Bajaj Finserv — Q4 FY24
Bajaj Finserv reported a strong Q4 FY24 with consolidated total income up 36% YoY to INR 32,042 crore and PAT up 20% to INR 2,119 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.
36%Questions answered5Evaded / deflected11Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Why is retail growth slower and expense ratio higher in BAGIC?
Asked by Swarnabha Mukherjee, B&K Securities
Explained slowdown as cyclical but did not quantify challenges or cost of acquisition.
no specific numbers on cost of acquisitionattributed to cyclicality without quantifying
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Question
First, I wanted to ask on the Bajaj segments. So, I think when we look at how the exit growth rates have been in the different segment, I think retail lines are looking slower. Much of the growth has come on the back of commercial lines and tender-driven businesses. So just wanted to understand, first of all, you know, what kind of challenges or enhanced cost of acquisition, et cetera, you are seeing in the industry in this retail lines, which is preventing you to accelerate the growth.
Tapan Singhel, CEO, Bajaj Allianz General Insurance
See, at Bajaj Allianz, our philosophy has been very clear from day zero. Wherever we see opportunity to grow, we grow that, you know? And if you look at retail lines of business, we're still the one of the large players in the Indian market. If the opportunity does not seem as per our pricing or as per our comfort of combined ratio, then we slow down because it's cyclic in nature.
Partial answer
High priority
Why did 37th month persistency drop in BALIC?
Asked by Swarnabha Mukherjee, B&K Securities
Identified cause as a specific partner bucket but withheld details.
did not name the partner or quantify the impact
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Question
And, on BALIC, I wanted to understand that, for FY 24, the 37th month persistency, seems to have recorded a drop, so, what has happened, because of which, you know, in this cohort, we are seeing a challenge.
Tarun Chugh, CEO, Bajaj Allianz Life Insurance
The 37th month, it's, you, correctly pointed out, has been lower. It's, it's a fact which is visible. This is a continuation of one specific bucket of one specific partner with a significant share yet in the business, where, that bucket has, not really performed as, as the way we would have, rather have it perform.
Declined
High priority
What is the outlook for VNB growth and margin in BALIC for FY25?
Asked by Swarnabha Mukherjee, B&K Securities
Explicitly declined to provide forward-looking guidance on VNB.
refused to give guidance
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Question
Also, if you can give some idea about how we should think about VNB growth and margin for FY25 in BALIC?
S. Sreenivasan, CFO, Bajaj Finserv
I think, as you know, on the VNB margins or combined ratios, we do not give guidance, particularly in insurance, where, you know, nobody can predict when catastrophes will happen or what kind of yield curve movements will happen.
Answered
Medium priority
Why are reserve releases higher for recent accident years in motor?
Asked by Madhukar Ladha, Nuvama Wealth
Provided a clear explanation of the claims development pattern.
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Question
On the motor side, you know, I noticed that there have been some good reserve releases for batting in the latter years. So if you look at sort of FY21 onwards, the reserve releases have been quite good. So, you know, can you sort of explain what's happening over there?
Ramandeep Singh Sahni, CFO, Bajaj Allianz General Insurance
Yeah, you're absolutely right that the reserve releases are more in the recent years. And that's what naturally happens. If you look at the TP claims, the way it work, most of the claims reporting happens in the four-year period. And that's why if you see that the entire development is almost done in four to five years.
Declined
Medium priority
What is management's view on potential surrender charge regulation changes?
Asked by Madhukar Ladha, Nuvama Wealth
Declined to comment on regulatory speculation.
refused to comment on speculation
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Question
And second on life insurance, there is some chatter that the regulator is reconsidering you know on the surrender charges regulation. So they had floated a draft and then rolled back a large part of it. And now, I think there is some talk of again implementing maybe part of it or in whole or I don't know. So, I'd like to get some color from you on that aspect as well.
S. Sreenivasan, CFO, Bajaj Finserv
As a matter of speculation, we'll wait to see more hard action from the regulator. We do not comment on the...
Declined
High priority
Can you split loss ratios between retail health, group health, and government?
Asked by Madhukar Ladha, Nuvama Wealth
Explicitly refused to provide the requested breakdown.
refused to provide segment loss ratios
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Question
Can you split the loss ratios between retail health, group health, and government, and, and what's been sort of the comment a little bit on, you know, the recent government health performance, because you've written a lot of business over there?
Ramandeep Singh Sahni, CFO, Bajaj Allianz General Insurance
We don't give micro breakups, no, because that's part of our business strategy.
Partial answer
High priority
What is the trigger and likelihood of a motor TP price hike?
Asked by Supratim Datta, Ambit Capital
Discussed factors but did not give a clear answer on likelihood or timing.
no specific timeline or probability given
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Question
However, this year we have seen, you know, the loss ratio is improving at an industry level there. So what could be the trigger, you know, to get a price increase here? Or do you see, you know, a scope for price increase in this segment this year, or, you know, that is also looking unlikely?
Tapan Singhel, CEO, Bajaj Allianz General Insurance
So a lot of impact that you see is post-COVID, the drop in frequency, which actually happened there, and that's why you see this impact coming in currently. But more or less, the impact of that is getting over, and in the future there would be no requirement of a price hike, is what the industry feels, and is represented also to the regulator.
Evasive
High priority
Is the improvement in motor OD claims ratio sustainable?
Asked by Nischint Chawathe, Kotak Institutional Equities
Did not directly address sustainability, instead spoke about long-term philosophy.
no direct answer on sustainabilityreframed to philosophy
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Question
You know, on the motor insurance business, you know, just trying to understand your view in terms of sustainability of the improvement in claims ratio on the OD side. Do you think, I mean, obviously, there was a big fall in the fourth quarter, but even if I look at the full year basis, there has been a fair amount of improvement. So do you see this sustaining?
Tapan Singhel, CEO, Bajaj Allianz General Insurance
Obviously, our ambition has always been to be a good underwriting company, and that has been reflecting our Combined Ratio over years now, I can say. It's not about one or two years. I think if you take it back to 10, 15 years, we have had one of the best Combined Ratios of the industry. That's the philosophy of the company.
Answered
High priority
What was Axis Bank's contribution to BALIC in Q4 and FY24?
Asked by Sanket Godha, Avendus Spark
Provided specific percentages for Axis contribution.
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Question
One is on Axis Bank, how much it contributed in the current quarter and full year, compared to previous year? I believe the channel is becoming more and more open architecture. So to counter that challenge, what we are trying to do?
Tarun Chugh, CEO, Bajaj Allianz Life Insurance
Last year, FY 2023, it was 25%. This year it is 23%. In Q4, we grew the company at 17%, Axis grew by 14%, so lower than the company.
Evasive
Medium priority
Why was crop insurance flat YoY and what is the outlook?
Asked by Sanket Godha, Avendus Spark
Did not give a clear outlook, only stated willingness to adjust based on pricing.
no specific outlookdeferred to tender pricing
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Question
Your crop has been flat year-on-year. So, you know, we all know that every company will change EOM as they're getting closer to FY 2026. So it means it has been flat in the current year, and we have always been a very good underwriter with the crop. So just wanted to understand that, with pricing maybe further deteriorating or your view on that, you see crop to come off compared to what it is today?
Tapan Singhel, CEO, Bajaj Allianz General Insurance
If the price is not right, as I said, I'm very happy to let go of my market share in crop. If the price is right, I'll gain. So I can only... It's a tender business, no? So the next tender, it depends on how the pricing goes, and that's how it will be, no?
Evasive
Low priority
What is the NWP number for the quarter?
Asked by Sanket Godha, Avendus Spark
Answer was inaudible and no number was given.
audio distortionno number provided
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Question
And around, if you can give me that NWP , the NWP number for the quarter, that will be useful.
Tapan Singhel, CEO, Bajaj Allianz General Insurance
Some dated, [audio distortion].
Partial answer
Medium priority
What are the trends on segmental margins and competitive intensity in life insurance?
Asked by Nidhesh Jain, Investec
Gave overall direction but refused to provide segmental margins.
no segmental breakdown provided
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Question
My question is on, life insurance. How are the trends on segmental margins, and how are the trends on the competitive intensity in terms of commission payout or IRR, or pricing on the protection side there that, that we are seeing in the marketplace?
Vipin Bansal, CFO, Bajaj Allianz Life Insurance
I think, I would generally say across segments, our margins has been largely getting better. We don't specifically talk about segmental margins, but on an overall basis, I would say across segments, we are seeing stable to improving margins.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| BALIC Q4 company growth 17%, Axis growth 14% | 17% | 36% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.