Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Non-Deal Roadshow (March 2019)
36 slides from Bajaj Finserv's roadshow presentation, Mar 29, 2019
Slide 1: Regulation 30 disclosure letter to stock exchanges
~BAJAJ \Iii FINSERV 29 March 2019 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, Mumbai 400 001 Bandra-Kurla
Slide 2: Bajaj Finserv Limited Investor Presentation – 9M FY19
BAJAJ FINSERV LIMITED Investor Presentation – 9M FY19* Financial Year : 1st April to 31st March
Slide 3: Bajaj Group Structure
BAJAJ GROUP STRUCTURE Bajaj Holdings & Investment Limited* 31.54% 39.16% Bajaj Auto Limited@ Bajaj Finserv Limited# 54.99% 74% 74% Bajaj Finance Limited Bajaj Allianz General Bajaj Allianz Life Insurance • Diversified Consumer, Rural, SME, Insurance Company Limited Company Limited Commercial & Mortg
Slide 4: Bajaj Finserv's Vision
BAJAJ FINSERV’ VISION Life cycle Investment / Asset Asset Health Income needs of Wealth acquisition protection Insurance Protection Individual & management SME Lending General Insurance Medical Expense Life Insurance Life Insurance customers Fixed Deposits Pensions Mutual funds Retail Consumer: All
Slide 5: Bajaj Finserv: Core Strengths
BAJAJ FINSERV : CORE STRENGTHS Outstanding heritage & One of oldest and most trusted business groups with PAN India presence with a high Impeccable reputation level of integrity and Corporate Governance Innovation and Technology Differentiation through innovative and disruptive products & services d
Slide 6: Opportunity Spectrum: Non Life Insurance
BAJAJ FINSERV’S OPPORTUNITY SPECTRUM: NON LIFE INSURANCE Non Life Per Capita Premium (USD) 2,542 938 18 159 174 113 297 India Russia China Brazil UK US Non-life per capita World Average Non Life Per Capita and penetration Non Life penetration to GDP to GDP way below advanced economies and lower than
Slide 7: Opportunity Spectrum: Life Insurance
BAJAJ FINSERV’S OPPORTUNITY SPECTRUM : LIFE INSURANCE Household Sector Financial Financial (Savings and Non Financial Savings) Savings are at levels Major contribution 48% Financial 57% 55% below 67% 63% 62% FY08, of Financial Savings post indicating Savings in Crisis fell untapped FY08 52% potentia
Slide 8: 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 • Ind AS are the IFRS compliant accounting standards adopted by India • Insurance companies’ stand-alone numbers are as per Indian GAAP, as Ind AS is not applicabl
Slide 9: Bajaj Finserv - Consolidated Financial Highlights
BAJAJ FINSERV - CONSOLIDATED FINANCIAL HIGHLIGHTS 1 USD = Rs.69 IGAAP Ind AS Financials Snapshot, USD MM FY14 FY15 FY16 FY17 FY18 CAGR 9M FY18 9M FY19 Life Insurance (GWP) 847 872 855 896 1,098 7% 711 807 General Insurance (GWP) 664 768 855 1,114 1,375 20% 974 1,115 Retail Finance 590 785 1,063 1,44
Slide 10: BFS and BFL Have Delivered Consistent Long-Term Returns to Shareholders
BFS AND BFL HAVE DELIVERED CONSISTENT LONG- TERM RETURNS TO SHAREHOLDERS 1USD = Rs.69 Bajaj Finserv Ltd. (BFS) & Bajaj Finance Ltd. (BFL) • BFL included in Nifty 50 index from Sep, 2017 Sep’17 – BFL QIP • BFL included in S&P BSE Sensex from Dec, 2018 $652 MM • BFS included in Nifty 50 index from Apr
Slide 11: Bajaj Finance
BAJAJ FINSERV BAJAJ FINANCE
Slide 12: BFL – Key Strategic Differentiators
BFL – KEY STRATEGIC DIFFERENTIATORS STRATEGY • Diversified financial services strategy seeking to optimise 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. DI
Slide 13: 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 14: BFL - Key Takeaways
BFL - KEY TAKEAWAYS 9M 2018-19 Consolidated AUM of $15,932 MM as on 31 Dec 2018, up by 41% from $11,309 MM as on 31 Dec 2017 ($12,193 MM as on 31 March 2018) BHFL a 100% subsidiary, fully operational in FY18; it’s AUM stood at $2,035 MM as on 31 Dec 2018 Consolidated PAT of $409 MM, up by 61% fr
Slide 15: Bajaj Allianz General Insurance
BAJAJ ALLIANZ GENERAL INSURANCE
Slide 16: 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 Industry leading combined ratios consistently over Strong selection of Risk & prudent time - BAG
Slide 17: BAGIC - Key Takeaways
BAGIC - KEY TAKEAWAYS 9M 2018-19 GDPI grew at 14.5% vs industry growth of 13.1% Profitability impacted by one off event viz. Kerala flood losses amounting to $7.8 MM and provision against exposure to IL&FS group $5.3 MM Strong increase in AUM to reach $2,359 MM as on 31 Dec 2018 ($2,148 MM as on
Slide 18: BAGIC - Virtual Points of Presence – An Industry First
BAGIC - VIRTUAL POINTS OF PRESENCE –AN INDUSTRY FIRST 1 USD = Rs.69 VSO Success Graph 2000 GWP growth 8.0% 84% 7.1% 7.0% GWP CAGR 1500 6.0% VSO : 352% 5.0% 4.4% 5.0% 1000 3.2% 4.0% 3.0% 500 1.4% 2.0% 35 69 43 79 1.0% 1 0.1% 12 0 0.0% FY15 FY16 FY17 FY18 9M FY18 9M FY19 No of VSOs VSO GWP VSO contrib
Slide 19: BAGIC - Diversified Distribution with Strong Network of Bancassurance Partners
BAGIC- DIVERSIFIED DISTRIBUTION WITH STRONG NETWORK OF BANCASSURANCE PARTNERS Channel Mix • Over 60 Corporate 120% Agent – Banca Relationships 100% • Some of the major 7% 5% 8% 7% 11% relationships are : 13% 12% 9% 10% 5% 80% - Citi Bank 19% 20% 19% 21% - HDFC Bank 24% 60% - Bajaj Finance Ltd. 16% 2
Slide 20: BAGIC's Product Suite – Retail Focused
BAGIC’s PRODUCT SUITE – RETAIL FOCUSED Motor Health Miscellaneous • Property • Private Cars • Retail health • Liability • Two Wheeler • Group health • Engineering • Commercial Vehicles • Critical Illness • Travel • Liability Only • Personal Accident • Extended Warranty • Long term two wheeler & • Go
Slide 21: BAGIC: Strong Profit and AUM Growth
BAGIC : STRONG PROFIT AND AUM GROWTH 1 USD = Rs.69 729 Strong profit growth resulting in high Net Worth (USD MM) 647 623 capital efficiency 689 512 607 583 FY14-FY18 404 472 CAGR 28% 323 364 241 282 201 40 40 40 40 40 40 40 FY14 FY15 FY16 FY17 FY18 9M FY18 9M FY19 Capital Invested Reserves Net worth
Slide 22: Bajaj Allianz Life Insurance
BAJAJ ALLIANZ LIFE INSURANCE
Slide 23: 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 24: BALIC - Key Takeaways
BALIC - KEY TAKEAWAYS 9M FY2018-19 Industry beating Individual Rated Premium growth since FY17, 9M FY19 growth at 14% to reach $153 MM. vs Industry growth of 8% in 9M FY19 Total New Business (NB) premium for 9M FY19 grew at 7% to reach $450 MM. Industry grew at 2% in 9M FY19 Persistency improv
Slide 25: BALIC - Individual Rated Business
BALIC - INDIVIDUAL RATED BUSINESS 1 USD = Rs.69 BALIC Individual Rated NB BALIC Individual Rated NB (Agency) (USD MM) (USD MM) 202 160 146 153 134 123 109 109 104 93 FY16 FY17 FY18 9M FY18 9M FY19 FY16 FY17 FY18 9M FY18 9M FY19 Institutional Business Individual Rated NB • BALIC’s focus is to grow re
Slide 26: BALIC - Improvements in Productivity
BALIC - IMPROVEMENTS IN PRODCTIVITY 1 USD = Rs.69 Individual Regular Premium Business Individual Regular Business Average Ticket Size (USD) Average Ticket Size(Agency) (USD) 9% increase 22% increase 911 961 882 777 727 659 636 485 537 422 FY16 FY17 FY18 9M FY18 9M FY19 FY16 FY17 FY18 9M FY18 9M FY19
Slide 27: BALIC - Balancing Product Mix for Sustainability
BALIC - BALANCING PRODUCT MIX FOR SUSTAINABILITY New Business Product Mix Individual Rated NB Mix 5% 4% 4% 6% 68% 66% 66% 65% 25% 24% 22% 33% 32% 34% 34% 35% 70% 72% 74% 61% FY17 FY18 9M FY18 9M FY19 FY17 FY18 9M FY18 9M FY19 Individual - Unit Linked Individual - Par Individual Group Individual - No
Slide 28: BALIC - Diversified Distribution
BALIC - DIVERSIFIED DISTRIBUTION Total New Business Channel Mix Individual New Business Channel Mix 1% 1% 1% 3% 3% 3% 2% 4% 5% 5% 4% 1% 5% 2% 3% 6% 8% 7% 10% 4% 8% 7% 14% 7% 8% 7% 12% 85% 28% 27% 81% 10% 27% 79% 72% 25% 61% 57% 60% 47% FY17 FY18 9M FY18 9M FY19 FY17 FY18 9M FY18 9M FY19 Direct Selli
Slide 29: BALIC - AUM & Capital Efficiency
BALIC - AUM & CAPITAL EFFICIENCY 1 USD = Rs.69 AUM Mix (USD MM) BALIC Net worth (USD MM) AUM CAGR OF 9% (FY16-FY18) No Capital infusion after FY08 PERFORMANCE HIGHLIGHTS FY19 AUM grew by 5% over FY18 7,926 Net worth CAGR 10% (FY16 – FY18) 7,532 7,594 7,141 6,392 1,336 1,377 1,311 1,228 1,161 1,202 3
Slide 30: 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 31: Annexures
BAJAJ FINSERV Annexures
Slide 32: Ratings of Group Companies
RATINGS OF GROUP COMPANIES Bajaj Finance • Long term rating of ‘BBB-/Stable and Short-term rating of ‘A-3’ by S&P Global Ratings • Credit rating for FD program is FAAA/Stable by CRISIL & MAAA (Stable) by ICRA • Credit rating for Long Term Debt Program is AAA/Stable by CRISIL, ICRA, CARE & India Rati
Slide 33: Bajaj Finance – Financial Highlights
BAJAJ FINANCE – FINANCIAL HIGHLIGHTS 1USD = Rs.69 IGAAP@ Ind AS# FY18 Financial Snapshot, USD MM FY14 FY15 FY16 FY17 (Consol.) CAGR 9M FY18 9M FY19 Assets under management 3,487 4,697 6,410 8,724 12,179 37% 11,309 15,932 Income from operations 590 785 1,063 1,448 1,952 35% 1,344 1,918 Interest expen
Slide 34: Bajaj Allianz General Insurance – Financial Highlights
BAJAJ ALLIANZ GENERAL INSURANCE – FINANCIAL HIGHLIGHTS 1USD = Rs.69 IGAAP Financials Snapshot, USD MM FY14 FY 15 FY 16 FY 17 FY18 CAGR 9M FY18 9M FY19 Capital Infused including premium 40 40 40 40 40 40 40 Net Worth 241 323 404 512 647 28% 623 729 Cash & Investments 1,010 1,139 1,335 1,569 2,148 21%
Slide 35: Bajaj Allianz Life Insurance – Financial Highlights
BAJAJ ALLIANZ LIFE INSURANCE – FINANCIAL HIGHLIGHTS 1USD = Rs.69 IGAAP Financials Snapshot, USD MM FY14 FY15 FY16 FY17 FY18 CAGR 9M FY18 9M FY19 Capital infused including premium 175 175 175 175 175 175 175 Net Worth 851 978 1,106 1,228 1,336 12% 1,311 1,377 Assets under management 5,620 6,312 6,392
Slide 36: Thank You
BAJAJ FINSERV Thank You