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Informist, Thursday, Jan. 30, 2025

 

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--Bajaj Finserv Oct-Dec consol PAT INR 22.31 bln vs INR 21.58 bln year ago
--Bajaj Finserv Oct-Dec consol revenue INR 320.42 bln vs INR 290.38 bln yr ago
--Bajaj Finserv Apr-Dec consol PAT INR 64.56 bln vs INR 60.29 bln year ago
--Bajaj Finserv Apr-Dec consol revenue INR 972.3 bln vs INR 783.4 bln yr ago
--Bajaj Allianz General Oct-Dec gross written premium INR 66.26 bln 
--Bajaj Allianz General AUM at INR 326.33 bln as on Dec 31, up 8% YoY
--Bajaj Allianz General Oct-Dec PAT INR 4.00 bln vs INR 2.87 bln year ago 
--Bajaj Allianz Life Oct-Dec new business premium INR 27.61 bln, up 8% YoY
--Bajaj Allianz Life AUM at INR 1.22 tln as on Dec 31, up 17% YoY 
--Bajaj Allianz Life Oct-Dec PAT INR 2.22 bln vs INR 1.08 bln year ago 
--Bajaj Finserv: S Sreenivasan to step down as CFO from Feb 1
--Bajaj Finserv board OKs appointing Ramandeep Singh Sahni as CFO from Feb 1

 

By Aaryan Khanna

 

NEW DELHI – Bajaj Finserv Ltd's consolidated net profit for the quarter ended Dec. 31 rose at its slowest on-year pace in 12 quarters due to a large net loss on fair value changes and expenses growing faster than the top line. The non-bank finance company's consolidated net profit rose only 3.4% on year to INR 22.31 billion in the December quarter, up 6.9% sequentially. 

 

Bajaj Finserv is the non-operating holding company of Bajaj Finance Ltd., Bajaj Allianz General Insurance Co. Ltd., Bajaj Allianz Life Insurance Co. Ltd., and Bajaj Finserv Asset Management Ltd. Bajaj Finance, in turn, is the promoter of Bajaj Housing Finance Ltd. and Bajaj Financial Securities Ltd. 

 

Following the result, shares of Bajaj Finserv slumped 2.5% to INR 1745.20 on Wednesday on the National Stock Exchange. The company declared its result during market hours.

 

The net loss on fair value changes for Bajaj Finserv was INR 10.06 billion in Oct-Dec, against a gain of nearly INR 8 billion a year ago. This pulled down revenue growth to 10.3% on year, with expenses rising 11.1%. Moreover, while the net profit attributable to owners of the company only rose 3.4%, the share of profit to non-controlling interests rose 15.5% on year in the December quarter.

 

"Under Ind AS, the insurance subsidiaries have chosen to hold a part of the equity securities portfolio as Fair Value Through Profit and Loss (FVTPL) and the balance as Fair Value Through Other Comprehensive Income (FVTOCI)," Bajaj Finserv said in a release. "This may cause temporary volatility in financial results due to unrealised mark to market (MTM) movements on the FVTPL portfolio."

 

Unrealised losses through these accounts totalled INR 3.12 billion in the reporting quarter. Without the unrealised market to market losses, the consolidated net profit would be up 23% on year, the release said.

 

On Tuesday, Bajaj Finance had informed exchanges that its consolidated net profit rose 16.7% to INR 42.47 billion in the reporting quarter, beating analysts' estimate of INR 41.72 billion, amid a surge in its assets under management.

 

On Wednesday, Bajaj Finserv said its life insurance subsidiary Bajaj Allianz Life Insurance Co saw its net profit more than double to INR 2.22 billion in Oct-Dec. Meanwhile, Bajaj Allianz General Insurance Co. saw a jump in profit after tax by nearly 40% on year to INR 4.00 billon in the quarter.

 

SUBSIDIARY PERFORMANCE

In Oct-Dec, Bajaj Allianz General Insurance's gross written premium was INR 66.26 billion, against INR 45.36 billion a year ago. Due to new norms on gross premiums on long-term products starting Oct. 1, the two numbers were not comparable, the holding company said.

 

Excluding tender-driven crop and government health insurance premium, the general insurer's gross written premium fell 2% to INR 36.39 billion in the December quarter, based on the new calculations. On a comparable basis, with no changes in the gross premiums, the gross written premium rose 6% on year to INR 39.23 billion, the company said. 

 

Net earned premium for the quarter under review was INR 24.03 bln, up marginally from a year ago and lower on quarter. Underwriting loss halved from a year ago to INR 430 million in Oct-Dec. The general insurer's claim ratio increased to 77.5% from 72.9% in the corresponding quarter last year. If the tender-driven crop insurance and government health business and natural catastrophe losses are excluded, the claims ratio rose on year to 73.9% in the reporting quarter.

 

As of Dec. 31, Bajaj Allianz General Insurance's solvency ratio was 300%, well above the minimum regulatory requirement of 150%. Assets under management stood at INR 326.33 billion, up 8% on year. 

 

Bajaj Allianz Life Insurance Co.'s new business premium increased 8% on year to INR 27.61 billion, of which individual rated new business premium was INR 15.49 billion, flat on year. Renewal premium for Oct-Dec was INR 36.00 billion, up 24% on year. Consequently, gross written premium increased 16% to INR 63.61 billion.

 

Net new business value--the metric used to measure the profitability of the life insurance business--was INR 2.54 billion, also largely flat against the year-ago quarter. The solvency ratio was at 369% as of Dec. 31, against the minimum regulatory requirement of 150%. Assets under management as of Dec. 31 were at INR 1.22 trillion, up 17% on year but lower sequentially.  End

 

Edited by Avishek Dutta

 

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