Bajaj Finserv — Q4 FY26
Bajaj Finserv's Q4 FY26 consolidated results were impacted by temporary MTM losses on insurance investment portfolios due to geopolitical tensions.
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medium
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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 answered4Evaded / deflected12Questions audited
Partial answer
High priority
Non-par savings mix reduction, pricing pressure, strategy for FY27; motor TP release higher; Bajaj Direct loan quality concerns.
Asked by Shreya Shivani, Nomura
Answered mix shift but did not give explicit strategy for FY27 or confirm pricing pressure.
no specific strategy for FY27reframed non-par as including annuities
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Question
First is on the life insurance entity. Non-par savings mix has reduced. Just trying to understand if you can give us a flavor of how were the markets for the non-par product... Was there any pricing pressure... What is your strategy for FY 2027?
Tarun Chugh (MD & CEO, Bajaj Life Insurance)
Non-par, the way we see it is a bucket of non-par plus annuities... Our annuity actually doubled from 5% - 10%... overall non-par did come down from 21 to 16... The market has actually looked at more higher age customers...
Evasive
Medium priority
Motor TP release higher at INR 800 cr vs usual INR 600-700 cr.
Asked by Shreya Shivani, Nomura
Did not address why release was higher; dismissed as natural without specifics.
no specific explanation for higher releasedenied shift despite analyst's numbers
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Question
The reserving triangles looks like the release in TP in FY 2026 has been higher. I'm coming to about INR 800 crores versus usually the INR 600 crores-INR 700 crores you've done in the last couple of years. Any color you can give around what has happened here.
Tapan Singhel (MD & CEO, Bajaj General Insurance)
If you look at TP release is a factor of how the book develops... I don't see that there's a huge shift in terms of the release happening... It's a natural phenomena. I don't see any change in the philosophy.
Partial answer
Medium priority
Measures to tighten loan quality at Bajaj Direct amid concerns.
Asked by Shreya Shivani, Nomura
Explained marketplace role but did not detail any new tightening measures.
no specific tightening measures mentionedfocused on insulation rather than actions
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Question
This is on Bajaj Direct... there are a lot of concerns around some of the business loans... are there any measures we are taking to tightening anything from our end?
Ashish Panchal (MD & CEO, Bajaj Finserv Direct)
As a marketplace, we get a ringside view of the prevailing risk... we choose our manufacturer partners very, very carefully. Our volumes are not affected and hence revenue is not affected.
Evasive
High priority
Product mix evolution and profitability outlook for general insurance in FY27.
Asked by Prayesh Jain, Motilal Oswal
Did not provide concrete outlook; spoke generally about philosophy.
no specific product mix or profitability guidancedeferred to industry conditions
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Question
Just wanted to understand on the general insurance front, you know, how do you see the product mix evolving and, you know, the overall profitability of the entity going ahead into FY 2027?
Tapan Singhel (MD & CEO, Bajaj General Insurance)
If you look at Bajaj General combined ratio, it's 200% last year, no. Even the industry deteriorated by about 6%-7% combined ratio... Next year it again depends on how the industry moves.
Partial answer
High priority
VNB margin trajectory and product mix target for FY27 in life insurance.
Asked by Prayesh Jain, Motilal Oswal
Provided product mix targets but avoided giving a specific VNB margin forecast.
no specific margin number givenonly directional guidance
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Question
Just trying to understand VNB margin trajectory from here on. What kind of VNB margin should we think and what kind of product mix that you would be targeting for FY 2027?
Tarun Chugh (MD & CEO, Bajaj Life Insurance) and Vipin Bansal (CFO, Bajaj Life Insurance)
Directionally all our product segments are now profitable... We expect the trajectory of term to only increase from here on, that should impact our VNB margins only positively.
Answered
Medium priority
Break-even AUM scale for AMC and new segments like PMS, AIF.
Asked by Prayesh Jain, Motilal Oswal
Provided specific AUM target for break-even and confirmed new segments.
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Question
At what scale of AUM do you think that this business will break even? What should be the target for us in our model from a break-even perspective? What are the new segments that you are kind of investing in?
Ganesh Mohan (MD, Bajaj Finserv AMC)
The break even for us would be close to about, INR 1 lakh crores, with the continued mix on, equity versus debt versus, passive. At this point, we are actively considering both the PMS as well as the SIF.
Declined
High priority
If GST impact mitigated, will VNB margin be 22% in FY27?
Asked by Sanketh Godha, Avendus Spark
Explicitly declined to confirm or deny the 22% margin expectation.
refused to confirm margin guidance
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Question
If I exclude GST impact, the margin for the year was at 22%... Is it fair to say that in next year, if the product mix remains broadly the same, we'll end up reporting a 22 kind of a margin for the next year?
Vipin Bansal (CFO, Bajaj Life Insurance) and Tarun Chugh (MD & CEO, Bajaj Life Insurance)
You will not hear any affirmation or otherwise from us on margins if you're going to indicate like this... Directionally we can tell you we are in a positive trajectory... we're not gonna indicate any margin.
Partial answer
High priority
Is second-half growth rate sustainable and agency-led?
Asked by Sanketh Godha, Avendus Spark
Indicated better growth but did not commit to a specific number or confirm agency as primary driver.
no specific growth rate givenonly directional
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Question
Our growth came back to around mid-teen. Is it fair to say that this is the kind of growth that we will end up? If that is the case, that heavy lifting will be done by agency channel?
Tarun Chugh (MD & CEO, Bajaj Life Insurance)
You should see a better growth than what you saw in our second half... All our businesses are in now a growth trajectory... On the agency side... you should expect it to be better.
Answered
Medium priority
Reason for EV assumption change of INR 51 cr.
Asked by Sanketh Godha, Avendus Spark
Clearly attributed the assumption change to a dip in persistency.
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Question
On the EV side, the assumption change of INR 51 crores is predominantly related to which operating parameter, whether it's mortality or persistency?
Tarun Chugh (MD & CEO, Bajaj Life Insurance)
On the portfolio basis, I think assumptions are holding good. You would see there has been a dip in our persistency, and that's what largely is reflecting in assumption change.
Evasive
Medium priority
Reinsurance strategy and higher ceding in retail lines.
Asked by Sanketh Godha, Avendus Spark
Did not address whether higher ceding would be revisited; gave generic explanation.
no specific answer on revisiting strategydeflected to combined ratio
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Question
Broadly, I just want to understand this reinsurance strategy... we typically are little higher on ceding business now. Whether we'll revisit this strategy or we think that this will continue even going ahead?
Tapan Singhel (MD & CEO, Bajaj General Insurance) and Ramandeep Singh Sahni (CFO, Bajaj Finserv)
Reinsurance is not a strategy. It is how you build your book... The approach does not change... Our combined ratio vis-à-vis the industry will answer that question.
Partial answer
High priority
Competitive intensity in motor and group health; impact of commission change; Bajaj Alternatives strategy.
Asked by Divij Punjabi, Banyan Tree Advisors
Acknowledged competition but gave no specifics; commission impact not addressed; alts strategy provided.
no quantification of competitive intensitycommission impact deferred to regulator
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Question
How are we seeing the comparative intensity playing out in motor and group health lines of business... what is your strategy on the alternative business?
Tapan Singhel (MD & CEO, Bajaj General Insurance), Tarun Chugh (MD & CEO, Bajaj Life Insurance), Ramandeep Singh Sahni (CFO, Bajaj Finserv)
Yes, there is competitive intensity in some businesses like motor, you know, GMC... We haven't yet received any message from the IRDAI... On the alts one... we are planning to file, sorry start the PMS part to start with.
Answered
High priority
Persistency decline reasons and outlook.
Asked by Nidhesh Jain, Investec Securities
Explained the cause (early gratification products) and confirmed the trend, though forward outlook was general.
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Question
On persistency, what is happening in your view on the at the industry level and for you also that persistency after improving post-COVID for four, five years. This year we are seeing decline across the companies on persistency. How do you see persistency trends going forward?
Tarun Chugh (MD & CEO, Bajaj Life Insurance)
Overall, if you look at it, there was a set of products which were introduced by a few market leaders about 12 months-18 months back... Largely, it is just one bucket that has impacted the entire sector.