ICICI Lombard General Insurance Company Ltd

NSE:ICICIGI

Earnings Call Transcript 2021-Q4

[Operator]

Good evening, ladies and gentlemen. A very warm welcome to the ICICI Lombard General Insurance Company Limited Q4 FY '21 Earnings Conference Call. From the senior management we have with us today, Mr. Bhargav Dasgupta, MD and CEO of the company; Mr. Gopal Balachandran, CFO and CRO; Mr. Sanjeev Mantri, Executive Director, Retail; and Mr. Alok Agarwal, Executive Director, Wholesale. [Operator Instructions] Please note that this conference is being recorded.I now hand the conference over to Mr. Bhargav Dasgupta, MD and CEO, ICICI Lombard General Insurance Limited. Thank you, and over to you, sir.

[Bhargav Dasgupta, MD, CEO & Director]

Thank you, Janet, and good evening to each one of you. Thank you for joining the earnings conference call of ICICI Lombard for Q4 of FY 2021 and the full year of 2021. We hope you and all your colleagues are safe and healthy, guys.So what I'll do is I'll give you a brief overview of the industry trends and developments that we've witnessed during the last few months. Post this, our CFO, Mr. Gopal Balachandran, will share the financial performance of the company for the quarter and the financial year ended FY 2021. Now, as we speak, we are going through the second wave of the pandemic, and as a nation, we are gearing up to overcome the burdening effects of the same. Till this wave, which I would say, started sometime in February, the Indian economy was displaying an upward momentum in economic activity, which was reflected in improved GST collections, strong manufacturing PMIs, uptick in auto sales and growth in imports. This was fueled by the growth-focused Union Budget of FY 2022, that is aimed to put the economy back on the high-growth trajectory. A record agriculture production had kept the rural demand buoyant and resilient. As economic activity picked up and vaccination program ramped up, the urban demand also started to pick up. However, given the current surge in COVID cases and the imposition of partial lockdowns in certain areas, there is an increased uncertainty in the outlook for the economy. For now, the exact impact of the second wave cannot be ascertained with confidence, and we continue to keep a close watch as the events unfold. Turning to the industry performance for the last year, the industry growth has seen normalization after the initial dip with the gross domestic premium income back in the black in H2 of last year. During the quarter gone by, segments such as motor insurance saw steady sales from the new motor vehicle sales due to the need for personal mobility. However, recent lockdown in some parts of the country has adversely impacted new motor vehicle sales. The health insurance premium continued to show reasonable growth for the industry. As far as commercial lines are concerned, the growth in the fire segment was elevated for the first 3 quarters and then tapered in the last quarter due to the base impact. Marine and engineering lines witnessed some pickup in -- with increased movement of goods on resumption of economic activity in the second half of FY 2021. Overall, as per disclosure on the website of IRDA, the general insurance industry registered a growth of 5.2% in FY 2021 over the last year with the industry GDPI moving from -- moving up to INR 1.987 billion from -- in FY 2021 from INR 1.889 billion in FY 2020. The combined ratio for the industry was 110.4% in the 9 months of last year as compared to 117.9% in 9 months of FY 2020 based on available information from public disclosures. Further, the overall combined ratio for private multi-line general insurance -- insurers was 104.6% in the 9 months of FY 2021 as compared to 106.5% in the 9 months of FY 2020.I would like to now touch upon some of the specific policy announcements that we believe are important that came during the quarter. One, the authority decided to withdraw the circular on prudent management of financial resources in the context of COVID-19 pandemic. The company paid an interim dividend of INR 4 per share during the year, which we announced during the Q4 of last year. The Board of Directors of the company has proposed a final dividend of INR 4 per share for FY 2021 in today's Board meeting. The payment is subject to the approval of the shareholders in the ensuing AGM of the company. The overall dividend for FY 2021 -- proposed final dividend, is INR 8 per share. The second big event has been that the Indian Union Budget of FY 2022, the government announced the increase in FDI limit for the insurance sector from 49% to 74%. Though we see this as a big positive in the long term, it may provide incremental capital to small players and thus marginally increase the competitive intensity in the short term. The third development on the policy front is that the -- the authority, the idea is yet to issue a revision in the prevailing rates for motor third-party liability insurance cover. This is -- even though last year, also, we didn't get an increase. Further, we've also seen some recent judgments by the courts, which would result in an increase in the average claim size of these claims. What we've done is we've reassesed our Motor TP outstanding book in line with these recent judgments, and accordingly, strengthened results appropriately. No change in rates, coupled with recent court judgments, may have an adverse impact on the loss ratios going forward. The recent COVID-19 crisis, looking ahead, also highlights how critical it is when it comes to health, to offer not only a comprehensive coverage but also innovative solutions that is beyond the conventional insurance. So this is precisely what we've tried to do with the development of the IL Take Care app. We believe that the IL Take Care app will be a game changer in years to come in providing a complete holistic health care solution with innovation and customer satisfaction. We are pleased to announce that as of March 31, 2021, the app has crossed 5 lakhs downloads. The digital platforms incubated by the company over the years continue to see enhanced adoption in recent times with over 97% of the policies issued by us in the year ended 2021, even being in paperless form. Under the SME segment, close to 90% of the business source were through these digital solutions. With regard to claim settlements, 60.8% of our motor OD claims were serviced through live video streaming app, InstaSpect, in March 2021, up from 24.5% in March 2020. This is -- this feature, as you would recollect does away the need for a physical survey -- physically surveying a damaged vehicle, allowing for real-time claim settlement and approval. Since its inception, the InstaSpect app has enabled over 1 million customers to get their vehicle's damage claims approved instantly. As indicated in the previous calls, our technologies -- other technology, including the AI and the ML Solutions goes beyond policy issuance, covering claims, fraud control and servicing. Our automated AI solution, auto approved close to 61.6% of the motor vehicle inspections in March 2021, up from 40.6% in March of last year. On the health insurance front, under group health policies, 60.1% of the fresh cashless claims were authorized by an AI/ML engine in March 2021 as compared to 31% in March 2020. Overall, the year gone by has definitely not been less than a roller coaster. The exact impact of the second wave and the economic recovery thereafter remains unpredictable. For us, at ICICI Lombard, a well-diversified portfolio mix positions us to uniquely take advantage over the trends that we are witnessing currently. The consistency and discipline in terms of underwriting profitable segments has led ICICI Lombard to become a differentiator in the GI space. We have entered the fiscal 2022 with a strong capital position and strengthened reserves. We also look forward to our integration with Bharti AXA post all approvals and the synergies to start paying out towards the second -- the latter half of this year and more so the next financial year. In the face of growing competition and economic uncertainties, we remain confident that given the strong leadership, talent and our culture, because of these factors, we believe that in the years ahead, we will continue to drive our growth ahead of competition, especially in our preferred segments. We are also continuously focusing on evolving our strategies to further consolidate our position in the GI segment while remaining -- retaining our mission for creating long-term value for our stakeholders through prudent risk selection and sustained profitability. I will now request Gopal to take you through the financial numbers for the recently concluded quarter and the year.

[Gopal Balachandran, CFO & Chief Risk Officer]

Thanks. Thanks, Bhargav, and good evening to each one of you. I will now give you a brief overview of the financial performance of the company for quarter 4 and the full year 2021. We have put up the results presentation on our website. You can access it as we walk you through the performance numbers. The gross direct premium income of the company stood at INR 140.03 billion in full FY 2021 as compared to INR 133.13 billion in FY 2020, a growth of 5.2%. This was largely in line with the industry growth of 5.2%. On a quarterly basis, the GDPI grew in quarter 4 by 9.4% over quarter 4 FY 2020 compared to the industry growth of 14%. Our focus on preferred segments primarily drove our GDPI growth. The fire segment registered GDPI growth of 39.2% in FY 2021, thereby catalyzing the GDPI growth of our property and casualty segment. The growth in this segment has normalized due to the base impact that Bhargav also spoke about. As indicated in our results presentation, the overall property and casualty segment grew by 23.5% for FY 2021 over FY 2020. On the retail side of business, motor segment was back in the black, registering a growth of 3.4% in FY 2021. Individual health indemnity business grew by 22% for FY 2021. To harness the potential of these segments, we have been expanding our distribution network to increase penetration in Tier 3 and Tier 4 cities. As a reflection of that, our agents, including point-of-sale, or POS, increased to 59,545 as of March 31, 2021 from 55,615 as on December 31, 2020. The advance premium numbers was INR 32.06 billion as at March 31, 2021, up from INR 31.97 billion at December 31, 2020. Insofar as the progress in relation to the scheme of arrangement with Bharti AXA is concerned, we await NCLT and IRDAI final approval in the matter. The expenses incurred of INR 0.41 billion have been absorbed in the P&L during FY 2021. Our combined ratio for the full year stood at 99.8% compared to 100.4% in FY 2020. Combined ratio for the quarter 4, 2021 stood at 101.8% compared to 100.1% in quarter 4 FY 2020. Our investment assets rose to INR 308.92 billion at March 31, 2021 as compared to INR 298.92 billion at December 31, 2020. Our investment leverage, net of borrowings, was 4.09x at March 31, 2021 as compared to 4.05x at December 31, 2020. Investment income increased to INR 21.96 billion for the full year,as compared to INR 18.47 billion in FY 2020. On a quarterly basis, investment income increased to INR 5.37 billion in quarter 4 FY 2021 as compared to INR 4.06 billion in quarter 4 FY 2020. Our capital gains was at INR 3.59 billion for the full year FY 2021 as compared to INR 1.99 billion in FY 2020. Capital gains for quarter 4 FY 2021 was at INR 0.66 billion as compared to INR 0.95 billion in quarter 4 FY 2020. Our profit before tax grew by 15.1% to INR 19.54 billion in FY year 2021 as compared to INR 16.97 billion in FY 2020, whereas profit before tax grew by 21.4% to INR 4.50 billion in quarter 4 FY '21 as compared to INR 3.71 billion in quarter 4 FY 2020. Consequently, profit after tax grew by 23.4% to INR 14.73 billion in FY 2021 as compared to INR 11.94 billion in FY 2020, primarily due to lower effective tax rate. PAT grew by 22.6% to INR 3.46 billion in quarter 4 FY 2021 as compared to INR 2.82 billion in quarter 4 FY 2020. Return on average equity was 21.7% in FY '21 as compared to 20.8% in FY 2020. The return on average equity was 18.8% for both the quarter 4 of FY 2021 and quarter 4 FY 2020. Solvency ratio was at 2.9x at March 31, 2021 as against 2.76x at December 31, 2020, continued to be higher than the regulatory minimum requirement of 1.5x. As I conclude, I would like to reiterate that we ended both quarter 4 FY '21 and the full year with healthy financials. We continue to stay focused on profitable growth and sustainable value creation. Our strategy continues to revolve around those 5 pillars of consistency in market leadership, diversified product mix with multichannel distribution network, excellence in claims service and technology, robust risk selection and strong investment returns on a diversified portfolio. Through our business performance, we have always endeavored to create long-term sustainable value for all our stakeholders. I would like to thank you all for attending this earnings conference call, and we will be happy to take any specific questions that each one of you may have. Thank you.

[Operator]

[Operator Instructions] The first question is from line of [ Arav Sanjay ] from VG Capital.

[Unknown Analyst]

Congrats on a decent kind of results in a challenging year. So I have 3 questions. My first question is on the growth outlook, as you mentioned, that the second wave, the risk is difficult to quantify. But in the past there also, we have seen that some players see more losses compared to some better players. So do you see going [indiscernible] , there are some focus of consolidation where we can grow better than the industry. And what are the areas where you are focusing on, especially in FY '22, given like property was very robust in FY '21? Are you guys focusing on FY '22? That's my first question. Second question, sir, I wanted to ask is that in the ground level connect, I'm getting the sense that a lot of -- there are a lot of standard products, which are coming in, private insurers are not that keen on selling it because obviously of the pricing concerns. Sir, do you think as a risk some of the regulators imposing some kind of quota on these products in the same order [indiscernible] to increase their distribution, that is the second. And third is, has there been any updates on the health benefit portfolio, any update from there?

[Bhargav Dasgupta, MD, CEO & Director]

Let me go reverse. The third question first. So in terms of the update on the health benefit, I guess, what you mean is the decision of the bank to stop distributing that product for us. As of now, they have not changed their decision. We are in the same situation. So for the 2 quarters, we've not had that business come to us. And as of now, that is continuing, though we are continuously engaging with the bank. And we will -- even when we get a confirmation from the bank that they want to restart, we will obviously communicate. In terms of the second question on standard products. Look, first, there are certain standard products that -- we've said this many times. We believe some of the standard products are good for the industry, particularly the RBI, obviously, the health product, we believe, can actually open up a segment of market and give them comfort that this is a standard terms and conditions. So hopefully, the dissonance and the distrust of having -- not having understood the terms and conditions will reduce. So it could actually open up opportunity in that segment, which was below the usual target segment of at least most of the private sector. So we, as a company, are -- definitely continue to focus on building that segment. And the way we've done it is we've segmented the market to many factors and looked at where, even at that lower price, that product, because the terms and conditions are also slightly different from our normal core CHA product. So we looked at segments where that becomes viable for us in terms of opening a new market in a sustainable manner. So it's not as if all standard products are not useful in terms of growing the market. The second point there is in terms of quota. At least all conversations till now, we've not got that sense. So we think that the risk is low. But in these matters, you never know. But hence, what we tried to do is pick up, as I said, in that particular product segments where it makes sense. And we want to kind of focus on that. Coming back to your first question on what we'll do and what will happen, you're absolutely right. So one of the approaches that we've taken, if you see last year, a year gone back -- a year gone by, clearly, the focus was in terms of gaining market share in certain key segments. So for example, fire, the prices went up. We significantly increased market share, as Gopal has explained. This year, there will be a base effect on the pricing. However, the pricing is reasonably adequate if you do a proper job of underwriting and risk selection. So we will continue to focus on gaining our P&C lines of business, largely in the corporate and SME segment, as we've been doing for the last couple of years. That strategy continues. In terms of motor, we, again, outperformed the market. If you see our mix, the mix has also changed a little bit in favor of CV. Certain CV segments, we've kind of -- we've been talking about it every quarter for the last maybe 5, 6 quarters, and we are identifying certain segments. And that's something that we've done. And we will continue to grow the motor book. May not be exactly in the same segments and same channels. We may recalibrate, but the effort will be in terms of continuing to gain market share. In health, yes, the benefit part with the bank has come down, but -- and that has affected our overall growth in that category. But equally, we've added a lot more other banking and distribution partners. Plus, traditionally, we're very strong in NBFCs and HSCs, which actually suffered since the day of the ILFS crisis. And that we are hoping, in fact, with Q4, it started building back up. And we are hoping that it will build out going ahead. So that's our segment that we'll focus on. It may not replace the loss of business that we are -- we've seen because of the bank, because of all -- there was much higher, but it will start replacing a part of that loss.

[Operator]

[Operator Instructions] The next question is from the line of Ajox Frederick from B&K Securities.

[Ajox Frederick H., Research Analyst]

So my first question is with respect to the target business lines you were mentioning. So I assume that you have produced certain pockets in motor OD, whereas you are not finding it lucrative on the margin side, probably the competition today has gone up. From current -- from this standpoint, do you think the same scenarios could play out in health as well given that the current scenario could be slightly difficult to garner first and the competition intensity might go up. So I'm just trying to relate your philosophy in motor to health? That's my first question.

[Bhargav Dasgupta, MD, CEO & Director]

So yes. So if you see -- I mean, you're rather than looking at just a quarter-on-quarter basis. If you look at historically, I mean, from the time that we saw declassification in 2008, this has been the constant experience, right? There are times when certain product lines get very hypercompetitive. People make, in our opinion, a bit of mistake in terms of getting over aggressive, burn their finger and then step back. And that's how we have to recalibrate our business. So there are times when we increase business in a certain segment and there are times we focus on some other segments. So -- and the entire attempt over these -- let's say, the 12, 13 years from 2018 (sic) [ 2008 ] has been to build a sustainable business from a long-term perspective. And that's what we've been able to achieve. And I don't see a big change in that. I mean at the end of the day, maybe for a short while because of maybe the COVID claims or maybe because of what people perceived was some benefit in the first half last year, people may have been a bit more aggressive in the motor-only segment, where we felt -- and if you remember our call that -- in our Q3 calls, we had said that we may want to calibrate a bit because of the aggression that we are seeing. And people were pricing maybe based on the past book rather than pricing on the future book, past experience rather than the future experience, and we've done that. So there could be some, maybe a quarter or 2 of such experiences. But over the long term, we remain reasonably confident that this is a typical cyclical experience that we've seen and will gain back. Coming back to the last point, in terms of -- again, having said that, in terms of more immediate impact, last year, because of COVID, we saw 2 things happened. We saw elevated COVID claims, which came through maybe in Q2 and Q3 with a bit of a lag. But we saw a dip in the motor claims, and we saw a dip in the non-COVID claims. Whether the exactly same picture will play through this year, we don't know. But early signs -- so for example, if you see the non-COVID claims of health, for example, it's remained elevated unlike Q1 of the year gone by. Q4, the non-COVID claims have remained elevated. Will it drop? I think the early signs, I think, that will drop. Will it drop to the same extent as Q1 of last year? We don't think so. It will drop, but less is our belief. And I think the same thing will happen for motor. I think the claims will drop a bit, may not be to the extent that we saw in Q1, but it will drop a bit. Again, very difficult to anticipate the extent. That's why we keep saying that you have to be very, very close to the ground and take very frequent calibration of your business approach based on what you're seeing on the ground. And that's what, I think, over the years, we've tried to be good at. And that's what we continue to do.

[Ajox Frederick H., Research Analyst]

Got it, sir. Sir, my second question is again on the health. So what portion of the total health has been your new business in FY '21? The reason I'm asking is this is, usually, the second year and third year's like claims based on this business, which you wrote in FY '21. That would have been usually better. But now that the second wave is coming up and uncertainties out there. So what is your sense because we have written a decent chunk of health business last year, so how do you think that this will pan out probably in FY '22 and probably FY '23.

[Bhargav Dasgupta, MD, CEO & Director]

And I'll ask Gopal to answer this, give you the numbers in terms of new. But the principle that I explained in terms of what happened in the -- so there are 2 pieces, right? The health benefit and the health indemnity. The benefit piece has got nothing to do with COVID. It's a specific named disease. So there there's no COVID impact because of that. So there's no change. Though, as I've explained earlier, the fact that we -- we've reduced the benefit business in the bank channel, that in a way has had an impact in Q3 of this year and Q4 of this year. That will continue for 2 more quarters if the bank doesn't restart. But the question, I guess, is more relevant for the indemnity book. And as I was explaining, this year, for example, we've seen a 7%, 8% increase in loss ratios in the indemnity book because of COVID. The non-COVID reduction versus COVID increase, we've seen an increase. Whether the same picture will happen next year, we don't know. We think it may be a bit more, but we will still see some benefit on non-COVID is our estimate. But in terms of mix of new and old, I'll just ask Gopal to give you the numbers.

[Gopal Balachandran, CFO & Chief Risk Officer]

Yes. So Ajox, I think effectively, as you would have seen on the results presentation, I think the overall indemnity book for us, full year grew at about 22% vis-à-vis, let's say, 16% that we had seen for the last year. And within that, I think if you look at the new retail indemnity book for the full year, grew at almost a similar number at about 21%. And even the renewal book for us, for the full year, grew at almost about 22%. So to that extent, I think the growth, what we have seen has been through a combination of businesses that we have been sourcing on an incremental basis with respect to new acquisition of customers. And equally, I think, increasingly, we are also being able to retain a higher proportion of customers on the health side. So effectively, at this point of time, it is broadly kind of balanced between the 2.

[Ajox Frederick H., Research Analyst]

All right. Just one data keeping question on COVID. Sir, you have given this number earlier, like what are the number of cases and what has been the payout probably in the 4Q. Till 9 months, it was INR 294 crores, right?

[Gopal Balachandran, CFO & Chief Risk Officer]

Yes. So if you look at for the full year, I think if you look at for the 9 months, I think we had kind of spoken about a number of about INR 2.94 billion. That number for the full year in terms of the number of claims that has been intimated to us is almost close to about close to 50,000 claims for the full year that we have seen. And the amount of intimation that we have seen is about INR 3.76 billion.

[Operator]

The next question is from the line of Nidhesh Jain from Investec.

[Nidhesh Jain, Analyst]

Two questions. First, what is our strategy on the indemnity segment? If you look at the sector, sector is growing at almost 30%, 35%. But our growth is slightly lower than the sector, especially this year where the sector has seen significantly higher growth. So are we consciously curtailing growth given the COVID environment? Or what is our strategy to gain market share there? That is the first question. Second is we can see that there are 2, 3 headwind that the company is going through. One is that ICICI Bank has decided not to sell credit health policies. There has been a bit of increase in motor TP play -- motor TP inflation rate. So -- and next year, we will be merging ourselves with Bharti AXA. So for the combined entity, what is the range of ROE expectation that the management has from a medium- term perspective?

[Bhargav Dasgupta, MD, CEO & Director]

So in terms of health, the strategy clearly is that we want to grow the business definitely faster than the market. And if you see the focus where we added distribution was in agency, health agency, which is what typically the standalone companies derived a lot of benefit from. And if you look at the agency channels of those business, it's actually much faster than the industry numbers. The number is a bit muted because the indemnity number that we got from the -- we also sell with the bank some attachment of the indemnity also. That also has come down. So that has had some impact on the business. The strategy that we've kind of set down for ourselves is that -- and I've kind of talked about that, but at the cost of repeating, the whole approach is, change the way we think of providing health care to our customers, not just health claims. So I talked about the IL Take Care app, the whole thought process there is a lot greater engagement for the entire journey of a customer with us, starting with wellness, starting with some health benefits that we give, starting with -- and then adding the OPD, home health care, the teleconsulting, the virtual video consulting, et cetera. So the entire approach is look at the entire journey of a customer and provide all of that, which is a bit different from the market, which is purely an IPD kind of product. But the bigger important piece is also distribution. And that distribution increment -- increase in distribution is key. You may have a good product or a good solution or a service, but distribution is key. And that's where we are kind of investing. And that's why I said, the area that we are investing in terms of health agency, that's actually done even better than the numbers that we talked about in terms of aggregate numbers. Gopal, anything that I missed that you want to add?

[Gopal Balachandran, CFO & Chief Risk Officer]

No, I think you covered it well, Bhargav.

[Bhargav Dasgupta, MD, CEO & Director]

Yes. The other point in terms of the headwinds, you're absolutely right. There are a couple of these headwinds. And we are looking at what will happen once the integration is done. What we can share with you at this point in time. And once the approval comes in, we will probably be in a better position to tell you the full picture. But the way we are seeing it is that the integration is going well. Honestly, ahead of what we had originally anticipated. So we will save a couple of months' time is what our hope at this point, at this stage of the approvals. And we've -- I think the team has done a lot of work. Both teams have done a lot of work in terms of preparing for the integration. Whatever we are allowed to do till all approvals come in. And on balance, I think we are quite happy with the way things have been progressing. Our sense is that in the initial year, maybe there will be some impact because, as you know, the combined Bharti AXA is much higher. But we clearly see the opportunities in terms of synergies. Whatever we had assumed at the time of the transaction, we are probably a bit more optimistic about those numbers -- or crossing those numbers in due course. It may not happen this year, but the year later, that will be positive.

[Nidhesh Jain, Analyst]

Sure. And any ROE range that you would like to state at this point in time?

[Bhargav Dasgupta, MD, CEO & Director]

Look, the ROE range for us will remain -- we will try to continue to deliver around 20% ROE. Look, one of the things that we are also still hopeful is that this TP price increase that we've not got in the month of April, we are still hopeful that it will come during the year, around -- we are hoping that will come by June. If that comes, then I think we'll be able to deliver our consistent ROE objective that we set. Even otherwise, that's the attempt that we will make. It will definitely be headwinds -- definitely have had an impact in terms of our the ease with which we could have done it, but that will remain the endeavor for us to continue to deliver ROEs around 20%.

[Operator]

The next question is from the line of Udit Kariwala from AMBIT Capital.

[Udit Kariwala, Research Analyst]

Am I audible?

[Bhargav Dasgupta, MD, CEO & Director]

Yes, Udit.

[Udit Kariwala, Research Analyst]

I have 2 questions. First, in terms of the COVID, the second wave coming in, last year, IRDA had asked all insurers to come up with a COVID insurance policy, and Lombard would have also participated in that or you would have also underwritten those policies. Now having written those policies in FY '21, given the kind of cases we are seeing at this point, do you see a broad -- I know it's difficult to say where the claims will go or where the cases will go. But even if similar kind of cases would have to come as last year, the payouts this year would be materially higher given the -- given those policies? That's one. And is there any provisioning that you'll carry -- are you carrying at this point? And the second question is, if you could give some sense, maybe I would have missed, I joined a little late, on the competitive intensity on the motor segment, both OD and TP? These are 2 of my questions.

[Bhargav Dasgupta, MD, CEO & Director]

Yes. So in terms of the COVID policies, if you recollect, we had actually launched a COVID benefit product even before the regulator asked all of us to do it because at that point in time, we said that it was -- if you remember, the small -- some insured COVID benefit policy. That was launched simply because we felt at that point in time, it was important for the market because this was probably a segment who wouldn't have any insurance. Honestly speaking, at that point in time, when we designed that product, we hadn't anticipated the number of claims that India had by the end of the first wave. So that product itself gave us some amount of losses last year. That obviously won't be repeated this year because that was not a -- it was not a compulsion. We had launched a product that we did. In terms of the overall loss ratios for health, honestly, very difficult to say with confidence where it will go, as I was trying to explain earlier that last time, we saw non-COVID claims come down while COVID claims come up. In aggregate, we had a -- still a negative impact on the health portfolio. But on the motor portfolio, we benefited last year. Will the same picture play out this year? Maybe, maybe not. Because our sense is that the benefit that we saw in the motor portfolio, we have not seen to the same extent this year because it will not be the same kind of lockdown that we saw in April and May last year. But will the frequencies drop? We believe the frequencies will drop. Similarly, non-COVID claims, till Q4, we didn't see much of a drop till now. But early signs, we are seeing non-COVID, health claims, that is, again, dropping. Will it drop to the same level as last year? Again, unlikely. But hence, we still don't think that it will completely be a blowout. We have also seen the average claim size drop this time compared to last time. As an industry and, we, as a company, have also done a lot of work in terms of preparedness. So we are better prepared to deal with this. So on balance, we will have to watch for all of these 3 moving parts to figure out to see how it plays out.

[Udit Kariwala, Research Analyst]

And on the provisioning part, on that similar question...

[Bhargav Dasgupta, MD, CEO & Director]

Gopal, do you want to take that?

[Udit Kariwala, Research Analyst]

And I'm sorry, just one thing. On the ICICI benefit policy because we are on the health topic. If there is any renewal premium, right, what happens to that? How is bank catering to that? That would be helpful to know.

[Bhargav Dasgupta, MD, CEO & Director]

Yes. So these are typically 5-year policies that we used to write and the renewal varies within use to happen because most people -- these are linked to the mortgage book. So the mortgage, if you see the average duration of mortgage books is also about 7, 8 years. So a lot of people would not renew. We also didn't have a focused folks approach renew those books. We build that capability. And if a customer comes, we will definitely renew those policies. We've actually built some of those capabilities digitally, et cetera, now. So we will renew that. But it may not be a very large number. But coming back -- going back to your question on results, yes, as usual, we've been a bit conservative, but I'll ask Gopal to talk about what we've done.

[Gopal Balachandran, CFO & Chief Risk Officer]

Yes. So I think, Udit...

[Bhargav Dasgupta, MD, CEO & Director]

I think it was on the motor -- sorry, in the health that Udit had a question.

[Gopal Balachandran, CFO & Chief Risk Officer]

Yes. So I think, Udit, I think approach to reserving is something that we have been talking through the year. I think, for example, in the initial quarters, as you would have been hearing us say that even during times when we had seen relatively lower incidences of claims. Obviously, we had kind of anticipated that there could be a possibility of an increase in claims in the subsequent quarters. And that's the reason we continued with the loss reserve, which is actually higher than what the actual reality would be. And that actually helped us to some extent, when you look at the subsequent development of claims that we have seen in the context of health claims. I think a similar approach is what we have followed, even during this current COVID surge that we are seeing on the second wave. I think we have been obviously monitoring the trends on the ground in terms of what's the increased number of intimations. And based on the current development, I think we believe, at least for the losses that would have happened until March '21, I think we have kind of adequately reserved for. And the approach to reserving from an IBNR's perspective will still continue to remain even as we get into FY '22. So the only point is, I think what Bhargav mentioned about, I think in the first wave, we did see a reduction in non-COVID health claims at the time when there was a peak surge in COVID cases. In this point, in the second surge, so far, I think while April is early trends, I think we'll have to see how that development of non-COVID cases continue. But the approach to reserving will pretty much remain the same as what we have done even in the earlier first wave.

[Udit Kariwala, Research Analyst]

And some competitive intensity in the motor segment as well?

[Bhargav Dasgupta, MD, CEO & Director]

Yes. So that was the other part. Yes. So this is something that we -- again, we talked about in Q3 earnings call, and that's kind of continued. So we were saying, if you remember that even last year, before the first wave of COVID, we were saying that the OD rates are completely out of sync with what it needs to be. And we needed a price increase, obviously, because of COVID, the frequencies dropped, so we didn't need it. And we started saying that by Q4 this year that we needed a price increase. So we -- if you see our Q4 numbers, we've turned a bit more cautious on the motor side, particularly in private car. Simply because we believe the OD segment is under stress. So what we're doing is, as a company, we've been pushing for more sustainable pricing, focusing on where we tighten underwriting. We don't believe that the market can sustain at these levels, and we are trying to push in terms of bringing in some more sensibility to the pricing. So the competitive intensity definitely is very elevated in -- but in private car in our estimate. So we are kind of pushing in terms of some price increases wherever feasible and some more tighter underwriting.

[Udit Kariwala, Research Analyst]

And focus on CV would continue, like you had mentioned that you'll try to ramp up that?

[Bhargav Dasgupta, MD, CEO & Director]

Yes. Our CV as a mix will -- if you see it increase from roughly about 14% to about 16%. So compared to the industry mix where CV will be more than 40%, I don't have the full year's number because all numbers haven't come out, but would be maybe 40%, 45%. We are much lower in terms of the category. But within that, the segment that we've identified, I think the calls, we believe, have been right, and we are continuing to focus on those segments and grow that segment in a calibrated manner. We're obviously not going to go back to those kinds of market shares.

[Operator]

[Operator Instructions] The next question is from the line of Shreya Shivani from CLSA.

[Shreya Shivani, Research Analyst]

Sir, I just wanted -- most of my questions are answered. Just wanted a bookkeeping question. If you can tell me the exact loss ratio for the different segments of health, like corporate was 93% in FY '20 and retail indemnity was at 63%. So can you tell me the equivalent of that in FY '21 -- for FY '21?

[Bhargav Dasgupta, MD, CEO & Director]

Gopal, you want to take that?

[Gopal Balachandran, CFO & Chief Risk Officer]

Yes. So if you look at the aggregate loss ratios across different segments, I think just give me a second. I think I can give those numbers. Shreya, in the meantime, do you have any other question to ask?

[Shreya Shivani, Research Analyst]

Yes. I was just -- maybe it's a basic question, but I was just trying to see that the -- you guys have talked about the strengthening of the URR, right, which is basically the net on premium minus net written premium. But wasn't -- didn't you guys take a bigger strengthening -- I mean take a bigger change in that in the Q as well? It's lesser for 4Q, right?

[Gopal Balachandran, CFO & Chief Risk Officer]

Yes, let me answer the first question first. I think in terms of the loss ratios, if you look at -- I'm just right now giving you full year numbers. If you see for the -- just the health book, the aggregate loss ratios for last year was about 83.6%. The current year loss ratio is at 89.6%. And within that, the employer/employee or, let's say, the group health portfolio is something which has seen a loss ratio, last year at about 91.1%, this year at about 93.4%. And on the retail indemnity segment, the loss ratio is -- last year was about 70%. And this year, the loss ratio is at 81.7%.

[Shreya Shivani, Research Analyst]

81%?

[Bhargav Dasgupta, MD, CEO & Director]

Yes.

[Shreya Shivani, Research Analyst]

Okay.

[Gopal Balachandran, CFO & Chief Risk Officer]

And to your second point in terms of strengthening of reserves, I think that is exactly what we spoke about. I think when we kind of looked at relatively lower incidences of claims, even at that point of time, I think anticipating that there will be actually an increase in incidence of claims in the subsequent periods. We were able to carry a conservative approach to providing for loss reserves. And on that basis, we had carried for claims, which were higher than, let's say, what the actual reflection was. And on the similar lines, I think across lines of businesses, I think we keep looking at what is the portfolio development that we see with respect to development of losses. And on that basis, I think we continue to provide for appropriate losses or IBNR as is required in respect of their respective lines of businesses.

[Shreya Shivani, Research Analyst]

Okay. And if you can answer one last question. Since we're talking about the commercial vehicle and how you guys have maintained your cautious stance over there. Is it still around 15% of motor book, as in like in the 9 months, commercial was at 15% and 2-wheelers were 27% and...

[Gopal Balachandran, CFO & Chief Risk Officer]

It was 16%. If you look at about -- for the full year, the last year full year, the number on the commercial vehicle was roughly about 15%. That number, if you see for the current year is about 16% of the overall motor book.

[Shreya Shivani, Research Analyst]

Okay. And 2 wheelers is at around 29% -- was at 29% last year?

[Gopal Balachandran, CFO & Chief Risk Officer]

2-wheeler is almost maintained at similar levels...

[Bhargav Dasgupta, MD, CEO & Director]

Slightly lower, it's about, I think, 27%, 28%.

[Operator]

The next question is from the line of Rishi Jhunjhunwala from IIFL.

[Rishi Jhunjhunwala, Research Analyst]

Just one, firstly, question on this excess expense management charge that we have taken from shareholders to policyholders' account. And I guess this time around, there has been a bigger charge on motor. I think last year, we had health, retail as well. Just wanted to understand potential repercussions in case this remains persistent given that there -- it has been second year that this has happened. And also, just wanted to understand what is the reason and how could be remediated?

[Gopal Balachandran, CFO & Chief Risk Officer]

So Rishi, if you look at -- so far as the requirement of regulation on the expense of management is concerned, the regulator requires us to be compliant at an aggregate level as a company. And we are in compliance with those limits on expense of management as it's laid down by the regulator. And insofar, as compliance is concerned, I think we are in absolute compliance to what the requirement of regulation is. Having said that, I think what the regulator has also put out as a part of the regulation is they kind of divided the overall businesses into multiple subsegments. And they have also kind of given limits on what could be the allowable spend insofar as those individual sublines is concerned. And on that, when you look at the numbers for the full year, you're right. In certain lines of businesses, the actual expense of management relative to, let's say, what the allowable spends are, we are in excess of those limits. And in accordance with the requirement, the regulator expects us to reflect those amounts, which are in excess of those limits as a part of the profit and loss statements separately. And that's exactly what we have done insofar as any of those expenses is concerned. And the third point is, I think, obviously, at the end of the day, while our attempt will be to try and allocate as much of expenses that is possible to directly associate with the particular product. But equally, there is always an element of cost, which tends to get allocated between different segments. Hence, to that extent, we will also have an element of allocation, which will have a play insofar as determination of alternate amounts are concerned. And finally, I think there are certain lines of businesses that develop certain costs. It's largely of fixed nature. And to the extent you see some of those lines, not necessarily exhibiting revenues as much as what we would have expected. Then obviously, given those fixed costs will theoretically get reallocated to the other lines of businesses. So hence, I think it's a factor of all of those. But to answer to your point, insofar as compared to the limits on expense of management is concerned, we are in compliance with the requirement of regulation.

[Rishi Jhunjhunwala, Research Analyst]

Okay. And second question is on health, right? So of course, this year, we had an issue around 3Q and 4Q, especially you are sort of ICICI Bank. But if you really look at our overall health portfolio, there is still a decline? And I guess, you can correct me if I'm wrong, the bank-related portfolio is probably 5%, 6% of overall GDPI on the health side. So -- but we have seen about a 7% decline this year compared to industry growing at about 13%. And it doesn't look like we have gone more cautious on the corporate. So can you just break it down in terms of where growth has come? Where it hasn't? And what can we potentially do which could accelerate it faster than the initiatives that we are already taking, given that we are in a phase where health insurance has got a catalyst in terms of this pandemic and potentially, we are losing some share on that?

[Bhargav Dasgupta, MD, CEO & Director]

So this number has a PA and travel into it, right, Gopal? Maybe you can...

[Gopal Balachandran, CFO & Chief Risk Officer]

That is correct. So Rishi, when you look at the numbers where you're seeing, let's say, possibly from the results presentation, the number that you're seeing of about INR 33.32 billion, which was the overall health plus PA and travel put together, going down to about INR 30.21 billion. It has an element of personal accident and travel. And travel, as we all know, at this point of time, relative to what we had seen last year, there has been a significant decline in the extent of travel. So that number has obviously seen an impact. In fact, travel was almost about INR 135 crores. INR 1.35 billion in that number last year. And that number this year is about INR 0.52 billion. So there is already INR 100 crores reduction that we have seen in the travel segment. And equally, I think on the personal accident side, we have seen a reduction in the numbers relative to what we had seen in the last year. Health, on a stand-alone basis, I think we have been -- largely been able to receive at a flattish level. This is a combination of both the indemnity as well as the benefit component put together. And indemnity, as we have kind of put out also in the presentation, the indemnity book has actually seen a reasonable growth of 22%. It is the health benefits segment, which was largely a contribution of both the decision that we spoke about with respect to ICICI Bank focusing on that core building of the book. And at the same time, particularly in the initial first half, we had also seen the other distribution partnerships that we had. The level of disbursement that we have seen even with respect to those franchises, obviously, the disbursements are not as much as what we would have seen in the previous period. So hence, the combination of all is what you are seeing when you look at the aggregate numbers in terms of the decline. But in terms of focus, I think as we explained, health indemnity continues to be an area of opportunity, and that's an area where we are making continued investments. And even on the health benefit side, while we will take some time as what we explained, if it all, we'll kind of cover up for the shortfall of what ICICI Bank has been contributing. But some of the other distribution tie-ups, given, particularly since quarter 3 and quarter 4 onwards, we have seen level of disbursements getting picked up in some of the other partnerships that we have. And those contributions have seen quite a reasonable growth in respect of the focus that we have. So hence, health is an area, continues to be an area of opportunities the way we see it.

[Rishi Jhunjhunwala, Research Analyst]

Great. And just one last thing on third-party loss ratios. If you can remind me, I'm sorry, if I'm asking again. But this quarter, the loss ratios have gone up because you've strengthened the provisions related to past claims or related to the claims that you've -- or policies that you've written this year?

[Gopal Balachandran, CFO & Chief Risk Officer]

Yes. So as we explained, Rishi, I think as we kind of put out as a part of our opening remarks, what we are seeing is, I think there are court judgments. In fact, we have seen judgments coming in quarter 4 as well, where I think the extent of compensation that we have seen with respect of claims that is being awarded by courts to the claimants, we have clearly seen increasing trends of average claim sizes. And therefore, I think when we have looked at the possibility of the similar kind of average claim sizes going up even with respect to our outstanding book, we have looked at our existing book and seen that in the event if these judgments were to have an impact even with respect to the past book, we have reassessed those loss results. And on that basis, we have strengthened the reserves in quarter 4. And that's the reason why you see actually the motor TP loss ratios for quarter 4 reflecting a relatively higher number as what you would have seen in the previous quarters.

[Rishi Jhunjhunwala, Research Analyst]

So it doesn't...

[Bhargav Dasgupta, MD, CEO & Director]

If you look at our aggregate number -- hello?

[Operator]

Sir, sorry to interrupt. Mr. Jhunjhunwala?

[Rishi Jhunjhunwala, Research Analyst]

Yes. Yes. The management is speaking...

[Bhargav Dasgupta, MD, CEO & Director]

I was just -- adding to what Gopal said for Rishi. So Rishi, if you look at our aggregate, you'll see from the overall triangles that we've disclosed, you'll see the aggregate release this year will be a lower number than the aggregate release last year. I mean if you look at the numbers that we give out, you can figure out the release that we had last year. And you'll see aggregate release is less this year. We still have an aggregate release. But the release is less, so what Gopal is explaining is because there's been some recent judgments, Supreme Court judgments, that has come in, which is -- which we believe can increase the claims in future. So we've actually further adjusted some of the old book. And hence, the aggregate release is a bit less.

[Operator]

The next question is from the line of Sanketh Godha from Spark Capital.

[Sanketh Godha, Vice President]

Sir, standard on the motor third-party, again, I just wanted to understand, when you said the Supreme Court judgments have average ticket size of claims have gone up. So we -- increasing the severity, if you can quantify that number, I mean, what is the compensation difference? What you have incorporated in your numbers? And then that resulted into increase in the motor TP loss ratio substantially in the fourth quarter? And second thing, just wanted to know, this adjustment, as probably might have answered, but just wanted to confirm it again. That you have already provided for the entire outstanding claims what you have on your books, or this could be repeated going ahead also. So we are going to look 80% plus kind of a combined ratio, also the loss ratio in motor TP business going ahead? That's my first question. I have a health one, maybe after you answer this, I'll ask one.

[Bhargav Dasgupta, MD, CEO & Director]

So the second part, Sanketh, the approach that we've always had is that whenever we reserve, we have what we call a margin for adverse deviation. And that's our marginal safety, really. And then as we go along the year as the data comes through, we keep on releasing from that year if it is releasable. There is no change in that report. So we wouldn't take part of the increased provision because -- so a new event has come to the light because of this new judgment. So we will take only a little bit of that. So we've taken full amount of what we think is potentially going to hit us in future. Of course, it's an actual assumption. So we've taken the full hit. It's not a part hit. It might not be a full hit that we've taken in this quarter. As I said, for the entire aggregate because we have releases from other parts, in TP, we have to increase because of other reasons. But across other lines, we've had releases. So in aggregate, net of that provision increase, we've got a release again this year, but to a lesser extent than last year.

[Sanketh Godha, Vice President]

Okay, sir. Sir, but what was the severity increase as per your judgment in new...

[Bhargav Dasgupta, MD, CEO & Director]

Gopal, do you have the...

[Gopal Balachandran, CFO & Chief Risk Officer]

So Sanketh, I think, in general, what we have seen is, I think, obviously, it's an estimation that we have made at this point of time, but the expectation is that we should possibly see an increase in severity of almost close to about 20%. Relative to whatever would have been the earlier average claim sizes, we are likely to see an increase in severity of around 20%.

[Sanketh Godha, Vice President]

Yes. Why I am asking this question because we used to provide a inflation rate of 12% to 14%. So instead of coming 12% to 14%, it has come at 20%. So that's the reason we increased the numbers. That's the right way to think it, right?

[Gopal Balachandran, CFO & Chief Risk Officer]

That is exactly the way we have done. As Bhargav explained, I think the approach to reserving is what we obviously keep looking at loss development relative to the estimates that we have carried. And basis the incremental judgments that keep coming from courts from time to time, I think we have looked at what is the loss estimates that we already carry vis-à-vis the expectation that we have. And the recent judgment that has come in quarter 4, specifically, has made us to relook at our existing book. And as of now, I think the expectation is that it should possibly result into an increase in the average claim sizes by almost about 20%.

[Sanketh Godha, Vice President]

Got it, sir. Sir, sorry to harp on this point, but this adverse compensation was seen in death claim or it's seen across death and injury and property damage, too?

[Bhargav Dasgupta, MD, CEO & Director]

It will be for the death claims and the small value death claims. For the large value death claims, there may not be a big impact. There will be for the small ones, not for the injury cases. But the biggest impact will be in terms of the small value death claims.

[Sanketh Godha, Vice President]

Got it, sir. Sir, on health...

[Operator]

Mr. Godha, sir, sorry to interrupt, may I please request you to rejoin the queue for your follow-up, sir. We have people waiting for their turn. The next question is from the line of Santanu Chakrabarti from Edelweiss.

[Santanu Chakrabarti, Analyst]

My questions are twofold, actually, one is a small clarification. That relates to the expense account number, which has been reallocated from insured expenses into other expenses. I just wanted to clarify, that doesn't change your profit number in any way, right? That's just what the regulator would have allowed you to be booked as a direct expense of the business. Is that understanding right?

[Gopal Balachandran, CFO & Chief Risk Officer]

That's more a requirement of regulation. As I explained in certain sublines of businesses, in case if you see your actual arrived expenses is higher than the allowable limit, then the excess has to be separately reflected as a part of the P&L statement. But in the aggregate, the profitability numbers doesn't undergo any change.

[Santanu Chakrabarti, Analyst]

So that also influences the OpEx of your combined ratio, doesn't it?

[Gopal Balachandran, CFO & Chief Risk Officer]

No, it doesn't impact the combined ratios because the way the regulators asked us to reflect is if you see -- you will see an expenses other than those related to insurance business as a part of the profit and loss statement. And correspondingly, on the revenue side, in the revenue account, as a part of your other income, the secular amount is being reflected. So when we compute the combined ratios, the combined ratio already factors in for the expense of management that is a part of the operating expense number in the revenue account.

[Santanu Chakrabarti, Analyst]

Perfect. So not only does it not impact the bottom line, even the metric that you give out as a ratio, it's not impacted?

[Gopal Balachandran, CFO & Chief Risk Officer]

Absolutely.

[Santanu Chakrabarti, Analyst]

Now my second question. This relates to prices overall and perhaps more with regard to medical indemnity and a little bit in regards to motor. Now in medical indemnity, as you have been alluding to, non-COVID claim offset in the current cycle may not be as much of a relief as it was last time because perhaps the lockdowns are less for additive like perhaps a little less care to go after rather discretionary kind of expenditure? I understand all of that. But do you not see a set of circumstances where that may actually work out in your favor in terms of pricing? Because let me phrase the question this way. If today, if your pricing for your indemnity products across product classes, if it was 5% lower, what would be your growth number be in terms of volume, how much higher could it be? Do you see that demand is realistic or it is a function of your distribution structure? The reason I'm asking this is because I personally have an expectation that those prices are going to harden, mainly because of certain events facing some of your competitors.

[Bhargav Dasgupta, MD, CEO & Director]

Yes. So Santanu, it's a great question. First, part of the response is that I guess, as you know, and you've seen us, we plan for the worst and hope for the best. So all of these are hypothesis. Honestly, it's been very difficult to say whether we will have the same impact on non-COVID claims or not. We are baking in an assumption that it won't be, just to be conservative for 2 reasons. One is, last time, maybe the elective surgeries were delayed. Whether it will be delayed again this time or not, maybe it will not be. But one thing, do remember, there are these other claims, which are normal fever, et cetera. All of that, again, will disappear like last time. That will not be different than last time, is our hypothesis. But we are being a bit cautious in expecting or anticipating the same picture as last year. Whether it will not -- be or not so, only time will tell. We are anticipating a slightly more -- we are taking a slightly more conservative stance. Coming back to your question on elasticity, there is some amount of elasticity, which is a short-term impact. What I mean by that is that when you do a repricing, when you -- and we had that impact even this year when we repriced in Jan. First couple of months, we had some reduction in sales because the entire channel, the entire sales force, everyone has to gear up to talk about a higher price. And what happens in health insurance, indemnity insurance is that at least we, as a company, we generally don't take price increases every year. We took a price increase after quite a few years this time, which is a strategy that we will change going ahead. But that's what we've done in the past, which is that we took a price increase after quite a few years. So the increase was relatively high for certain customers. So when the increase is, let's say, 5%, 7%, I don't think there is any impact at an individual level also. But when the impact price increases, let's say, 30%, 40% for individuals, then they may have some impact. And when you do these price corrections after 5, 6 years, and you have a slab-based pricing model in India, then for those cutover age profiles, the increment could be very high. So there could be some elasticity for that -- just at those customers. But it's a short-term thing and then it kind of -- I mean, if you look at our March numbers, our health indemnity numbers have been very strong.

[Santanu Chakrabarti, Analyst]

Perfect. I mean, the reason I asked -- I'm asking this question, Bhargav, is that I am expecting a hardening price environment overall. So even if you participate there, I just want to understand the implication it could have for the revenue.

[Bhargav Dasgupta, MD, CEO & Director]

I think that could happen because the multi-line companies like us, we have some benefit in terms of set-off because of the motor claims, but the stand-alone companies don't have any set-off. And my sense is exactly what you're saying, there will be some need for price correction potentially for the industry.

[Operator]

The next question is from the line of Hitesh Gulati from Haitong Securities.

[Hitesh Gulati, Analyst]

Sir, Just a couple of questions about the mix of new cars and old cars in your motor owned [ bankers ].

[Bhargav Dasgupta, MD, CEO & Director]

I think our overall mix is 30%-70%...

[Gopal Balachandran, CFO & Chief Risk Officer]

Overall mix is now 30%, 70%, 80-ish.

[Bhargav Dasgupta, MD, CEO & Director]

Yes. 30%-70%.

[Hitesh Gulati, Analyst]

Can you please recall me what was the mix last year?

[Gopal Balachandran, CFO & Chief Risk Officer]

That was roughly about almost 40%-60%.

[Bhargav Dasgupta, MD, CEO & Director]

No, no, it was a bit lower, Gopal. It was about, I think...

[Gopal Balachandran, CFO & Chief Risk Officer]

38%-62%.

[Bhargav Dasgupta, MD, CEO & Director]

Yes, it was 36%, 37% was -- and 67% -- 60%, in that ballpark.

[Gopal Balachandran, CFO & Chief Risk Officer]

38%, 62% and 70%.

[Bhargav Dasgupta, MD, CEO & Director]

Last year was 38%, 62%.

[Gopal Balachandran, CFO & Chief Risk Officer]

Yes. Yes. Yes.

[Hitesh Gulati, Analyst]

Okay. Yes. And just last question, what is the mix of indemnity and benefits right now? It used to be 70% -- benefit used to be 70% historically. What would have that become now?

[Gopal Balachandran, CFO & Chief Risk Officer]

Given that, Hitesh, I think we have seen the benefits segment significantly being impacted on account of the discussions that we had. I think at this point of time, the indemnity will actually contribute to almost 65% or so. The benefit will contribute the balance.

[Bhargav Dasgupta, MD, CEO & Director]

Yes, it's actually reversed, in fact.

[Operator]

The next question is from the line of Deepika Mundra from JPMorgan.

[Deepika Mundra, Research Analyst]

Sir, I just wanted to understand your take on growth, given the headwinds that you're seeing in motor TP as well as in health to a certain extent. Do you feel we're in for another year of slightly slower growth like we've had this past year as well?

[Bhargav Dasgupta, MD, CEO & Director]

So that's a tough question. If you ask me the question 1 month back, I would have been a lot more optimistic about the growth. We were very bullish about the growth starting in this year. Obviously, when a second wave comes, it will have some impact, even -- vis-à-vis what we were anticipating even 1 month back. Our sense is that in spite of that, this year will not be like last year of a single-digit growth for the industry. Last year, we had a 5.2% growth in the industry. Our sense is that this coming year, in spite of this second wave of COVID, we will go back to maybe about between 12% to 15% growth for the industry. There is a bit of base effect. Again, that will help. And the base effect would have pulled the growth faster, up more, but it may not because of this second wave is our sense. But honestly speaking, this is what we are anticipating it. As you know, it depends on how things progress. We are making some hypothesis when we are saying this. We believe that, particularly in Maharashtra, it's probably the recent peak numbers. And we will hopefully see a reduction. We are also hoping that at the national level, we'll see a peak by May, and then we'll see a reduction. But if we're wrong on that count, then obviously, there could be some impact. But so our going-in hypothesis for next year will be low-teen growth for the industry.

[Deepika Mundra, Research Analyst]

Got it. And sir, just a follow-up on the motor TP slide. I mean, is the delay just procedural from the regulator? Or is it a quantum? Or is there something else that we should read into it in terms of not wanting to give a price hike given second wave, again, still similar to last year?

[Bhargav Dasgupta, MD, CEO & Director]

Difficult to -- your second guess. Our -- based on whatever conversations we are having, we believe that the authority understands that there is a need for increase. And hence, we are hoping that it will happen, it's a matter of timing.

[Operator]

Well, ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Bhargav Dasgupta for closing comments.

[Bhargav Dasgupta, MD, CEO & Director]

Again, thank you for joining. It's a Saturday evening. But more importantly, all of you take care stay safe. And see you over the quarter. Thank you.

[Gopal Balachandran, CFO & Chief Risk Officer]

Thank you so much.

[Operator]

Thank you. On behalf of ICICI Lombard General Insurance Company Limited, that concludes this conference. Thank you all for joining. You may now disconnect your lines.