Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q4 FY24 Earnings Presentation
69 slides from Cholamandalam Financial's earnings presentation, Mar 31, 2024
Slide 1: Cholamandalam Financial Holdings Corporate Presentation – Q4-FY24
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q4-FY24 1
Slide 2: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 123 Years of $9.0 $42.0 Turnover cap (as on 31st Years Existence B B (FY23) Mar 2024) Listed 3 Sectors 29+ Businesses 10 Companies 50 Geographical 113 Manufacturing 73,000+ Work force Countries Presence Locations Locations 2
Slide 3: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 41,367 96,261 1,18,087 Turnover (Cr.) 35,171 19,032 19,124 PAT(Cr.) 1,541 1,739 2,917 Market Cap(Cr.) 31,681 9,686 24,097 72,164 97,151 NA 20,936 Turnover (Cr.) 29,587 5,584 4,601 14,431 12,884 6,156
Slide 4: 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 5: Cholamandalam Financial Holdings Limited (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 44.39% 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 6: Shareholding Pattern
Shareholding Pattern Institutional Holders (More than 1%) Shareholding Pattern Top Domestic Institutional Holdings as of March 31, 2024 * ICICI Mutual Fund * Aditya Birla Mutual Fund * HDFC Mutual Fund * Nippon India Mutual Fund 15.43% * Sundaram Mutual Fund * Axis Mutual Fund 13.65% 47.37% Top Fore
Slide 7: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax EPS (Rs.) Q4 FY24 7,158 1,144 27.32 36% 27% 26% Q4 FY23 5,281 901 21.72 Rs.in Cr. Revenue Profit after tax EPS (Rs.) YTD Mar-24 26,087 3,851 94.39 42% 37% 43% YTD Mar-23 18,376 2,810 68.72 7
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Profit After Tax (Rs.in crs) Profit After Tax (Rs. in crs) 1,400 4,500 1,200 4,000 1,144 3,500 3,851 1,000 1,065 3,000 3,420 800 901 855 2,500 2,810 2,665 600 2,000 400 1,500 95 1,000 200 63 500 441 158 - - CIFCL CMSGICL -16 Others -18 CFHL Consol -200 -500 CIFC
Slide 9: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone CIFCL YTD Mar-24 YTD Mar-23 Particulars (Rs. in Cr) YTD Mar-24 YTD Mar-23 Disbursements (Rs. in Cr) 88,725 66,532 As of As of Income 86.00 83.76 31-Mar-2024 31-Mar-2023 Expenses 6.99 9.90 Asset Under Management (Rs. in Cr) 1,53,718 1,12,782 Profit Be
Slide 10: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars March 31, 2024 March 31, 2023 Owned Funds (A) 1,277.09 1,226.02 Adjusted Networth (B) 22,575.32 14,387.29 Risk Weighed Assets ( C) 1,280.25 1,280.89 Outside Liabilities (D) 1.65 52.39 Net assets (E) 1,279.56 1,280.23 Investment in equity share
Slide 11: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 12: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) * 88,725 1,074 6,362 0.03% 1% 1% 8,106 5% 6% 5% 6% 8% 2% 2% 5% * 66,532 2% 9% 9% 451 11,281 13% 14% 3,830 10% 16% 13% 6,388 13,554 6,865 14% 15% * 35,490 9,299 11 * 29,091 1,896 * 26,043 1,926 1,505 80% 78% 1,542 682 537 72% 624 5,536 48,348 3,662
Slide 13: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,45,572 1,404 0.01% 1% 1% 13,404 7% 6% 6% 8% 4,977 1% 1% 9% 1% 3% * 1,06,498 11,430 5% 3% 21% 21% 8% 444 22% 8,451 29,859 20% 3,550 21% * 76,907 5,527 11 * 69,996 5,590 21,588 * 60,549 1,058 4,
Slide 14: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *19,557 168 3423 *14,296 2666 164 *11,708 164 2147 *9,560 *8,172 164 19,388 164 1515 14,132 11,543 1052 9,396 8,008 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Reserves and Surplus Equity Share Capital Note on Networth FY20 – Ra
Slide 15: Chola – Stage 3 Assets Trend
Chola –Stage 3 Assets Trend As per revised RBI norms GNPA% & NNPA% as of Mar24 is at 3.54% and 2.32% respectively. 15
Slide 16: Vehicle Finance
Vehicle Finance Primary Colours 16
Slide 17: Vehicle Finance: Q4FY24 & FY24 Performance
Vehicle Finance: Q4FY24 & FY24 Performance • Disbursements grew by 6% in Q4FY24 to Rs. 12,962 Cr & by 22% Disbursements in FY24 to Rs. 48,348 Cr as compared to Q4FY23 & FY23 respectively. Assets under • AUM has grown by 26% YoY. management Loss and • Loan losses at 0.5% in Q4FY24 from 0.4% in Q4FY23
Slide 18: Sector outlook – Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Light Commercial Vehicle (LCV) segment had ▪ We will continue our focus in this segment in line with a de-growth of 2% in Q4 FY’24 & 3% growth as of macro economic environment and industry growth. YTD Mar’24 which
Slide 19: 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 ▪ We will continue our focus in this segment in line had a growth of 11% in Q4 FY’24 and 8% as of with market demand and retail sentiments. YTD Mar’24 with an all-time high sal
Slide 20: Sector outlook – Vehicle Finance business (3/3)
Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position ▪ The Construction Equipment (CE) segment had ▪ Our exposure in this segment is around 7% at a a growth of 14% in Q4 FY’24 and 23% as of portfolio level. Our focus is to build a quality YTD Mar’24. After two years of con
Slide 21: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year CAGR Chola YoY growth rate (19%) Chola 4 year (in Units) Chola YoY growth rate 0.4% 5% (in Units) CAGR 18% 736778 256291 Industry YoY growth CAGR @ 10% rate -6% CAGR @ 5% 200811 188283 457481 469709 176381 143
Slide 22: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales Chola 4 (in Units) Chola YoY growth rate 19% Chola 4 year Chola YoY growth rate (10%) year CAGR 6276512 CAGR 48% (in Units) 30% CAGR @ 10% 478434 CAGR @ 10% 4226793 3897220 297070 301839 3074383 2713470 197641 128353
Slide 23: 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 24: 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 25: Vehicle Finance - Disbursement/Portfolio Mix – FY24
Vehicle Finance - Disbursement/Portfolio Mix – FY24 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadar and Dadar and Nagar Nagar Haveli & Haveli & MP Daman AP Daman and Diu MP and Diu AP Maharashtra 0.04% Karnataka Maharashtra 0.04% Karnataka 5% 5% 7% Kerala 5%
Slide 26: Vehicle Finance - Disbursement/Portfolio Mix – Q4FY24
Vehicle Finance - Disbursement/Portfolio Mix – Q4FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise HCV 3 Wheeler HCV CE 7% CE 3 Wheeler 7% 1% 7% 1% 6% LCV 2 Wheeler LCV 2 Wheeler 16% 9% 20% 6% MUV 11% Used Vehicles MUV 27% 10% Used Vehicles 34% CAR
Slide 27: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise 7% 6% 5% 6% 6% 5% 5% 5% 7% * 12,962 9% * 12,190 * 12,354 816 Medium Yield Low Yield * 11,731 17% 16% 15% * 11,301 738 16% 882 914 627 613 18% 1,053 653 640 584 10% 10% 1,853 2,048 9% 1
Slide 28: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 84,498 7% 7% 7% 7% 7% * 79,640 5,548 7% 7% 7% 7% 7% * 75,396 * 71,065 5,201 5,670 * 66,938 4,906 5,221 Medium YieldLow Yield 4,721 21% 21% 21% 20% 20% 5,058 4,487 4,878 16,660 4,742 15,872 15
Slide 29: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) * 84,498 42 48,348 * 66,938 39,699 215 *52,881 *50,415 693 *44,206 1,479 84,456 25,439 2,056 23,387 66,723 20,249 48,937 52,187 42,150 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 On Boo
Slide 30: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 11,274 2,532 2,272 8,851 2,054 7,721 7,440 6,624 1,287 945 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 30
Slide 31: Loan Against Property
Loan Against Property ary Colours 31
Slide 32: Loan Against Property – Q4FY24 & FY24 Performance
Loan Against Property – Q4FY24 & FY24 Performance • Disbursements grew by 55% in Q4FY24 to Rs. 4,273 Cr & by 46% Disbursements in FY24 to Rs. 13,554 Cr as compared to Q4FY23 & FY24 respectively. Asset under • AUM has grown by 38% YoY. management • Loan losses dropped to -0.3% in Q4FY24 from 0.5% in
Slide 33: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL estimates the LAP segment to register 24-26% • Chola’s LAP team is focusing on increasing its growth in FY24. Similarly, strong growth is anticipated market share backed by consistent disbursement in fiscal 2025, with N
Slide 34: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 29,859 13,554 823 * 21,588 1,114 9,299 * 16,795 * 14,777 1,544 * 12,960 29,036 2,062 2,425 5,536 20,474 15,250 3,662 3,627 12,716 10,536 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 F
Slide 35: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 973 3,208 759 2,292 1,807 1,642 469 1,479 306 244 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 35
Slide 36: Home Loans
Home Loans Primary Colours 36
Slide 37: Home Loans – Q4FY24 & FY24 Performance
Home Loans – Q4FY24 & FY24 Performance • Disbursements grew by 24% in Q4FY24 to Rs. 1,747 Cr & by 66% Disbursements in FY24 to Rs. 6,362 Cr as compared to Q4FY23 & FY23 respectively. Asset under • AUM have grown by 59% YoY. management • Loan losses at -0.04% in Q4FY24 from -0.3% in Q4FY23 & has Loss
Slide 38: 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 leverage its strength in reaching 12-14% in FY25 out to lower and middle-income borrowers across the country, penetrating to smallest villages and towns. • GNPAs o
Slide 39: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *13,404 356 6,362 *8,451 433 3,830 *5,590 13,048 *4,345 527 *3,125 620 8,018 1,896 677 1,542 5,063 3,726 1,505 2,449 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 On Book Assigned * Total AUM
Slide 40: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,756 489 321 971 222 692 519 357 112 64 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 40
Slide 41: Funding Profile
Funding Profile <&} Chola aXe 41 Murugappa Financial Holdings
Slide 42: 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 18.57 17.13 5.41 3.93 3.13 3.47 2.35 15.28 15.14 16.49 14.78 15.10 FY20 FY21 FY22 FY23 FY24 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Tier 2 includes 1.58% % of CCD which is comp
Slide 43: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 1,23,103 * 1,34,474 * 97,356 * 1,08,140 * 1,19,470 1% 2% 4% 4% 6% 2% 3% 2% 3% 7% 5% 2% 3% 3% 10% 3% 3% 15% 4% 16% 18% 17% 4% 3% 4% 2% 2% 4% 16% 5% 5% 7% 14% 12% 11% 11% 54% 49% 49% 48% 46% 5% 5% 4% 4% 4% Q4 FY23 Q1FY24 Q2
Slide 44: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 97,356 * 1,08,140 * 1,19,470 * 1,23,103 * 1,34,474 4% 4% 5% 5% 7% 10% 15% 16% 17% 18% 1%3% 3% 1% 3% 3% 3% 0.4% 2% 1% 3%2% 3% 1% 4% 61% 56% 57% 54% 52% 1% 1% 1% 1% 6% 6% 6% 6% 1% 7% 8% 7% 8% 8% 5% 3% 3% 3% 3% 3% Q4 FY23 Q1FY
Slide 45: ALM Statement as of 31st Mar 2024 (As per IND AS)
ALM Statement as of 31st Mar 2024 (As per IND AS) (₹Cr) ALM snapshot as on 31st Mar 2024 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 5,493.73 1.66 7.70 24.43 231.16 1,422.56 717.38 - 7,898.62 Advances 5,448.61 4,911.47 4,082.44 13,743.
Slide 46: Cholamandalam MS General Insurance Company Limited
Cholamandalam MS General Insurance Company Limited Financial data in this section is as per IGAAP 46
Slide 47: 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 48: Key Financial Parameters (Rs. Crs)
Key Financial Parameters (Rs. Crs) Particulars – In Rs. Cr FY'22 FY'23 FY’24 Gross Written Premium$ 4854 6200 7598 Growth 10.3% 27.6% 22.5% NEP 3437 4019 5079 U/W Results -433 -599 -659^ Investment income (Net) 799 887 1116 PBT 106* 264 444^ PAT 77 199 331 Net worth (Ex fair value change surplus) 19
Slide 49: 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'24 5.9% 8.2% 20.9% 18.5% 31.3% 16.7% 19.4% 16.5% Q2 FY'24 7.4% 4.1% 13.9% 28.9% 11.7% 23.0% 23.4% 18.6% • Overall growth higher Industry Q3 FY'2
Slide 50: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth GDPI* growth over years – Faster growth in Last 2 Years Rs In Crs (CAGR FY2019 - FY 2024 = 11.2%) FY’2024 7533 6156 4824 Growing Market 4429 4398 4388 Share 5.4% FY'19 FY'20 FY'21 FY'22 FY'23 FY'24 Market share in Motor Insurance Growth vis-
Slide 51: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) Includes RI Inwards FY’22 Excluding exceptional item RoNW @ 9.13% 800 0 6200 7598 27.5% 30. 0% 14.3% 700 0 22.5% 25. 0% 600 0 4854 9.7% 500 0 26.7% 13.7% 20. 0% 400 0 10.3% 15. 0% * 300 0 1776 4.0% 4.0% 200 0 2020 10. 0% 2.9
Slide 52: Capital efficiency - No Capital Infusion Since FY’15
Capital efficiency - No Capital Infusion Since FY’15 Rs In Crs 1962 2160 2492 2160 2492 Net Worth 1520 1718 2050 1718 2050 442 442 442 442 442 FY'22 FY'23 FY'24 Q4 FY'23 Q4 FY'24 Capital Invested Reserves ▪ Accumulated profits @ 82.3% of Net worth (Rs. 2492 Crs) as on Mar’24 ▪ Total Capital infused
Slide 53: Consistent Operating Metrics
Consistent Operating Metrics Particulars 2020-21 2021-22 2022-23 2023-24 Number of Customers (Live Customer) No in Lacs 165 254 336 462 Number of policies issued No in Lacs 63 99 121 137 Market Presence(Branch + CIE + VO) No’s 593 638 604 669 Bank Branches No’s 37000+ 34000+ 34000+ 38000+ Motor OD C
Slide 54: Claims Ratio (%)
Claims Ratio (%) Line of Business FY'22 FY'23 FY’24 Q4 FY’23 Q4 FY’24 Motor OD 69.8% 71.7% 72.8%^ 72.0% 71.5%^ Motor TP 63.4%* 77.0% 76.0% 78.4% 74.8% Motor Total 65.1% 75.6% 75.1% 76.6% 73.8% Health, Travel & PA 117.1% 66.6% 66.7% 68.3% 69.0% Crop NA NA 104.2% NA 119.6% Fire 33.5% 39.0% 78.5%^ 20.4
Slide 55: Investment Book Overview (Rs In Crs)
Investment Book Overview (Rs In Crs) Category Mar-22 Mar-23 Mar-24 Govt Securities 8290 9579 10121 PSU / Corporate Bonds 2834 4483 5475 Equity 151 321 583 Others 1229 300 322 Grand Total 12504 14683 16501 Yield with profit on sale 6.8% 6.5% 7.1% Yield without profit on sale 6.2% 6.4% 6.6% Investment
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 82.9% 74.3% 65.1% 75.6% 75.1% 5.3% 5.4% 10.1% 16.4% 16.7% 23.1% 19.6% 4.9% 44.6% 43.8% 67.9% 58.2% 47.6% 4.7% 4.6% 35.9% 39.5% 22.1% 25.4% 2
Slide 57: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment 9.4% 8.9% 9.5% 6.2% 10.0% 13.0% 13.3% 13.6% 6.3% 6.8% 12.0% 6.3% 6.0% 71.2% 71.0% 70.6% 65.9% FY'21 FY'22 FY'23 FY'24 Motor PA & Others Commercial Health Crop ▪ Focus on Commercial business (including SME business) mix @ ~12% ▪ Health mix impro
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 462 16.3% 336 254 165 Retail 83.7% FY'21 FY'22 FY'23 FY'24 Significant growth in retail oriented policies Geographic Presence – Mix % # of Re
Slide 59: Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream
Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream Channel wise Mix% 6.5% 6.3% 5.1% 8.8% 5.2% 5.1% 5.4% 11.0% 25.0% 32.5% 40.4% 36.5% 35.9% 34.9% 31.1% 29.2% 27.5% 21.2% 18.1% 14.5% FY'21 FY'22 FY'23 FY'24 Banks Corporate Agent Captive* Brokers Direct Business Others *Chola
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) 29.2% of FY’24 GWP 9.0% of FY’24 GWP 33.8% of FY’24 GWP CAGR (2021-24) = 10.0% CAGR (2021-24) = 12.0% CAGR (2021-24) = 8.3% 219
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 Taylor 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 India China Indonesia Brazil USA UK Japan R
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) CAGR (Last 15 Years) = 14.8% Growth of 12.8% over FY’23 289738 256912 189302 198724 220772 128213 150572 170036 77541 84686 96394 47355 58357 69086 16000 18100
Slide 65: 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 42.5% 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 Product Regulations Rural / Social / TP Obligations Courts’ recognition of amended MV Act Use and File across lines Claim initiation time
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: 044–4090 7638 / 2530 6486 http://www.cholafhl.com Email-ID Krithika E - Company Secretary–krithikae@cfhl.murugappa.com 67
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 FY24 Earnings Presentation on 6ix