Bajaj Finserv — Q2 FY25
Bajaj Finserv reported consolidated revenue growth of 30% YoY to ₹33,703 crore, with PAT up 8% YoY.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
42%Questions answered4Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
High priority
Combined ratios for retail and group health, and GDPI growth outlook.
Asked by Prakash Kapadia, Spark PMS
Management did not provide the requested combined ratios or thresholds, instead gave a historical strategy overview.
no specific combined ratio givenreframed to general strategydeferred to Tapan but no numbers
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Question
on the health side, typically, when we are, you know, looking to scale, what are the combined ratios on the retail and group side? Or what are thresholds for, you know, scaling that business? And what is your experience being on, you know, the government side of the health business?
S. Sreenivasan (CFO) and Tapan Singhel (CEO, Bajaj Allianz General Insurance)
If you look at Bajaj Finserv over the last twenty years... we have a very clear focus on underwriting profit throughout combined ratio and risk management. This business is not just about GDPI growth, it is a combination of growth and how you maintain profitability and risk is more critical to this business.
Evasive
Medium priority
Experience with government health business and GDPI growth drivers.
Asked by Prakash Kapadia, Spark PMS
Analyst asked for experience in government health; management declined to give specifics and spoke generally.
refused micro numbersno specific experience shared
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Question
We would be comfortable with the government health side of the business. What has been our experience? Obviously, you said it is getting different to the-
Tapan Singhel (CEO, Bajaj Allianz General Insurance)
As I said, I never give you, you know, in calls micro numbers. But broadly, as I said, if you look at the combined ratio as a company, it will still be among the lowest in the industry, no? And the ROE over 20% if I remove shareholders.
Evasive
High priority
Timeline for TP price hike from government.
Asked by Prakash Kapadia, Spark PMS
Management described the regulatory process but gave no indication of when a hike might occur.
no timeline givendescribed process without commitment
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Question
Any sense on, you know, the TP price hike? You know, it's been almost the third year now, no hike from the government. So any sense what and when is there any possibility of-
Tapan Singhel (CEO, Bajaj Allianz General Insurance)
We should not be blaming the government... The process of TP price hike is, data is sent, from the industry to the regulator... the regulator looks at it... then they recommend it to the ministry... As of now, I think for the past years, they did not see a merit in the increase, and that is what happened.
Partial answer
High priority
Motor business growth outlook and strategy for second half.
Asked by Mayank, Emkay Global
Management gave a conditional answer but did not provide a concrete outlook or numeric guidance.
no specific growth outlookconditional on price hike
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Question
The motor business has been growing at a slow rate. Any outlook on the second half of the year and any change in strategy which would be in the motor segment going forward?
Tapan Singhel (CEO, Bajaj Allianz General Insurance)
If we see a price hike coming in, then obviously our strategy would change. If we don't see, then we would be cautious in that business. And that's why you see our growth lower than the, you know, market growth in motor. But that is, as I said, this is fine with us.
Partial answer
Medium priority
Performance of credit life and GTI businesses in BALIC.
Asked by Mayank, Emkay Global
Management gave qualitative color but did not quantify performance of credit life or GTI.
no specific growth numbers for credit lifequalitative only
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Question
In BALIC, the group protection segment has grown by 25%. Just wanted some color on how the credit life and GTI businesses are performing for the H1.
Tarun Chugh (CEO, Bajaj Allianz Life Insurance)
I'm happy to say that today we have about eighty partners, and about... within this, about twenty-two banks with who we are already on the credit life side. But having said that, there has been, while we've grown because of a smaller base last year, the color is different shades within this business.
Partial answer
High priority
Challenges in retail health segment and loss ratio split by sub-segment.
Asked by Supratim Datta, Ambit Capital
Management explained challenges in retail health but refused to provide the requested loss ratio breakdown.
declined to provide loss ratio splitanswered challenges qualitatively
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Question
You highlighted the challenges in the retail health segment. Just wanted to understand, what are the real challenges in this industry, and how do you see these challenges being resolved going forward? And a second part would be, if you could split the loss ratios in the health segment between retail, group, and government.
Tapan Singhel (CEO, Bajaj Allianz General Insurance)
Please don't ask questions on micro level of claim ratio bifurcation. Those I would restrain my comment on because the business is strategic... Whatever is available in terms of the loss ratio, it is in the public disclosure of GI business.
Partial answer
Medium priority
Outlook for motor TP growth and offset strategies given weak auto sales.
Asked by Supratim Datta, Ambit Capital
Management gave a general view but did not detail specific actions to offset slowdown.
no specific offset strategyforward-looking statement caveat
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Question
Overall, the outlook for the TP segment seems to be weak based on commentary from some of the auto OEMs in the second half. How do you see this book growing going forward, and what could you do to offset this slowdown?
Tapan Singhel (CEO, Bajaj Allianz General Insurance)
If the TP price does not happen, and with the inflation of costs, that actually is the reason why you have to still look at segments which make sense and be there. As a company, we have a substantial share in the new vehicle sales, so I don't think I would see a huge difference from the current level of growth.
Answered
High priority
Sustainability of ULIP growth given market volatility and middle-income stress.
Asked by Supratim Datta, Ambit Capital
Management directly addressed the question, explaining the product mix shift and expressing confidence in demand.
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Question
Given how the markets have been over the last 15 days, and considering that some of the commentary from consumer companies suggest stress in middle income households, how do you see this ULIP growth sustaining going forward?
Tarun Chugh (CEO, Bajaj Allianz Life Insurance)
Last quarter has been an abnormally good month in terms of top line... we will be back to predominantly traditional product mix. That's where Bajaj has always been. I don't think it's a clear indication that people are kind of cash-strapped.
Declined
High priority
Impact of Allianz exit news and funding of potential buyout.
Asked by Dhaval, DSP Mutual Fund
Management declined to answer the question, stating no further communication at this stage.
refused to discussno further comment
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Question
Just on this news flow around Allianz looking at exit. How are we thinking about this event in terms of, let's say if we were to buyout funding of this event?
S. Sreenivasan (CFO)
I think you, as you correctly said, you missed my opening remark, in which I had said that we have made an announcement. It is Allianz's decision to exit. They have informed us. Beyond that, we have nothing more to communicate at this stage.
Partial answer
High priority
Timeline to reach VNB margins of listed peers despite regulatory changes.
Asked by Dhaval, DSP Mutual Fund
Management acknowledged delays but did not commit to a specific timeline or margin target.
no specific timelinequalitative commitment
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Question
Directionally, we wanted to get closer to the listed peer group in terms of VNB margins. Is that still on track in the next two years or so, FY 2027?
Tarun Chugh (CEO, Bajaj Allianz Life Insurance)
Yes, some delaying for a quarter, or two here and there, should be the only outcome of this. Directionally, we are committed to moving our NBM margins or... NBV is what we look at, and that is what you will see moving in directions.
Answered
Medium priority
Reasons for motor TP loss ratio improvement and impact on tariff hike probability.
Asked by Prayesh Jain, Motilal Oswal
Management directly explained the mix change driving loss ratio improvement and discussed the tariff process.
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Question
We've seen the motor TP loss ratio for you and one of your core competitors a significant improvement over the last couple of years. What are the reasons driving this improvement? And does the loss ratio play a meaningful role in tariff hike decisions?
Tapan Singhel (CEO, Bajaj Allianz General Insurance)
If you are changing the mix of class of business, which is higher loss ratio and you're moving the mix of businesses, you know, lower loss ratio... then overall your loss ratio will improve. That is how it goes, and you see that we have been doing it now for quite some time.
Partial answer
Medium priority
Impact of EOM on pricing pressure in crop and commercial lines.
Asked by Sanketh Godha, Avendus Spark
Management addressed their own position but did not answer whether EOM is causing industry-wide pricing pressure.
spoke only for own companydid not address industry-wide impact
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Question
You highlighted pricing pressure in crop and maybe in commercial lines like fire. Will you attribute this largely to EOM? Will this continue till next year?
Tapan Singhel (CEO, Bajaj Allianz General Insurance)
For Bajaj Allianz, I think we have been safely under the EOM norms, and still are very comfortable because we are much, you know, I think we are not even close to thirty, we are much below that. So I don't think there is any pressure on EOM to make a decision, from our perspective.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Market grew 4%, we grew 11% in Q2 | 11% | 30% | Understated vs filing |
| Non-motor long-term business advanced premium grew 20% | 20% | 30% | Understated vs filing |
| Non-motor long-term business GWP about 1000 cr last year | ₹1,000 cr | ₹33,703 cr | Understated vs filing |
| H2 non-motor long-term business GWP about 500 cr | ₹500 cr | ₹33,703 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.