Life Insurance VNB
INR 405 crore
+59% YoY
Highest-ever value of new business for Bajaj Life, driven by retail protection and group protection growth.
BAJAJFINSV
Diversified
04 Feb 2026
Bajajfinsv Ltd — Q3 FY26
Bajaj Finserv reported a strong Q3 FY26 with consolidated total income up 24% YoY to INR 39,708 crore and PAT (before exceptional items) up 32% YoY to INR 2,936 crore.
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
Bajaj Finserv reported a strong Q3 FY26 with consolidated total income up 24% YoY to INR 39,708 crore and PAT (before exceptional items) up 32% YoY to INR 2,936 crore. The life insurance business delivered its highest-ever VNB of INR 405 crore (+59% YoY) with NBM expanding to 19% (vs 15.1% last year), driven by the successful Bajaj Life 2.0 strategy. General insurance maintained a healthy combined ratio of 97.9% (vs 101.1% last year), though underwriting loss widened due to labor code impact and upfront acquisition costs. Lending subsidiaries BFL and BHFL posted robust AUM growth of 22% and 23% respectively. The Allianz stake buyout was completed, strengthening group control. Guidance points to continued margin expansion in life insurance and resumption of revenue growth at Bajaj Markets from Q4. Key risk: motor OD loss ratios remain elevated due to pricing pressure and GST-related IDV reduction, which may persist if industry pricing correction is delayed.
बजाज फिनसर्व ने वित्त वर्ष 2025-26 की तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कुल आय पिछले साल की तुलना में 24% बढ़कर 39,708 करोड़ रुपये हो गई। मुनाफा (एकमुस्त आइटम को छोड़कर) 32% बढ़कर 2,936 करोड़ रुपये रहा। जीवन बीमा कारोबार ने सबसे ज्यादा नया मूल्य (VNB) 405 करोड़ रुपये बनाया, जो 59% ज्यादा है। सामान्य बीमा का क्लेम-खर्च अनुपात 97.9% रहा, जो पिछले साल से बेहतर है। कर्ज देने वाली कंपनियों बीएफएल और बीएचएफएल की संपत्ति में 22% और 23% की बढ़ोतरी हुई। एलियांज हिस्सेदारी खरीद पूरी हो गई। आगे जीवन बीमा में मुनाफा बढ़ने और बजाज मार्केट्स में कारोबार सुधरने की उम्मीद है। मोटर बीमा में नुकसान का खतरा बना हुआ है।
Key Numbers
Life Insurance NBM
19%
+390bps YoY
New business margin expanded from 15.1% last year, reflecting improved product mix and cost efficiencies.
General Insurance Combined Ratio
97.9%
-320bps YoY
Improved from 101.1% last year, among the lowest in the multiline market, indicating strong underwriting discipline.
Bajaj Finserv AMC AUM
INR 30,000 crore
N/A (crossed milestone)
Fastest to cross INR 30,000 crore AUM in ~2.5 years; equity mix at 56%, non-group share at 87%.
What Changed vs Last Quarter
NEW
Bajaj Markets revenue growth to resume from Q4 FY26
Revenue growth expected to resume from Q4 onwards after software migration to SFDC is completed in Q3.
NEW
Bajaj Finserv AMC to launch AIF and PMS by end FY27
Plans to start alternative investment funds and portfolio management services targeting high-net-worth clients, subject to regulatory approvals.
NEW
Bajaj Life setting up pension fund and GIFT City branch
Process of regulatory approvals initiated for a pension fund management business and a branch in GIFT City.
UPDATED
Life insurance VNB margin expansion to continue, but taper
Management expects margin expansion to continue but at a slower pace due to base effects; GST impact pushed back margin targets by 2-3 quarters.
DROPPED
Life insurance growth to re-accelerate in H2
After four quarters of flattish top line, management expects significant growth trajectory above industry from Q3 onwards, supported by GST tailwinds.
DROPPED
GST ITC impact to be mitigated in two quarters
Management expects to manage the GST input tax credit burden through product restructuring and distributor negotiations within the next two quarters.
DROPPED
BFL MSME AUM growth to be 10-12% for FY26
Bajaj Finance cut unsecured MSME volumes by 25%, leading to full-year AUM growth of only 10-12% in that segment.
NEW RISK
Motor OD loss ratio elevated due to pricing pressure and GST impact
Motor own-damage loss ratios remain high across the industry due to IDV reduction from GST and rising repair costs; pricing correction may take time.
NEW RISK
Life insurance persistency dips across cohorts
Persistency ratios declined in line with industry trends; management acknowledged the issue and is working on it, but it could pressure future renewal premiums.
NEW RISK
Competition intensity in fire and commercial lines leading to pricing softness
Fire insurance pricing has softened due to good loss ratios and no major catastrophes, which could pressure margins if loss ratios revert.
RISK GONE
Elevated credit costs in unsecured MSME and two/three-wheeler segments
BFL's net losses and provisions were up 19% YoY, with credit costs elevated in MSME and two/three-wheeler segments, though management is cutting volumes.
RISK GONE
GST ITC impact on life insurance margins
The loss of input tax credit on GST is expected to impact NBM by ~450bps annualized if unmitigated. Management is working on mitigation but impact may persist for two quarters.
RISK GONE
Motor OD loss ratio spike
Motor OD loss ratio increased to 71% in Q2, above historical trends. Management termed it a quarterly blip but it bears watching.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q3 FY25
Allianz's intention to exit the JV is at preliminary stage; no details provided, creating strategic uncertainty.
Mentioned in Q3 FY25, Q4 FY25
After a muted H1 due to high base and agency channel reset, growth is expected to recover in the second half of FY26.
Mentioned in Q2 FY25, Q4 FY25
Management expects VNB margin expansion to accelerate, with benefits from cost actions and product mix fully playing out by FY27, but visible from H2 FY26.
Management Guidance
Life insurance VNB margin expansion to continue, but taper
Management expects margin expansion to continue but at a slower pace due to base effects; GST impact pushed back margin targets by 2-3 quarters.
Management guidance marginsBajaj Markets revenue growth to resume from Q4 FY26
Revenue growth expected to resume from Q4 onwards after software migration to SFDC is completed in Q3.
Management guidance revenueBajaj Finserv AMC to launch AIF and PMS by end FY27
Plans to start alternative investment funds and portfolio management services targeting high-net-worth clients, subject to regulatory approvals.
Management guidance expansionBajaj Life setting up pension fund and GIFT City branch
Process of regulatory approvals initiated for a pension fund management business and a branch in GIFT City.
Management guidance expansionKey Risks
Motor OD loss ratio elevated due to pricing pressure and GST impact
Motor own-damage loss ratios remain high across the industry due to IDV reduction from GST and rising repair costs; pricing correction may take time.
medium · analyst_questionLife insurance persistency dips across cohorts
Persistency ratios declined in line with industry trends; management acknowledged the issue and is working on it, but it could pressure future renewal premiums.
medium · management_commentaryGeneral insurance underwriting loss widened despite improved combined ratio
Underwriting loss increased to INR 137 crore from INR 43 crore last year, impacted by labor code charge and higher acquisition costs on new business.
low · data_observationCompetition intensity in fire and commercial lines leading to pricing softness
Fire insurance pricing has softened due to good loss ratios and no major catastrophes, which could pressure margins if loss ratios revert.
low · analyst_questionNotable Quotes
We are possibly among the top five to six companies, the only one which is truly diversified.
The combined ratio for Bajaj General will be among the lowest in the multiline market, with the ROE reasonably above 22%, excluding the surplus capital at 200% solvency.
We may not necessarily focus just on growth on agency. This is just the strategy is getting cooked as we go.
Frequently Asked Questions
What was Bajajfinsv's revenue in Q3 FY26?
Bajajfinsv reported revenue of ₹39,708 Cr in Q3 FY26, representing a +24% change compared to the same quarter last year.
What guidance did Bajajfinsv management give for FY27?
Life insurance VNB margin expansion to continue, but taper: Management expects margin expansion to continue but at a slower pace due to base effects; GST impact pushed back margin targets by 2-3 quarters. Bajaj Markets revenue growth to resume from Q4 FY26: Revenue growth expected to resume from Q4 onwards after software migration to SFDC is completed in Q3. Bajaj Finserv AMC to launch AIF and PMS by end FY27: Plans to start alternative investment funds and portfolio management services targeting high-net-worth clients, subject to regulatory approvals. Bajaj Life setting up pension fund and GIFT City branch: Process of regulatory approvals initiated for a pension fund management business and a branch in GIFT City.
What are the key risks for Bajajfinsv in FY27?
Key risks include Motor OD loss ratio elevated due to pricing pressure and GST impact — Motor own-damage loss ratios remain high across the industry due to IDV reduction from GST and rising repair costs; pricing correction may take time.; Life insurance persistency dips across cohorts — Persistency ratios declined in line with industry trends; management acknowledged the issue and is working on it, but it could pressure future renewal premiums.; General insurance underwriting loss widened despite improved combined ratio — Underwriting loss increased to INR 137 crore from INR 43 crore last year, impacted by labor code charge and higher acquisition costs on new business.; Competition intensity in fire and commercial lines leading to pricing softness — Fire insurance pricing has softened due to good loss ratios and no major catastrophes, which could pressure margins if loss ratios revert..
Did Bajajfinsv meet its previous quarter's guidance?
Of 1 tracked promise, management 0 met, 0 close, 1 missed.
Where can I read the full Bajajfinsv Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.