Bajaj Finserv is the holding company under which there are three key financial sectorbusinesses:
(i) lending through Bajaj Finance Ltd. (BFL) which is itself a listed company;
(ii) general insurance under Bajaj Allianz General Insurance Company Ltd. or BAGIC;and
(iii) life insurance under Bajaj Allianz Life Insurance Company Ltd. or BALIC. Inaddition there are wind-farm assets in Maharashtra with an installed capacity of 65.2 MW.
Let me briefly share with you the key achievements of your Company in FY2017 under BFLBAGIC and BALIC.
Lending: Bajaj Finance Ltd. (BFL)
Despite lower than expected growth and relatively tight credit demand BFL hasdelivered excellent results and has emerged as one of the leading non-banking financialcompanies (NBFCs) of India. Here are some of the numbers:
Assets under management increased by 36% to H 60194 crore.
Receivables under financing grew by 33% to H 56832 crore.
Total income rose by 36% to H 10003 crore.
Profit before tax was up by 43% to H 2818 crore.
Profit after tax rose by 44% to H 1837 crore.
Loan losses and provisions were at H 818 crore. Even so BFLs netnon-performing assets at 0.44% was among the lowest in the NBFC industry.
Capital adequacy as on 31 March 2017 was 20.30% which is well above the RBInorms.
Bajaj Allianz General Insurance Company Ltd. (BAGIC)
BAGIC is a composite insurer offering various types of general insurance includingmotor marine health and various forms of corporate insurance. It continues to be amongthe most profitable general insurers vis-a-vis peers in the public and private sectors ofcomparable size. It has one of the lowest combined ratios in the industry acombined ratio below 100% indicates that the company makes profits from its insuranceoperations. For FY2017 it had a combined ratio of 96.8% reflecting a sound balancebetween growth and profitability. Its solvency margin remains healthy and well above theminimum required by regulations.
BAGICs results for FY2017 were as follows:
Gross written premium (GWP) including reinsurance accepted was H 7687 croreversus H 5901 crore in FY2016.
BAGIC maintained its market share at 6.7% excluding specialised and standalonehealth previous years figure of H 4224 crore. insurers.
Net earned premium for FY2017 was H 4937 crore an increase of 17% over the
10 million policies were issued in the year versus 8.4 million in FY2016.
Profit before tax was up by almost 40% to H 1078 crore.
Profit after tax increased by nearly 29% to H 728 crore.
BAGICs solvency ratio was 261% which was well above the regulatorymandate of 150%.
l Return on average equity was 23.0% or 50 basis points higher than the previousyear.
Bajaj Allianz Life Insurance Company Ltd. (BALIC)
Due to some key restructuring of business priorities and channels BALIC has also donereasonably well for FY2017 as the figures below indicate.
Gross written premium (GWP) was H 6183 crore 5% better than the previous year.l New business (NB) premium grew by 14% to H 3290 crore.
BALICs assets under management (AUM) grew by 12% to H 49270 crore as on31 March 2017.
Policyholders surplus increased by 22% to H 483 crore.
Shareholders profit after tax decreased by 5% to H 836 crore.
Net worth for the company as on 31 March 2017 was H 8476 crore compared to H7631 crore a year earlier.
Among the three key businesses of your Company BFL continues to performextraordinarily well yet again delivering outstanding industry-beating performanceas it has over the last few years. BAGIC has also done well. And having begun toproactively deal with some of its past business challenges BALIC too has produceddecent results that suggest it is well on the road to profitable growth.
With you I wish all three companies even better performance in FY2018.
Thank you for your support.
17 May 2017