Bajaj Finserv — Q3 FY24
Bajaj Finserv reported a strong Q3 FY24 with consolidated total income up 34% to INR 29,038 crore and PAT up 21% to INR 2,158 crore.
bullish
high
✓ 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.
54%Questions answered4Evaded / deflected12Questions audited
Evasive
High priority
Why motor growth slowed in Q3 and outlook for crop and government health.
Asked by Sanketh Godha, Avendus Spark
Management gave a generic strategic answer without addressing the specific cause of the slowdown.
no specific reason givenreframed as strategic flexibilityno numbers
Read the exchange
Question
if I look at third quarter growth in motor, there is a sharp slowdown in the numbers... Just wanted to understand that the two-wheeler market share gain story... now the base effect kicking in...
Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance Company
when we see an opportunity, we will be aggressive in some segments. Sometimes we don't see an opportunity, we will now slow back... This quarter, motor has come down. Next quarter, it may again pick up...
Partial answer
High priority
Are motor TP and OD loss ratio improvements sustainable?
Asked by Sanketh Godha, Avendus Spark
Management discussed reserving strength but did not directly confirm if the improved loss ratios are sustainable.
no explicit yes/no on sustainabilitytechnical discussion without commitment
Read the exchange
Question
motor TP and motor OD loss ratios have improved in the current quarter. Are these numbers sustainable?
Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance Company
OD loss ratios, at 62%, it's a short term... TP being long term, has a lot of play on reserves. If you look at our reserves, it's among the best in the industry again.
Evasive
High priority
Impact of proposed surrender charge norms on life VNB and margin pressure.
Asked by Sanketh Godha, Avendus Spark
Management declined to quantify impact, calling the proposal speculative and not imminent.
dismissed as speculativeno quantificationdeferred to industry discussions
Read the exchange
Question
the natural impact of the surrender charges on the life insurance, the proposed norms. How do you see it? And if you can possibly quantify out of the total VNB what we report, what is sourced probably from surrender pool...
S. Sreenivasan, Chairman, Bajaj Finserv Limited
that is a draft proposal floated by the regulator... I don't think there is consensus yet as to whether that will happen or when it will happen or if at all it will.
Partial answer
High priority
Is margin pressure due to product mix or product-level compression?
Asked by Sanketh Godha, Avendus Spark
Management acknowledged squeeze but did not quantify the split between mix and product-level compression.
no split between mix and product-levelattributed to macro rates
Read the exchange
Question
the current margin pressure... should I attribute largely to product mix change or at product level also we are seeing a margin pressure...
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company
there has been some squeeze versus last year... when the rates of its deposits and the G-Secs tend to narrow... we've had a flattish margin, I'd say, for the nine months and for Q3 also.
Answered
Medium priority
Axis Bank contribution and competitive pressure from Tata in that channel.
Asked by Sanketh Godha, Avendus Spark
Management provided specific numbers on Axis contribution and confirmed market share was maintained.
Read the exchange
Question
how much Axis contributes, what's our market share, and are you seeing any pressure with the Tata being available on Axis Bank channel...
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company
Axis Bank last year... used to contribute 26% of our business. This year it's 23%... we've been the fastest growing as a company... we maintained our market share.
Answered
Medium priority
Strategic rationale for acquiring TPA Vidal Healthcare.
Asked by Nishant Shah, MLP
Management clearly explained the strategic rationale and how it fits into the health platform.
Read the exchange
Question
on this acquisition of TPA. Could you talk about that a bit? Like, how do you see this acquisition? Is it more for internal consumption? Is it a new business line...
Devang Mody, Director and CEO, Bajaj Finserv Health Limited
with acquisition of Vidal, we get access to healthcare spends in hospitalization... it's a strategically logical next step... we will be unique in unique position to service consumer.
Partial answer
Medium priority
Will Axis Bank's investment in Max further reduce wallet share?
Asked by Nishant Shah, MLP
Management said no current drop but admitted threat without giving a forward view.
acknowledged threat but no specific outlookno commitment on stabilization
Read the exchange
Question
now that Axis is becoming more prominent as an investor in Max, do you worry that there is a further decline in wallet share or do you think it stabilizes at 23%?
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company
there is no, currently, there is no drop on wallet share... this can be under threat... we will not be dependent on one relationship.
Answered
Medium priority
Are banks prioritizing deposits over insurance due to liquidity tightness?
Asked by Nishant Shah, MLP
Management acknowledged the dynamic and explained it is not new, without dodging.
Read the exchange
Question
any scope of the banks trying to prioritize deposits over cross-selling insurance... until the liquidity issues ease a bit?
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company
the banks ultimately have been always prioritizing the bank core products than third-party products all throughout... it's not the first time we are seeing pressure on deposits...
Answered
Medium priority
Why expense ratio increased and outlook going forward.
Asked by Swarnabha Mukherjee, B&K Securities
Management explained the reasons for the increase and gave a comfortable range.
Read the exchange
Question
the expense ratio looks a bit higher this quarter... how to look at the expense ratio and how should we think about it going?
Ramandeep Singh Sahni, CFO, Bajaj Allianz General Insurance Company
on NWP terms, it's moved up by 1%... largely it's happened because... quarter three, that business was on the lower side... we are well in control on our expenses.
Evasive
Medium priority
Will commercial lines growth peak and retail lines compensate?
Asked by Swarnabha Mukherjee, B&K Securities
Management avoided answering whether retail would compensate, instead saying they don't balance.
did not address compensationreframed as not balancing
Read the exchange
Question
since commercial lines have been doing quite well... would we be considering that we'll see a higher growth number in the retail lines... to compensate...
Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance Company
the commercial space saturation, I don't think is going to happen so soon... we don't try to balance... we would push aggressively there.
Evasive
Medium priority
Split of loss ratio between retail and group health, and retail health growth strategy.
Asked by Supratim Datta, Ambit Capital
Management refused to give the split and compared growth to a different peer group.
declined to provide splitcompared to GI industry not SAHI
Read the exchange
Question
could you give me a split of the loss ratio between the retail and the group health business? ... on retail health, the growth... is lower than what the SAHI are doing...
Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance Company
no, I don't think we give individual micro-level splits and loss ratios... our growth is not lower than the industry growth... we are actually above the industry growth in retail health also.
Answered
Medium priority
Reason for strong direct channel growth and commission changes in multi-insurer channels.
Asked by Supratim Datta, Ambit Capital
Management explained the drivers of direct channel growth and confirmed no commission changes.
Read the exchange
Question
over the last two quarters, the growth in the direct channel has been very strong... what has changed... have the commissions in the different channels changed?
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company
the core reason has been really where we run this business, the quality of the team... the data and technology piece... we should expect that Bajaj Direct shall be the fastest growing business.