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 listedcompany; (ii) general insurance under Bajaj Allianz General Insurance Company Ltd. orBAGIC; and (iii) life insurance under Bajaj Allianz Life Insurance Company Ltd. orBALIC. The insurance businesses are unlisted. In addition there are wind-farm assets inMaharashtra with an installed capacity of 65.2 MW.
Let me briefly share with you the key achievements of your Company in FY2018 under BFLBAGIC and BALIC.
Lending: Bajaj Finance Ltd. (BFL)
In a tough year where real GDP is expected to have grown by 6.6% less than the7.1% achieved in FY2017 and 8.2% in FY2016 BFL has continued to deliveroutstanding results.
Standalone assets under management (AUM) increased by 34% to Rs.80444 crore.Consolidated AUM rose by 40% to Rs.84033 crore.
Total income rose by 33% to Rs.13329 crore.
Profit after tax also increased by 44% to Rs.2647 crore.
BFL's net NPA at 0.38% was among the lowest in the NBFC industry.
Capital adequacy as on 31 March 2018 was 24.71% which was well above the RBI norms.
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 insurances. It ranks among the moreprofitable general insurers vis-a-vis peers of comparable size. Its combined ratio of92.3% - a ratio below 100% indicates that the Company's core insurance business isprofitable - is among the best in the industry.
BAGIC's results for FY2018 were as follows: l Some 13 million policies were issued inthe year versus 10 million in FY2017. l Gross written premium (GWP) rose by 23% toRs.9487 crore. l Net earned premium grew by 23% to Rs.6059 crore. l Profit after taxincreased by 27% to Rs.921 crore.
l Solvency margin as at 31 March 2018 stood at 276% which was well above theregulatory minimum margin of 150%.
l Return on average equity was 23% same as the previous year.
Bajaj Allianz Life Insurance Company Ltd. (BALIC)
BALIC has also done reasonably well for FY2018 recording strong growth in newbusiness as the figures below indicate.
l Individual rated new business (NB) premium increased by 38% to Rs.1397 crore. l NBpremium grew by 29% to Rs.4291 crore. l Gross written premium (GWP) grew by 23% toRs.7578 crore. l 13th month persistency saw improvement: up at 77% versus 68% in FY2017.l Assets under management (AUM) grew by 5% to Rs.51970 crore as on 31 March 2018. lProfit after tax was Rs.716 crore.
l Solvency margin as at 31 March 2018 was 592% which was well above the regulatoryminimum margin of 150%.
I am also pleased to share with you several pieces of good news.
Firstly BFL and BAGIC have again had record years BFL has recorded its highestever assets under management and profit after tax while BAGIC has registered its highestever gross written premium and profit after tax.
Secondly for the first time since their incorporation BAGIC and BALIC have declareddividends of 100% and 70% respectively.
Finally your Managing Director Sanjiv Bajaj has been selected by a prestigious juryas the Ernst and Young (EY) Entrepreneur of the Year for India 2017'. Mycongratulations to him and BFS on this award.
So as you can see all the cylinders are firing. BFL continues to performextraordinarily delivering industry beating performance. BAGIC has also done verywell. And BALIC has stabilised to produce growth with profit.
I hope that we will see even better performance next year.
Thank you for your support.
17 May 2018