Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Q3 FY19 Earnings Presentation
34 slides from Bajaj Finserv's earnings presentation, Jan 29, 2019
Slide 1: Cover letter to stock exchanges
~BAJAJ \li1FINSERV 29 January 2019 To To Corporate Relations Department. Corporate Listing Department. BSE Limited National Stock Exchange of India Ltd P 1 Floor, New Trading Ring, Exchange Plaza, 5th Floor Rotunda Building, P J Tower, Plot No.C-1, G Block, Dalal Street, Mumbai 400 001 Bandra-Kurla
Slide 2: Bajaj Finserv Limited Investor Presentation – Q3 FY19
BAJAJ FINSERV LIMITED Investor Presentation – Q3 FY19* * Financial year 2018-19
Slide 3: Bajaj Finserv – A diversified financial services group
Bajaj Finserv – A diversified financial services group 54.99% 74% 74% Bajaj Finance Limited Bajaj Allianz General Bajaj Allianz Life • Diversified Consumer, Rural, Insurance # Insurance # SME, Commercial & Mortgages lender in India • Among the top 5 private sector • Consistently profitable amongst L
Slide 4: Bajaj Finserv performance highlights
Bajaj Finserv performance highlights All Figures in Rs Million Performance Highlights of Q3 FY19 over Q3 FY18 (Ind AS) CY 111,416 8,505 31,584 39% 16% 10% PY 80,054 7,305 28,693 Total Revenue PAT* Net Worth (Consolidated) (Consolidated) (Standalone) • Bajaj Finserv remains a debt free company. Bajaj
Slide 5: Consolidated profit components
Consolidated profit components All Figures in Rs Million Consolidated profit components for Q3 FY19 (Ind AS) Intercompany adjustments Bajaj Finserv- Standalone - Others 77 Life 8,505 Insurance (55) Bajaj Finserv General - Insurance 953 Consolidated Bajaj Finance 1,704 5,826 Consolidated profit compo
Slide 6: Adoption of Ind AS Accounting standards
Adoption of Ind AS Accounting standards • Bajaj Finserv has adopted Indian Accounting Standards (Ind AS) with effect from 1st April 2018 • Insurance companies’ stand-alone numbers are as per Indian GAAP, as Ind AS is not applicable to them. However, for consolidation purposes, they have provided Ind
Slide 7: Reconciliation of Consolidated profit as per Ind AS with Indian GAAP
Bajaj Finserv : Reconciliation of Consolidated profit as per Ind AS with Indian GAAP All Figures in Rs Million Particulars Q3 FY19 Q3 FY18 9M FY19 9M FY18 FY2018 Net Profit after Tax as per IGAAP 9,067 7,486 25,847 20,560 27,414 Ind AS Adjustments : Increase / (decrease) Adoption of Effective Intere
Slide 8: 9M FY19 Highlights
9M FY19 Highlights All Figures in Rs Million Highlights of Group Companies BAJAJ FINSERV$ 9M FY19 9M FY18 Growth BAJAJ FINANCE$# 9M FY19 9M FY18 Growth Total Revenue 296,111 238,074 24% AUM 1,099,298 780,338 41% Net worth (Cons) 22,800 19,905 15% Total Income 132,329 92,740 43% PAT 23,803 20,132 18%
Slide 9: Bajaj Finance Limited
BAIA FINSERV Bajaj Finance Limited
Slide 10: Bajaj Finance - Overview
Bajaj Finance - Overview Business Construct Non-bank with strategy & structure of a bank with consistent track record of profitability Focussed on mass affluent & above clients with strong cross sell orientation Diversified financial services strategy seeks to optimise risk and profit to deliv
Slide 11: Bajaj Finance – Overview: Differentiators
Bajaj Finance – Overview DIFFERENTIATORS Part of the Bajaj Group – one A trusted brand with strong brand equity of the oldest & most respected business houses Focus on mass affluent and Overall customer franchise of 32.57 Mn. and Cross sell above customers client base of 19.69 Mn. Strong focus o
Slide 12: Bajaj Finance's businesses
Bajaj Finance’s businesses BAJAJ FINANCE Consumer SME Commercial Rural • Largest consumer • Focused on affluent • Wholesale Lending • Unique hub-and-spoke electronics, digital SMEs with an average products covering short, model in 869 locations products & furniture annual sales of around medium and
Slide 13: Bajaj Finance – Q3 highlights
Bajaj Finance – Q3 highlights All Figures in Rs Million Performance Highlights of Q3 FY19 over Q3 FY18 (Ind AS) CY 1,065,493 49,953 10,596 43% 48% 54% PY 747,188 33,741 6,900 Book Size Total Income Profit After Tax CY 1.05% 5.9% • Borrowing mix is not excessively dependent on banks. (Mix of 35 : 53
Slide 14: Bajaj Finance's growth momentum continues
Bajaj Finances’ growth momentum continues All Figures in Rs Million Book Size Total Income Q3 FY19 127,719 Increase of 43% 1,065,493 808,158 747,188 Q3 FY19 Increase of 48% 49,953 33,741 FY18 Q3 FY18 Q3 FY19 FY18 Q3 FY18 Q3 FY19 Net Interest Income 81,503 Q3 FY19 Increase of 46% 32,092 21,953 FY18 Q
Slide 15: Strong profit growth aided by low NPA and control on Opex
Strong profit growth aided by low NPA and control on Opex All Figures in Rs Million Loss Provision and Net NPA% 11,000 10,349 2.0% 10,000 9,000 8,000 7,000 6,000 5,000 4,538 4,000 2,782 3,000 2,000 0.57% 0.62% 1,000 0.43% 0 0.0% FY18 Q3 FY18 Q3 FY19 Loss Provision (Rs. millions) Net NPA % Operating
Slide 16: Bajaj Allianz General Insurance
Bajaj Allianz General Insurance 15
Slide 17: BAGIC - Key Strategic Differentiators
BAGIC - Key Strategic Differentiators STRATEGY Strive for market share growth through a well-diversified product portfolio and multi-channel distribution supported by prudent underwriting DIFFERENTIATORS Strong selection of Risk & prudent Industry leading combined ratios consistently over time - BAG
Slide 18: Bajaj Allianz General – Q3 highlights
Bajaj Allianz General – Q3 highlights All Figures in Rs Million Performance Highlights of Q3 FY19 over Q3 FY18 CY 25,470 20,226 18,009 2,236 35% 35% 21% -15% PY 18,924 15,036 14,861 2,617 Gross Written Net Written Premium Net Earned Premium Profit After Tax Premium Ex Crop GWP was Rs. 24,219 Mn in
Slide 19: BAGIC has maintained its Combined ratio below 100%
In a highly price competitive market BAGIC has maintained its Combined ratio, below 100% on a sustained basis Combined Ratios (Including Motor TP Pool Losses) 98.1% 96.7% 99.3% 96.8% 92.3% 92.1% 94.2% FY14 FY15 FY16 FY17 FY18 Q3 FY18 Q3 FY19 1. Combined Ratios are in accordance with the Master Circu
Slide 20: Profit after tax and capital efficiency
Profit after tax and capital efficiency All Figures in Rs Million PAT CAGR of 23% between FY14 – FY18 PAT 9,212 7,278 5,623 5,642 4,090 2,617 2,236 FY14 FY15 FY16 FY17 FY18 Q3 FY18 Q3 FY19 BAGIC - Capital Invested - Networth Accumulated profit* Capital infused is Rs.2,768 Mn 94% of Net worth as No C
Slide 21: BAGIC consistently amongst top private insurers in terms of Gross Premium
BAGIC consistently amongst top 2 private insurers in terms of Gross Premium Industry GDPI Trend (Rs. Bn.) 1,415 1,199 Q3 FY19 GDPI growth 18% 916 803 737 729 597 378 439 413 343 351 602 678 176 238 386 425 477 175 175 FY14 FY15 FY16 FY17 FY18 Q3 FY18 Q3 FY19 PSU Private Insurers* Industry BAGIC Prem
Slide 22: BAGIC has a well balanced product mix
BAGIC has a well balanced product mix Product Mix 9% 9% 10% 9% 8% 8% 8% Others 4% 5% 8% 6% 18% 19% 20% 16% 14% Agri (Crop 16% 16% Insurance) 9% 10% 6% 6% 13% 14% 16% 5% Prop, 6% 6% 7% 7% 9% 6% Liability, Engg 6% 5% Group Health 59% 55% 56% 55% 51% Health 46% 44% (Retail) Motor (Retail) FY14 FY15 FY1
Slide 23: BAGIC's Channel Mix: Bancassurance strengthening
BAGIC’s Channel Mix : Bancassurance strengthening Channel Mix 5% 8% 9% 13% 12% 9% Corporate Agents - Banks 11% 4% 19% 20% 23% 25% Corporate Agents - Others 28% 31% 23% Individual Agents 17% Direct Business 36% 38% 37% 32% Brokers FY17 FY18 Q3 FY18 Q3 FY19 Focus on Bancassurance channel has yielded
Slide 24: Assets Under Management continue to grow
Assets Under Management continue to grow AUM(cash and investments) - Rs Billion (as of end of period) Q3 FY19 Increase of 23% 163 148 133 BAGIC continues to 108 grow its AUM strongly 92 79 Investments 70 are largely in fixed income securities FY14 FY15 FY16 FY17 FY18 Q3 FY18 Q3 FY19 23
Slide 25: Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance 24
Slide 26: BALIC – Key Strategic Differentiators
BALIC – KEY STRATEGIC DIFFERENTIATORS STRATEGY • Balance growth with balanced product mix, seeking steady increase in market share of individual business • Business construct is to balance customer benefit with shareholder returns, focusing on New Business Value DIFFERENTIATORS • Focused on retail s
Slide 27: Bajaj Allianz Life – Q3 highlights
Bajaj Allianz Life – Q3 highlights All Figures in Rs. Million Performance Highlights of Q3 FY19 over Q3 FY18 CY 4,241 7,367 9,523 21,232 16% 30% 20% 22% PY 3,648 5,685 7,956 17,392 Individual Rated NB Group NB Renewal Premium Gross Written Premium CY 1,122 546,874 767% Solvency Ratio as on -31% 31 D
Slide 28: Ticket size continues to increase
Ticket size continues to increase All Figures in Rs. Individual Regular Premium Ticket Size Individual Regular Premium Ticket Size (Agency) Q3 FY19 Q3 FY19 increase of 13% Increase of 10% 74,780 67,905 57,083 62,858 50,345 45,449 50,165 37,066 FY17 FY18 Q3 FY18 Q3 FY19 FY17 FY18 Q3 FY18 Q3 FY19 Focu
Slide 29: Efforts to improve Persistency paying off
Efforts to improve Persistency paying off Persistency 13th Month Persistency 25th Month 77% 76% 78% 66% 68% 58% 57% 63% 51% 51% Persistency - 13th Month Persistency - 25th Month FY16 FY17 FY18 9M FY18 9M FY19 FY16 FY17 FY18 9M FY18 9M FY19 Persistency 37th Month 49% 52% 44% 47% 42% Persistency - 37t
Slide 30: BALIC's Individual Rated premiums growing across all major channels
BALIC’s Individual Rated premiums growing across all major channels All Figures in Rs Million FY18 Increase Individual Rated NB Agency Individual Rated NB of 38% FY18 Increase 13,972 of 31% 11,065 10,101 Q3 FY19 increase 8,476 of 16% Q3 FY19 increase of 2% 3,648 4,241 2,882 2,945 FY17 FY18 Q3 FY18 Q
Slide 31: Balanced product mix
Balanced product mix Individual Rated Mix (Annual) Individual Rated Mix (Quarterly & YTD) 5% 7% 7% 5% 4% 4% 6% 25% 24% 23% 22% 42% 32% 33% 70% 72% 72% 74% 51% 61% 61% FY16 FY17 FY18 Q3 FY18 Q3 FY19 9M FY18 9M FY19 Individual - Unit Linked Individual - Par Individual - Non Par Individual - Unit Linke
Slide 32: Assets Under Management
Assets Under Management AUM (Mix) • AUM growth of 4% for Q3 FY19 524 547 vs Q3 FY18 520 493 436 441 • 9M FY19 AUM grew by 5% vs 388 326 FY18 306 299 279 249 225 • Of the UL Funds of Rs.221 Bn., 213 217 219 214 214 221 175 192 58% is equity funds as on 31 Dec 2018 (66% as on 31 Dec 2017 out of the UL
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finserv Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any s
Slide 34: Thank You
BAJAJ FINSERV Thank You 33