q3 FY
Slide 51: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth FY’2022-23 Solid GDPI* growth over years (CAGR FY2016 - FY 2023 = 14.1% (With Crop); 15.0% (Without Crop) Rs In Crs Growing 6156 Market Share 4398 4388 4824 4103 4429 3133 2452 3602 3992 4379 4386 4824 6158 5.3% 2313 2851 282 501 Market shar
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% Includes RI Inwards 6200 27.9% 700 0 30. 0% # 600 0 25. 0% 14.9% 4854 26.7% 500 0 4400 20. 0% 10.3% 1393 9.2% -0.2% 400 0 15. 0% 300 0 1776 10. 0% * 200 0 9.5% 5.0 % 3.9% 3.8% 10
Slide 53: Constantly improving operating metrics
Constantly improving operating metrics Particulars 2020-21 2021-22 2022-23 Number of Customers (Live Customer) No in Lacs 165 254 336 Number of policies issued No in Lacs 63 99 121 Market Presence(Branch + CIE + VO) No’s 593 638 604 Bank Branches No’s 37000+ 34000+ 39000+ Motor OD Claims Settlement
Slide 54: Claims Ratio (%)
Claims Ratio (%) Line of Business FY’21 FY'22 FY'23 Q4 FY'22 Q4 FY'23 Motor OD 57.0% 69.8% 71.7% 82.8% 72.0% Motor TP 79.7% 63.4%* 77.0%# 66.6% 78.4%# Motor Total 74.3% 65.1% 75.6% 70.8% 76.6% Health, Travel & PA 77.2% 117.1% 66.6% 78.9% 68.3% Health, Travel & PA (w/o Covid) 46.9% 73.2% 66.6% 77.7%
Slide 55: Investment Book Overview (Rs. Crs)
Investment Book Overview (Rs. Crs) Catogery Mar-21 Mar-22 Mar-23 Govt Securities 7663 8290 9579 PSU / Corporate Bonds 2254 2834 4484 Equity 76 151 321 Others 1041 1229 299 Grand Total (@ cost) 11034 12504 14683 Yield with profit on sale 7.59% 6.81% 6.54% Yield without profit on sale 6.30% 6.18% 6.37
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 5.3% 74.3% 83.0% 74.3% 61.1% 75.3% 2.3% 10.1% 4.9% 16.4% 23.1% 19.6% 4.7% 4.7% 4.6% 75.6% 44.6% 67.9% 58.2% 47.6% 29.3% 35.9% 22.1% 22.1% 25
Slide 57: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment 0.0% 0.0% 0.0% 6.3% 6.8% 6.3% 9.4% 8.9% 9.5% 13.0% 13.3% 13.6% 71.2% 71.0% 70.6% FY'21 FY'22 FY'23 Motor Commercial Health PA & Others Crop ▪ Focus on Commercial business (including SME business) has helped raise the share of top line to 14% ▪
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 Commercial 336 15.1% 254 165 Retail 84.9% FY'21 FY'22 FY'23 Significant growth in retail oriented policies Geographic Presence – Mix % # of Retail Polic
Slide 59: Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream
Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream Channel wise Mix% 0.0% 0.1% 0.2% 0.4% 4.7% 0.5% 4.6% 0.5% 5.1% 5.7% 5.2% 5.6% 27.5% 21.2% 20.8% 25.0% 32.5% 31.7% 35.9% 34.9% 34.5% FY'21 FY'22 FY'23 Corporate Agent Captive* Brokers Banks Direct Business Corporate Agents- O
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) 31.1% of FY’23 GWP 10.7% of FY’23 GWP 37.8% of FY’23 GWP GWP Rs In Crs GWP Rs In Crs GWP Rs In Crs CAGR 8.5% CAGR 15.5% CAGR 7.
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
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) (CY21) (US$) (CY21) (US$) 9.10 2520 5.20 1764 1039 855 2.20 2.20 2.20 1.90 1.70 1.00 0.90 0.50 229 154 130 111 22 22 China Indonesia UK Brazil Japan
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 (Rs In Cr) Growth of 16.4% CAGR (Last 15 Years) = 14.9% over FY’22 2,56,912 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 16,000
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 — Q4 FY23 Earnings Presentation on 6ix