Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Non-Deal Roadshow (September 2023)
56 slides from Bajaj Finserv's roadshow presentation, Sep 12, 2023
Slide 1: Intimation of schedule of investor meetings under Regulation 30
12 September 2023 To To Corporate Relations Department. Corporate Listing Department. BSE Limited National Stock Exchange of India Ltd 1st Floor, New Trading Ring, Exchange Plaza, 5th Floor Rotunda Building, P J Tower, Plot No.C-1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Mumbai 400 001 Ba
Slide 2: Bajaj Finserv Limited Investor Presentation – FY23
BAJAJ FINSERV LIMITED Investor Presentation – FY23 Financial Year : 1st April 2022 to 31st March 2023
Slide 3: Bajaj Finserv Group Structure
Bajaj Finserv Group Structure General & Health Insurance Bajaj Allianz General Insurance Life Insurance, Retirement & Pension Mortgage and Developer Bajaj Allianz Life Insurance Financing Consumer & Finance Business Bajaj Housing Finance Bajaj Finance (Listed) Digital Stockbroker Digital Marketplace
Slide 4: Bajaj Finserv's Vision – A diversified financial services group
Bajaj Finserv’s Vision – A diversified financial services group with a pan-India presence Life cycle Family, needs of Investment/ Asset Asset Health & Individual & Wealth Retirement acquisition protection Income SME management Protection customers Loan (Personal, General Insurance General, Health &
Slide 5: Bajaj Finserv – Established businesses with strong track record
Bajaj Finserv – Established businesses with strong track record ❑ Build a profitable & diversified portfolio of products & solutions Bajaj Allianz with emphasis on multi-channel distribution, strong underwriting with stress on combined ratio & prudent financial management General Insurance ❑ Drive t
Slide 6: Bajaj Finserv – Emerging Opportunities
Bajaj Finserv – Emerging Opportunities ❑ Health Tech venture - aims to transform healthcare sector in India ❑ Integrating the fragmented healthcare delivery ecosystem with technology and financial services on a digital platform to bring Bajaj Finserv quality healthcare closer to consumers' reach thr
Slide 7: Group Best practices
Group Best practices ▪ Monitor and engage with our companies with the objective of long-term sustainable profit, meaningful market share, and effective use of capital - thereby delivering superior shareholder returns ▪ We do this by driving companies to create institutionalized frameworks through ac
Slide 8: Returns to shareholders BFS and BFL
Returns to shareholders BFS and BFL Bajaj Finserv & Bajaj Finance • BFL included in Nifty 50 index from Sep, 2017 Change in the Share Price of BFS and BFL vs Nifty 50 index on base year On 28th July 2022, Bajaj Finserv Limited • BFL included in S&P BSE Sensex from Dec, announced a 5:1 Stock Split al
Slide 9: Bajaj Finserv – Consolidated Financial Highlights
Bajaj Finserv – Consolidated Financial Highlights 1 USD = Rs.82 Financials Snapshot, USD MM FY18 FY19 FY20 FY21 FY22 FY23 CAGR Life Insurance (GWP) 924 1,080 1,189 1,466 1,967 2,373 21% General Insurance (GWP) 1,157 1,353 1,565 1,540 1,681 1,889 10% Retail Finance 1,556 2,256 3,218 3,254 3,860 5,049
Slide 10: Bajaj Allianz General Insurance
BAJAJ ALLIANZ GENERAL INSURANCE
Slide 11: BAGIC – Key Strategic Differentiators
BAGIC – Key Strategic Differentiators STRATEGY Strive for market share growth in chosen segments through a well-diversified product portfolio and multi-channel distribution supported by prudent underwriting DIFFERENTIATORS ▪ Industry leading combined ratios consistently Strong selection of Risk & di
Slide 12: BAGIC – Key financial metric: Performance vs. industry
BAGIC – Key financial metric: Performance vs. industry 1USD = Rs.82 BAGIC INDUSTRY GWP Growth - 5 Year CAGR 8.7% 9.5% COR - 5 Year average 99.0% 118.3% Opex Ratio* - 5 year average 28.2% 31.4% Cumulative UW Profit for 5 years $ (15,071) $ 19 MM MM Cumulative PAT for 5 years $ 707 MM $ (691) MM AUM G
Slide 13: BAGIC: Combined Ratio
BAGIC : Combined Ratio Combined Ratio 100.8% 99.6% 100.5% 96.7% 96.9% 98.3% 97.3% FY19 FY20 FY21 FY22 FY23 Q4 FY22 Q4 FY23 1. Combined Ratios are in accordance with the Master Circular on ‘Preparation of Financial statements of General Insurance Business’ issued by IRDA effective from 1st April, 201
Slide 14: BAGIC's Product Suite – Diversified across retail and corporate lines
BAGIC’s Product Suite – Diversified across retail and corporate lines Motor Health Miscellaneous • Commercial Lines* • Private Cars • Retail health • Travel • Two-Wheeler • Group health • Extended Warranty • Commercial Vehicles • Critical Illness • Crop Insurance • Liability Only • Personal Accident
Slide 15: BAGIC – Multi Channel Distribution
BAGIC – Multi Channel Distribution Channel Mix 31% 23% 27% 27% 30% 25% 37% 37% 32% 42% 42% 48% 9% 7% 4% 12% 12% 3% 2% 2% 8% 10% 10% 10% 20% 21% 20% 18% 16% 15% FY18 FY19 FY20 FY21 FY22 FY23 Individual Agents Corporate Agents - Banks Corporate Agents - Others Brokers Direct Business Partnership with
Slide 16: BAGIC - Net Worth and Assets Under Management
BAGIC - Net Worth and Assets Under Management All numbers in $ MM 1USD = Rs.82 BAGIC – Net Worth Accumulated profit* 97% of BAGIC Net worth as on 31 Mar 2023 continues to grow its AUM 1,196 1,076 strongly 918 1,162 630 688 1,042 884 596 654 Investments 34 34 34 34 34 are largely in fixed income FY19
Slide 17: BAGIC – Customer obsession
BAGIC – Customer obsession NPS* score & Grievances# BAGIC Net Promoter Score* 68 70 69 72 63 65 54 57 47 46 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Health Motor Consistently rated highest in terms of Relationship NPS amongst all top competitors Total Grievances# per 10,000 New Policies 1.05 0.94 0.9
Slide 18: BAGIC hosted General Insurance Festival of India (GIFI)
BAGIC hosted General Insurance Festival of India (GIFI) • BAGIC hosted the first-ever General Insurance Festival of India (GIFI) on the 3rd of July 2023 in Pune, India • There was a record turnout of 5,235 attendees, which officially set a new Guinness World Records achievement for the Largest atten
Slide 19: BAGIC - Key Technology Initiatives
BAGIC - Key Technology Initiatives Digital Journey Metrics Digital Agent Onboarding FY22-23 Digital Issuance FY 22-23 From 100% in FY 21-22 -> From 94.48% in FY 21-22 -> 100% 95.21% Digital Payment FY 22-23 Net Promoter Score* Motor Health FY21 FY22 FY21 FY22 From 90.10% in FY 21-22 -> 92.47% 65 ↑ 7
Slide 20: BAGIC - Key Technology Initiatives (contd..)
BAGIC - Key Technology Initiatives (contd..) Transformation Projects Update Core Transformation Data Center Modernization Customer Loyalty Motor Third Party renewals was The hybrid cloud journey has made Loyalty program has made initial moved to the new Policy admin a significant progress with Data
Slide 21: BAGIC – Risk Management
BAGIC – Risk Management Asset Quality Pricing & Underwriting ▪ 98.9% of the debt portfolio in AAA and ▪ Superior underwriting capability leading to low sovereign assets Combined Ratio consistently ▪ 94.5% of Equity is in Nifty 50 stocks & 97.7% is ▪ Diversified exposure across business lines & in BS
Slide 22: Bajaj Allianz General Insurance – Financial Highlights
Bajaj Allianz General Insurance – Financial Highlights 1USD = Rs.82 Financials Snapshot, USD MM (IGAAP) FY 18 FY 19 FY 20 FY 21 FY22 FY23 CAGR Capital Infused including premium 34 34 34 34 34 34 Net Worth 545 630 688 918 1,076 1,196 17% Asset under Management (AUM) 1,808 2,102 2,286 2,823 3,004 3,39
Slide 23: Bajaj Allianz Life Insurance
BAJAJ ALLIANZ LIFE INSURANCE
Slide 24: BALIC – Key Strategic Differentiators
BALIC – Key Strategic Differentiators STRATEGY • Continued focus on sustainable and profitable growth by maintaining balanced product mix and investment in retail growth engines • Business construct is to maximize customer benefits while gaining market share in retail space, maintaining shareholder
Slide 25: BALIC – Key financial metric: Performance vs. industry
BALIC – Key financial metric: Performance vs. industry 1USD = Rs.82 BALIC INDUSTRY GWP Growth - 5 Year CAGR 22% 11% IRNB Growth - 5 Year CAGR 32% 11% Solvency ratio as on 31st March 2023 581% 258% AUM Growth - 4 year CAGR (till FY22) 15% 12% Cumulative PAT for 5 years $ 274 MM NA NBV Growth – 5 Year
Slide 26: BALIC – Premium Growth
BALIC – Premium Growth All Figures in $ Million (1 USD = Rs. 82) New Business Renewal Premium Gross premium 1,309 2,373 5 Year CAGR of 20% 5 Year CAGR of 22% 5 Year CAGR of 21% 1,064 1,114 1,967 853 697 1,466 770 558 1,189 600 632 1,080 480 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20
Slide 27: BALIC: Diversified Distribution
BALIC : Diversified Distribution Individual Rated New Business Channel-wise Mix ❑ BALIC embarked on diversifying its distribution mix, scaling up alternate channels and enabling 10% 11% 11% 9% 9% wider presence by exploring alternate partnerships 20% ❑ Greater balance between institutional and 33% 4
Slide 28: BALIC: All-round Growth in Individual Rated New Business
BALIC : All-round Growth in Individual Rated New Business All Figures in $ Million (1 USD = Rs. 82) Whole Company Agency FY23 growth of 41% 636 FY23 growth of 43% 5 Year CAGR* of 30% 259 5 Year CAGR of 14% 450 182 147 301 135 132 134 235 212 170 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22
Slide 29: BALIC – Balancing Product Mix for Sustainability
BALIC – Balancing Product Mix for Sustainability New Business Product Mix IRNB* Mix 31% 41% 39% 47% 51% 57% 60% 3% 63% 61% 60% 3% 6% 1% 1% 27% 42% 20% 29% 9% <1% <1% 11% 53% 2% 7% 37% 39% 40% 43% 30% 28% 23% 20% 17% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Individual - Unit Linked Individua
Slide 30: BALIC: Persistency
BALIC : Persistency 13th Month Persistency 25th Month Persistency 82% 74% 82% 72% 71% 71% 80% 79% 79% 68% Persistency - 13th month Persistency - 25th month FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 37th Month Persistency 49th Month Persistency 61st Month Persistency 64% 66% 63% 62% 62% 58% 4
Slide 31: New Business Value (NBV) & Embedded Value Update
New Business Value (NBV) & Embedded Value Update$ Figures in USD : Mn 1 USD = Rs.82 Particulars FY 19 FY 20 FY21 FY22 FY23 PERFORMANCE Annualized PremiumHIGHLIGHTS ** (ANP) 271 280 356 532 746 Present Value of Gross Premium (PVGP) 1,285 1,408 1,871 2,742 3,641 Net New Business Value* (NBV) 19 28 44
Slide 32: Digital Initiatives to offer best in class customer experience
Digital Initiatives to offer best in class customer experience Digital asset BALIC Innovations usage 3 5 CDP (Customer Data Life Assist App i-Recruit % Platform) • Fully digital Insurance Dynamic engine to target • BALIC’s one-stop self-servicing Consultant hiring portal customers and build platform
Slide 33: Bajaj Allianz Life Insurance – Financial Highlights
Bajaj Allianz Life Insurance – Financial Highlights 1USD = Rs.82 Financials Snapshot, USD MM (IGAAP) FY18 FY19 FY20 FY21 FY22 FY23 CAGR Capital infused including premium 148 148 148 148 148 148 Net Worth 1,124 1,177 1,187 1,309 1,334 1,315 3% Assets under management (AUM) 6,338 6,905 6,840 8,997 10,
Slide 34: Bajaj Finance
BAJAJ FINANCE
Slide 35: BFL – Key Strategic Differentiators
BFL – Key Strategic Differentiators STRATEGY • Diversified financial services strategy seeking to optimize risk and profit, to deliver a sustainable business model and deliver a superior ROE and ROA • Focused on continuous innovation to transform customer experience to create growth opportunities. D
Slide 36: BFL: Customer Franchise
BFL : Customer Franchise Q4 FY22 Q4 FY23 Total Franchise 57.57 Mn 69.14 Mn 45.21 Mn Credit segment filter 53.63 Mn 43.62 Mn Overall Cross sell franchise 51.95 Mn 38.60 Mn Non delinquent customers 45.87 Mn Cross sell 32.77 Mn franchise 40.56 Mn New to Bajaj Finance Customers Q3 FY22 Q4 FY22 Q1 FY23 Q
Slide 37: BFL: Business Segments
BFL : Business Segments BAJAJ FINANCE Consumer SME Commercial Rural • Largest consumer • Focused on affluent • Wholesale Lending • Unique hub-and-spoke electronics, digital SMEs with established products covering business model in 2,341 products & lifestyle financials & short-, medium- and towns and
Slide 38: BFL: Key Takeaways
BFL : Key Takeaways ▪ Customer franchise as of 31 Mar 2023 up by 20%, Growing customer franchise 69.14 MM in FY2023 from 57.57 MM for FY2022 ▪ Consolidated AUM of $30,168 MM as on 31 Mar Strong AUM growth 2023, up by 25% from $24,080 MM as on 31 Mar 20212 ▪ Consolidated PAT of $1,403 MM for FY2023,
Slide 39: Bajaj Finance – Financial Highlights
Bajaj Finance – Financial Highlights 1USD = Rs.82 FY18 FY19 FY20 FY21 FY22 FY23 Financial Snapshot, USD MM (Consol.) (Consol.) (Consol.) (Consol.) (Consol.) (Consol.) CAGR1 Assets under management 10,051 14,133 17,946 18,652 24,080 30,168 25% Income from operations 1,556 2,256 3,218 3,254 3,860 5,04
Slide 40: Bajaj Finserv Direct Ltd (Bajaj Markets)
Bajaj Finserv Direct Ltd (Bajaj Markets) 39
Slide 41: BFSI B2C Marketplace - Bajaj MARKETS
BFSI B2C Marketplace - Bajaj MARKETS STRATEGY BFSI marketplace is a unique & diversified Marketplace for Financial Services which attracts large number of consumers and cross-sells products by leveraging Technology & Analytics. DIFFERENTIATORS Diversified Marketplace ▪ Open Architecture platform off
Slide 42: BFSI B2C Marketplace - Bajaj MARKETS
BFSI B2C Marketplace - Bajaj MARKETS Organic Visits Cumulative App Installs (In Thousands) (In Thousands) 10,000 25,000 22,035 8,560 19,365 8,000 20,000 6,229 16,160 13,735 6,000 4,978 5,201 5,219 15,000 11,829 9,433 4,000 3,275 3,308 10,000 2,685 6,872 2,335 5,007 5,000 3,614 2,000 0 0 Q1 FY Q2 FY
Slide 43: B2B Digital Technology Services
B2B Digital Technology Services STRATEGY Be a leading digital technology services provider from India in the financial services sector through deep domain expertise and execution capabilities. • Portfolio of 6 technology Services to address business needs of BFSI industry basis strong domain & techn
Slide 44: B2B Digital Technology Services – International Ops
B2B Digital Technology Services – International Ops STRATEGY Geo expansion Expanding to overseas markets to achieve scale & higher profitability • Key growth markets beyond India: Middle East Asia (MEA) • Business Dev & Delivery Centers: India (Global delivery), Dubai (business development hub) with
Slide 45: Bajaj Finserv Health Limited
Bajaj Finserv Health Limited 44
Slide 46: Bajaj Finserv Health – Key Strategic Differentiators
Bajaj Finserv Health – Key Strategic Differentiators STRATEGY • Health Management platform to solve for Access and Financing of healthcare to Indian consumers • Making healthcare Prepaid, Preventive and Personalized by covering Hospitalization, Diagnostics and Doctor consultation spends DIFFERENTIAT
Slide 47: Bajaj Finserv Health – Business Model
Bajaj Finserv Health – Business Model SUPERIOR CONSUMER EXPERIENCE CONSUMER STACK PROVIDER STACK Health App Doctors Health Insights Cashless OPD Diagnostics Cohort Formation Employee Wellness Hospitals Health Transactions Fitness & Wellness Customized Product Provider Information HEALTHCARE TRANSACT
Slide 48: Bajaj Finserv Health – Overall Metrics & Services
Bajaj Finserv Health – Overall Metrics & Services REVENUE & OPEX ($ MM) 25.0 20.9 20.0 16.1 12.4 13.3 15.0 9.4 10.4 7.7 8.3 10.0 4.6 5.5 3.4 4.2 5.0 - Q4 FY21-22 Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 Total Revenue ($ MM) Total Opex ($ MM) Services Offered Wellness Services Doctor •
Slide 49: Bajaj Finserv Health – Business Metrics
Bajaj Finserv Health – Business Metrics REGISTERED USERS (CUMULATIVE) MONTHLY ACTIVE USERS 94,64,233 1,00,00,000 7,00,000 81,62,955 5,97,758 73,39,823 6,00,000 80,00,000 4,66,061 60,48,577 5,00,000 3,94,480 60,00,000 4,00,000 3,34,594 3,21,994 45,32,739 40,00,000 3,00,000 2,00,000 20,00,000 1,00,000
Slide 50: Bajaj Finserv Health – Network Metrics
Bajaj Finserv Health – Network Metrics DOCTOR NETWORK DENTAL NETWORK 8,16,092 9,00,000 3,00,000 7,59,118 8,00,000 2,39,596 2,28,579 6,64,826 2,50,000 7,00,000 6,00,000 1,83,680 2,00,000 4,97,443 3,45,041 5,00,000 1,42,741 1,50,000 4,00,000 3,00,000 81,353 1,00,000 2,00,000 69,577 70,694 73,433 74,90
Slide 51: ESG Initiatives and Focus Areas
ESG Initiatives and Focus Areas 50
Slide 52: Some key new initiatives during the year towards furtherance of ESG
Some key new initiatives during the year towards furtherance of ESG “ESG is not just the right thing to do, it is what will shape a better tomorrow.” More than 80% of Applicable Promoting government initiatives ~1 million people benefitted from Portfolio* Assets are ESG through PMJJBY scheme CSR pro
Slide 53: Illustrations on some of our ESG focus areas
Illustrations on some of our ESG focus areas Reaching Financial Services to Preserving and Protecting Governance Million of Indians Environment • Adoption of Board approved • Bajaj Finserv through its 4,500+ • Renewable power generated is higher ‘Responsible Business Conduct and branches and offices
Slide 54: Group Level HR Initiatives – One Finserv
Group Level HR Initiatives – One Finserv One Finserv – Group Level Talent & Succession Management Initiatives Employees are assessed across 3 dimensions – performance, potential, and leadership mindsets, which include - Customer Obsession - Founder’s Mindset - Being Responsible - Talent Builder - Dr
Slide 55: Thank You
Thank You
Slide 56: 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