Bajaj Allianz Q4 net up 44% Chennai floods dent FY16 net

Company settled 7,000 claims worth Rs 470 crore related to Chennai floods during year under review

Bajaj Allianz General Insurance's net profit increased by 44% to Rs 208 crore in the fourth quarter ended March 31.

The private sector non-life insurer had reported a net profit of Rs 144 crore in the corresponding period of the previous financial year.

The gross written premium was up 18% in the March quarter to Rs 1,730 crore from Rs 1,465 crore in the year-ago period.

Claim ratio improved, though marginally, in the reporting quarter by 20 basis points to 70.7%, whereas combined ratio came down to 94.3%.

Solvency ratio went up 69% to 251%, whereas assets under management rose to Rs 9,211 crore in the January-March quarter from Rs 7,859 crore in the year-ago period.

However, due to huge losses arising out of claims related to the Chennai floods in November-December 2015, the company's net income remained almost flat at Rs 564 crore for the 2015-16 financial year.

The company settled 7,000 claims worth Rs 470 crore related to Chennai floods during the year under review.

Gross written premium increased by 11% to Rs 5,901 crore in 2015-16 from Rs 5,301 crore in the previous financial year. The company reported a combined ratio of 99.3% during 2015-16.

In the last financial year, Bajaj Allianz scaled its operations by reaching out to over 400 new towns across India.

"A good fourth quarter coupled with growth in retail lines of business and our increasing footprint in newer geographies across the country were the key drivers for the company's overall growth," Bajaj Allianz General Insurance Managing Director and Chief Executive Tapan Singhel said.

"Company's profits have grown at a CAGR of 46% in the last five years while it paid claims worth over Rs 15,000 crore during the same period," he said.

The company is a joint venture between Bajaj Finserv Ltd, owned by Pune-based Bajaj Group, and Allianz SE, a European financial services firm.