Value of new business (VNB) margin at 17% in 9MFY19 contracted by 50bps qoq (vs. our estimate of 17.7%). This was mainly driven by an upward revision in cost estimates for the full year based on actual data for nine months. Given lower growth in Annualized Premium Equivalent (APE) in 3Q19 at Rs17.3bn (-12% yoy), operating leverage has been unfavorable, weighing in on margins negatively. The cost ratio moved up by 140bps yoy in 9M19 to 15.4%, while the cost ratio, just considering savings lines of business, decreased by 30 bps yoy to 12% in the same period. Persistency (ex-single premium) for the 13th month declined by 130bps yoy to 84.1% given...