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.
46%Questions answered5Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
What drove increase in motor TP loss ratios and reserving experience?
Asked by Mahek, Emkay Global
Explained quarterly aberration but did not give specific reserving experience details.
attributed to quarterly aberrationno specific reserving experience details
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Question
I just wanted to know what has driven the increase in the loss ratios for the motor TP segment, and if you could give us any color on the reserving experience.
Ramandeep Sahni, CFO, Bajaj Allianz General Insurance Company
If you look at some aberrations which are there in the quarter, essentially come because there is a lag between reported claims and when the IBNR gets adjusted by the actuary. But if you look at it on a nine-month basis, our actual loss ratios are lower than what it was in nine months last year. It's actually down from 79.5% to 77%.
Evasive
Medium priority
How does IRDAI's senior citizen health pricing cap impact Bajaj?
Asked by Mahek, Emkay Global
Gave general positive view but no specific impact on Bajaj's business.
no specific impact on Bajajgeneral industry commentary
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Question
IRDA had kind of published a circular capping the price tags in the health products to 10% for senior citizens. So just wanted to know your comments on how this impacts your business and overall how you look at the industry as well.
Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance Company
We welcome the regulations on that basis because if you look at the principle of insurance, it is to take care of societal need. ... It's a very balanced circular, which is very customer-focused in perspective of the senior citizens.
Answered
High priority
How has BALIC changed product mix strategy post new surrender regulations?
Asked by Mahek, Emkay Global
Provided specific details on product structure changes across all product lines.
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Question
If you could just give us some more details on how you have kind of changed the product mix strategy post the implementation of the new surrender regulations.
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company Limited
We've gone ahead and relooked at the entire product mix. We looked at the entire product structures that we have. So it's not just about the mix. It's about the structure for each product that we had. And we've gone ahead and changed practically all our products, including ULIP, PAR, and non-PAR.
Evasive
High priority
What is the near-term growth trajectory for BALIC? Will growth return to 20-25%?
Asked by Madhukar Ladha, Nuvama Wealth Management Limited
Refused to give growth numbers, only qualitative comments on recent months.
no forward guidanceno specific growth number
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Question
What I wanted to get a sense of is what the growth trajectory in the near term would shape up like. Should we take this quarter as an aberration with sort of growth returning back to the 20%-25% sort of level?
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company Limited
I'm not going to give any clear numbers because, as Srini made it clear, we do not make any forward-looking statements. ... December, we are back to a slight mild growth. January also, we are broadly in sync with a cohort of companies that we compare ourselves with.
Partial answer
Medium priority
How are distributor commission payouts working under new regulations?
Asked by Madhukar Ladha, Nuvama Wealth Management Limited
Answered from compliance perspective but did not address actual distributor payout practices.
focused on EOM compliancedid not address distributor behavior
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Question
I wanted to get a sense of how distributor commission payouts are working in this new sort of scenario, on the back end. I believe a lot of the large distributors still want upfront payment, whereas IRDAI and GI Council are not in favor of this.
Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance Company
The regulators do not stipulate how you pay commissions. It stipulates that you should be under the EOM, not that it controls how you pay commissions. And your company, I think Bajaj Allianz Company, the EOM is well below 30.
Evasive
High priority
Will BALIC have single-digit growth in next few quarters due to overhaul?
Asked by Nischint Chawathe, Kotak Institutional Equities
Did not quantify growth, only gave qualitative assurance.
no specific growth guidancevague reassurance
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Question
Does it mean that we sort of have a low, probably maybe a single digit or lower than industry growth going forward in the next couple of quarters, probably the next year as well?
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company Limited
I will not get onto which digit, single, double. I don't think we're used to single-digit kind of growth, so don't worry about that. We've always maintained the stand that we'll be going far faster than the rest of the industry.
Evasive
High priority
Can you quantify the impact of surrender value guidelines?
Asked by Nischint Chawathe, Kotak Institutional Equities
Did not provide a quantified impact, only qualitative comments.
no specific numberqualitative only
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Question
Just if you would quantify the impact of surrender value guidelines as some of your peers have done it?
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company Limited
If you look at what we've in Q3, in fact, our entire margin has gone up slightly. Slight, but yes, it's there, and particularly, we're seeing it in December. Hence, the impact we've now after discussions with all our bank partners, agents, deferral of commission, bringing commissions down in most cases, we've been able to get to a situation where this should be largely neutralized.
Answered
Medium priority
How is inward commission for long-term policies treated in P&L?
Asked by Nischint Chawathe, Kotak Institutional Equities
Clearly explained the matching principle for commission accounting.
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Question
If I look at the long-term policies, what was the ceding policy over here, and how is the inward commission for long-term policies treated in the P&L?
S. Sreenivasan, CFO, Bajaj Finserv Ltd
What we've tried to do is we've matched the outgo of commission with the inflow of commission. So because we were paying commissions upfront in most of the cases, our income also in terms of commission inflow is being received upfront so that there's a complete matching happening.
Answered
Medium priority
How is the health card business progressing? MAU/DAU?
Asked by Shubhranshu Mishra, PhillipCapital
Provided specific MAU and transaction numbers.
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Question
The health card that we have, how is that progressing if one can speak on the MAU and DAU for the health app?
Devang Mody, MD and CEO, Bajaj Finserv Health Ltd
We have around 180,000 transacting users coming every month on app and around 450,000 transacting users coming on our web assets. ... Last quarter, we have done around 22 lakh transactions.
Partial answer
High priority
Why reduce ULIP share if focus is on VNB growth, not margin?
Asked by Nidhesh Jain, Investec Capital Services
Initially gave a contradictory answer, then explained cost absorption but not VNB growth focus.
contradicted earlier statementfocused on margin not VNB growth
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Question
What is the rationale of reducing the share of ULIP? As you have articulated, the focus is on VNB growth and not on VNB margins. So why are we reducing the share of ULIP in the product mix consciously?
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Company Limited
Health does have a lower VNB margin than traditional clients, hence we are reducing focus on health. ... The cost absorption capability of ULIP is far lower. And hence, it does take time to be able to pay itself out in lean months.
Evasive
High priority
Why hasn't BAGIC gained market share despite strengths?
Asked by Nidhesh Jain, Investec Capital Services
Shifted focus to policy count instead of premium market share.
reframed to policy countdid not address market share in premium
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Question
Despite a lot of these strengths that we have, we have not been able to gain market share. ... Why is the market share trend and float growth trend broadly in line with market and not significantly ahead of market?
Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance Company
Bajaj issued close to INR 3.6 crores policies. ... In terms of the number of policies issued, Bajaj was the highest in the Indian market. ... It's balancing of all three to not only just pushing your weight and acquiring rapid in terms of position.
Answered
High priority
Why is BAGIC's motor TP loss ratio higher than peers? Is it conservatism?
Asked by Sanketh Godha, Avendus Spark
Provided specific metric (pay-to-ultimate) and explained conservatism leads to future releases.
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Question
If I look at other players in Motor TP, the loss ratios are meaningfully very low compared to what you guys are reporting. Just wanted to understand that is it too conservatism we are following, and therefore the likelihood of a release is very high going ahead?
S. Sreenivasan, CFO, Bajaj Finserv Ltd
One of the best ways ... is to look at the pay-to-ultimate. ... Roughly, when we checked last time in terms of seven years, our ratios were compared to the market significantly below. ... Net-net, if you see the cumulative reserves with the revised ultimate losses, you would still find that there is a surplus for us across most of the vintages.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Advance premium growth 24% in nine months | 24% | 10% | Overstated vs filing |
| Advance premium growth 26% last year | 26% | 10% | Overstated vs filing |
| Advance premium growth 19% year before | 19% | 10% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.