Bajaj Finserv posts net loss of Rs 11.87 cr

CORPORATE SCORECARD

Bajaj Finserv posted a net loss of Rs 11.87 crore for the second quarter ended September 2008 on a consolidated basis, as compared with the net profit of Rs 47.73 crore in the corresponding quarter last financial year.

Explaining the loss, Managing Director Sanjiv Bajaj said the company had deployed resources to fund the growth of its life insurance business. The transfers to policyholder’s accounts are recognised as an expense in line with regulatory norms. The firm’s total income (on consolidated basis) for the quarter rose to Rs 92.37 crore from Rs 84.11 crore a year ago.

The general insurance business — Bajaj Allianz General Insurance Company — reported a 24 per cent rise in gross written premium at Rs 682 crore as against Rs 549 crore in July-September 2007. The net profit for this segment went up from Rs 22 crore to Rs 25 quarter. Market conditions continued to be challenging in teh second quarter. The discount on the corporate business stayed high and competition was intense in retail segment, the company said. The life insurance company — Bajaj Allianz Life Insurance Company — posted a 24 per cent rise in gross premium at Rs 2,477 crore. New business premium income, however, declined to Rs 1,187 crore from Rs 1,536 crore in July-September 2007. This segment posted a loss of Rs 23 crore compared to profit of Rs 58 crore a year ago.