Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Investor Presentation (March 2024)
62 slides from Bajaj Finserv's investor presentation, Mar 21, 2024
Slide 1: Intimation under Regulation 30 - Investors Presentation
21 March 2024 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 Bandra
Slide 2: International Investor Presentation – 9M FY24
BAJAJ FINSERV LIMITED International Investor Presentation – 9M FY24
Slide 3: 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 4: 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 5: 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 6: 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 7: 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 On 28th July 2022, Bajaj Finserv Limited Change in the Share Price of BFS and BFL vs Nifty 50 index on base year • BFL included in S&P BSE Sensex from Dec, announced a 5:1 Stock Split al
Slide 8: Bajaj Finserv – Consolidated Financial Highlights
Bajaj Finserv – Consolidated Financial Highlights Numbers in USD MM 1 USD = Rs.83 Financials Snapshot, FY18 FY19 FY20 FY21 FY22 FY23 CAGR 9MFY23 9MFY24 Growth Life Insurance (GWP) 913 1,067 1,175 1,449 1,943 2,345 21% 1,570 1,790 14% General Insurance (GWP) 1,143 1,337 1,546 1,521 1,661 1,866 10% 1,
Slide 9: Bajaj Allianz General Insurance
BAJAJ ALLIANZ GENERAL INSURANCE
Slide 10: 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. Emphasis on profitable growth. DIFFERENTIATORS Industry leading combined ratios consistent
Slide 11: BAGIC – Key financial metric: Performance vs. industry
BAGIC – Key financial metric: Performance vs. industry 1USD = Rs.83 BAGIC INDUSTRY GWP Growth - 5 Year CAGR 9% 9% Combined Ratio - 5 Year average 99.0% 118.3% Opex Ratio* - 5 year average 28.2% 31.4% Cumulative UW Profit for 5 years $ (14,889) $ 19 MM MM Cumulative PAT for 5 years $ 698 MM $ (683) M
Slide 12: BAGIC: Combined Ratio
BAGIC : Combined Ratio Combined Ratio 100.8% 99.6% 100.5% 101.5% 99.3% 96.7% 96.9% FY19 FY20 FY21 FY22 FY23 9M FY23 9M FY24 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, 20
Slide 13: 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 14: BAGIC – Multi Channel Distribution
BAGIC – Multi Channel Distribution Channel Mix 23% 27% 27% 30% 25% 31% 40% 37% 37% 42% 48% 42% 44% 34% 7% 4% 12% 3% 2% 2% 12% 10% 2% 3% 10% 10% 9% 9% 21% 20% 18% 16% 15% 14% 15% FY19 FY20 FY21 FY22 FY23 9M FY23 9M FY24 Individual Agents Corporate Agents - Banks Corporate Agents - Others Brokers Dire
Slide 15: BAGIC - Net Worth and Assets Under Management
BAGIC - Net Worth and Assets Under Management All numbers in USD MM BAGIC - Capital Invested - Networth 1USD = Rs.83 Accumulated profit* 97% of BAGIC Net worth as on 31 Dec 2023 continues to 1,332 grow its 1,181 1,152 1,063 Assets under 907 management 622 680 strongly 1,299 1,030 1,148 1,119 873 589
Slide 16: BAGIC – Customer obsession NPS score & Grievances
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 17: Key Technology & Customer Initiatives of 9M FY23-24 (1/2)
Key Technology & Customer Initiatives of 9M FY23-24: 1/2 Digital Journey Metrics Digital Agent Onboarding Digital Issuance From 100% in FY 22-23 -> From 95.64% in FY 22-23 -> 100% 96.33% Digital Payment From 94.12% in FY 22-23 -> 95.60% Key Initiatives Summary Care Angels (RM@hospital) IRDAI Grievan
Slide 18: Existing Digital Capabilities Enhanced & Scaled-up
Key Technology & Customer Initiatives of 9M FY23-24: 2/2 Existing Digital Capabilities Enhanced & Scaled-up Caringly Yours App Website Our Customer facing app remains as Our website is now available in 7 the most used app in Insurance different languages for our customers Industry 20 Mn visitors | 4
Slide 19: BAGIC – Risk Management
BAGIC – Risk Management Asset Quality Pricing & Underwriting 99% of the debt portfolio in AAA and Superior underwriting capability leading to sovereign assets low Combined Ratio consistently 90% of Equity in Nifty 50 stocks & 97.3% in Diversified exposure across business lines BSE 100 stocks
Slide 20: Bajaj Allianz General Insurance – Financial Highlights
Bajaj Allianz General Insurance – Financial Highlights Numbers in USD MM 1USD = Rs.83 Financial Snapshot 9M 9M FY 18 FY 19 FY 20 FY 21 FY22 FY23 CAGR Growth (IGAAP) FY23 FY24 Asset under Management 1,786 2,077 2,259 2,789 2,968 3,351 13% 3,130 3,650 17% (AUM) Capital Infused including 33 33 33 33 33
Slide 21: Bajaj Allianz Life Insurance
BAJAJ ALLIANZ LIFE INSURANCE
Slide 22: 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 23: BALIC – Key financial metric: Performance vs. industry
BALIC – Key financial metric: Performance vs. industry 1USD = Rs.83 BALIC INDUSTRY IRNB Growth - 5 Year CAGR (FY23/FY19) 32% 11% GWP Growth - 5 Year CAGR (FY23/FY19) 22% 11% Solvency ratio as on 31st March 2023 516% 217% AUM Growth – 5 years CAGR (FY23/FY19) 15% 10% NBV* - 5-year CAGR 58% 25% Fast
Slide 24: BALIC – Premium Growth
BALIC – Premium Growth All Figures in USD Million 1 USD = Rs. 83 New Business Renewal Premium Gross premium 3 Year 1,294 2,345 3 Year 3 Year CAGR 1,051 CAGR CAGR of 1,101 of 18% of 19% 1,943 20% 882 1,790 842 897 909 1,570 688 1,449 761 673 551 1,175 624 FY20 FY21 FY22 FY23 9M 9M FY20 FY21 FY22 FY23
Slide 25: BALIC: Diversified Distribution Mix
BALIC : Diversified Distribution Mix Agency Institutional Business Landscape Continued Focus on profitability and driving higher Building sustainable business through strong traditional Mix integration with distributor partners One of the largest agency Channels in private Life insurance space 1
Slide 26: BALIC: All-round Growth in Individual Rated New Business
BALIC : All-round Growth in Individual Rated New Business All Figures in USD Million 1 USD = Rs. 83 Whole Company Agency FY23 growth of 41% 628 FY23 growth of 43% 256 3 Year CAGR* of 39% 3 Year CAGR of 25% 24% 26% 481 204 444 179 387 162 297 130 132 232 FY20 FY21 FY22 FY23 9MFY23 9MFY24 FY20 FY21 FY
Slide 27: BALIC – Balancing Product Mix for Sustainability
BALIC – Balancing Product Mix for Sustainability New Business Product Mix IRNB Mix 31% 35% 41% 39% 38% 47% 42% 51% 57% 52% 60% 63% 61% 60% 7% 2% 3% 8% 11% 5% <1% 3% 4% 6% 1% 3% 1% 42% 25% 20% 29% 35% 58% 9% 27% 53% 48% 37% 39% 40% 43% 30% 28% 28% 23% 20% 19% 17% FY19 FY20 FY21 FY22 FY23 9M FY23 9M F
Slide 28: BALIC: Persistency
BALIC : Persistency 13th Month Persistency 25th Month Persistency 82.76% 83.05% 74% 82% 73.05% 73.09% 82% 72% 71% 71% 80% 79% 79% 68% Persistency - 13th month Persistency - 25th month FY19 FY20 FY21 FY22 FY23 9M FY23 9M FY24 FY19 FY20 FY21 FY22 FY23 9M FY23 9M FY24 37th Month Persistency 49th Month
Slide 29: New Business Value (NBV) & Embedded Value Update
New Business Value (NBV) & Embedded Value Update Figures in USD : MM 1 USD = Rs.83 Particulars 9M FY23 9M FY24 FY 19 FY 20 FY21 FY22 FY23 Annualized Premium** (ANP) 468 556 268 277 352 526 737 PERFORMANCE Present HIGHLIGHTS Value of Gross Premium 2,328 2,716 1,270 1,391 1,848 2,709 3,597 (PVGP) Net
Slide 30: Performance of Key Digital Assets and New Tech Initiatives – FY24
Performance of Key Digital Assets and New Tech Initiatives –FY24 Internal Assets WhatsApp chatbot 13% increase in for Empl. 19L sessions since 4L sessions since total logins in YTD Servicing 18k launch in Feb’23 launch in Feb’23 Dec FY24 over PY Unique Users Instab Customer EEZE WhatsApp 360 HR Bot
Slide 31: Bajaj Allianz Life Insurance – Financial Highlights
Bajaj Allianz Life Insurance – Financial Highlights Numbers in USD MM 1USD = Rs.83 Financials Snapshot 9M 9M FY18 FY19 FY20 FY21 FY22 FY23 CAGR Growth (IGAAP) FY23 FY24 Capital infused including 146 146 146 146 146 146 146 146 35% premium Net Worth 1,111 1,163 1,172 1,293 1,318 1,299 3% 1,303 1,327
Slide 32: Bajaj Finserv Health Limited
Bajaj Finserv Health Limited
Slide 33: 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 34: Bajaj Finserv Health – Overall Metrics & Services
Bajaj Finserv Health – Overall Metrics & Services Numbers in USD MM 1USD = Rs.83 REVENUE & OPEX 80 68 70 60 54 50 45 40 30 26 22 20 10 10 - FY 2021-22 FY 2022-23 9M FY 2023-24 Total Revenue ($ MM) Total Opex ($ MM) Services Offered Wellness Services Doctor Tele consult or In-clinic in Cashless Step
Slide 35: Bajaj Finserv Health – Business Metrics
Bajaj Finserv Health – Business Metrics REGISTERED USERS (CUMULATIVE) MONTHLY ACTIVE USERS 1,31,78,380 4,00,000 1,40,00,000 1,13,21,051 3,45,200 1,20,00,000 3,50,000 3,03,100 3,09,632 94,64,233 2,89,766 1,00,00,000 81,62,955 3,00,000 2,59,648 73,39,823 80,00,000 2,50,000 60,00,000 2,00,000 40,00,000
Slide 36: Bajaj Finserv Health – Network Metrics
Bajaj Finserv Health – Network Metrics DOCTOR NETWORK DENTAL NETWORK 7,92,540 9,00,000 95,000 3,00,000 25,000 2,65,927 93,000 2,53,243 8,00,000 6,58,799 6,84,653 2,50,000 7,00,000 91,000 2,18,689 2,10,681 5,99,660 6,19,813 89,000 1,78,509 6,00,000 2,00,000 23,000 85,663 87,000 5,00,000 84,443 83,254
Slide 37: Acquisition of Vidal Health Care and Synergies
Acquisition of Vidal health care and Synergies Acquisition of Vidal Health Care Services (VHC) for $ 39.16 MM to be settled in cash. One of the top health services management Companies and amongst the largest third-party administrators (TPA) in India Services 130 mn lives with a premium base of arou
Slide 38: OPD network with Vidal's IPD network
Augmentation of Business Model combining eBH’s OPD network with Vidal’s IPD network SUPERIOR CONSUMER PLATFORM & EXPERIENCE PRODUCT CONSUMER PAYER STACK STACK PROVIDER STACK Health App Corporates Doctors Health Insights OPD General/ Health Insurers* Diagnostics Cohort Formation Dental Life Insurers*
Slide 39: Bajaj Finserv Direct Ltd: Bajaj Markets & Bajaj Technology Services
Bajaj Finserv Direct Ltd Bajaj Markets & Bajaj Technology Services 38
Slide 40: 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 41: BFSI B2C Marketplace - Bajaj MARKETS
BFSI B2C Marketplace - Bajaj MARKETS Organic Visits Cumulative App Installs (In Thousands) (In Thousands) 30,000 80,000 74,159 26,582 70,000 25,000 61,087 21,627 60,000 20,000 18,296 50,000 15,000 40,000 30,000 10,000 18,639 20,000 5,000 10,000 0 0 FY 21-22 FY 22-23 9M FY 23-24 FY 21-22 FY 22-23 9M
Slide 42: B2B Digital Technology Services Clients
B2B Digital Technology Services Premium 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 & technology expertis
Slide 43: B2B | Bajaj Technology Services- Offerings
B2B | Bajaj Technology Services- Offerings Digital Data Business Managed Cloud Applications Engineering Analytics Services Tech • Mobile App & • Big Data • Machine • Public Cloud Services Web Processing Learning Mgmt. Offerings • Custom • Datawarehouse • AI Models • Migration & Applications Operatio
Slide 44: Bajaj Finserv Asset Management Company
Bajaj Finserv Asset Management Company
Slide 45: Key Strategic Pillars for Bajaj AMC
Key Strategic Pillars for Bajaj AMC Innovative, Future Focused, Differentiated AMC Investment Differentiated Technology as a Philosophy Products Differentiator INQUBE High Credit Quality Streamlined - Informational in Fixed Income digital Edge schemes touchpoints for - Quantitative Equity sc
Slide 46: Key Highlights – Emerging Businesses
Key Highlights – Emerging Businesses Numbers in USD MM 1USD = Rs.83 Bajaj AMC 9M FY24 9M FY23 FY23 FY22* Total Income 1.06 0.28 0.40 0.03 PAT (14.4) (2.05) - - Capital infused (as at 31 Dec 2023) 36.1 Net Worth (as at 31 Dec 2023) 16.6 List of Mutual Funds launched by AMC Name of the Fund Category A
Slide 47: Bajaj Finance
BAJAJ FINANCE
Slide 48: 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 49: BFL: Customer Franchise
BFL : Customer Franchise Q3 FY23 Q3 FY24 Total Franchise 66.05 Mn 80.41 Mn 51.30 Mn Credit segment filter 62.88 Mn 49.66 Mn Overall Cross sell franchise 61.13 Mn Non delinquent 54.08 Mn 43.86 Mn customers Cross sell franchise 38.58 Mn 49.28 Mn (58.4%)* (61.3%)* Customer Franchise addition Q2 FY23 Q3
Slide 50: 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 products & lifestyle financials & short-, medium- and 2,554 towns and
Slide 51: BFL: Key Takeaways
BFL : Key Takeaways Customer franchise as of 31 Dec 2023 up by 22%, Growing customer franchise 80.4 MM in 9M FY2024 from 66.1 MM for 9M FY2023 Consolidated AUM of $37,466 MM as on 31 Dec Strong AUM growth 2023, up by 35% from $27,812 MM as on 31 Dec 2022. Consolidated PAT of $1,280 MM for 9M F
Slide 52: Bajaj Finance – Financial Highlights
Bajaj Finance – Financial Highlights Consolidated numbers in USD MM 1USD = Rs.83 9M 9M Grow Financial Snapshot FY18 FY19 FY20 FY21 FY22 FY23 CAGR1 FY23 FY24 th Assets under 9,930 13,962 17,729 18,427 23,790 29,805 25% 27,81 2 37,466 35% management Income from operations 1,537 2,229 3,179 3,215 3,813
Slide 53: Bajaj Housing Finance Limited (BHFL)
BAJAJ HOUSING FINANCE LIMITED (BHFL)
Slide 54: BHFL – Key Strategic Differentiators
BHFL – Key Strategic Differentiators STRATEGY • Focus on building a low-risk balance sheet with medium ROE. Salaried HL to be the core growth driver over the next 3-5 years. • Continued focus towards OPEX management through cost out, process efficiencies and digitalization initiatives • Continuous f
Slide 55: BHFL: Key Takeaways
BHFL : Key Takeaways AUM of $10,353 MM as on 31 Dec 2023, up by 31% Strong AUM growth from $7,901 MM as on 31 Dec 2022. Home loans AUM grew by 21%, Loan against property grew by 15%, Lease rental discounting grew by 70%, Developer finance grew by 74% and Rural mortgages grew by 19%. AUM Mix Po
Slide 56: Bajaj Housing Finance Limited – Financial Highlights
Bajaj Housing Finance Limited – Financial Highlights Numbers in USD MM 1USD = Rs.83 Financial Snapshot FY18 FY19 FY20 FY21 FY22 FY23 CAGR1 9MFY23 9MFY24 Growth Assets under 430 212 3,940 4,683 6,424 8,341 81% 7,901 10,353 31% management Income from operations 13 139 319 380 454 683 122% 492 677 38%
Slide 57: ESG Initiatives and Focus Areas
ESG Initiatives and Focus Areas
Slide 58: 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.” ~1 million people benefitted from More than 80% of Applicable Promoting government CSR projects initiated under Portfolio* Assets are ESG initiatives
Slide 59: Illustrations on some of our ESG focus areas
Illustrations on some of our ESG focus areas Reaching Financial Services Preserving and Protecting Governance to 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 60: 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 61: Thank You
Thank You
Slide 62: 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