Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Q1 FY23 Earnings Presentation
59 slides from Bajaj Finserv's earnings presentation, Jul 28, 2022
Slide 1: Regulation 30 filing cover letter to stock exchanges
28 July 2022 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: Bajaj Finserv Limited Investor Presentation – Q1 FY23
BAJAJ FINSERV LIMITED Investor Presentation – Q1 FY23* *Financial year 2022-23 Note: From Q1 FY23 Bajaj Finserv Limited has started reporting its numbers in Investor Presentation in Rs. Crores. Till FY22, the same was in Rs. Million.
Slide 3: Bajaj Group Structure
Bajaj Group Structure Bajaj Holdings & Investment Limited (Listed) @ 33.43%2 @ 39.16%1 51% Bajaj Auto Limited (Listed) Maharashtra Scooters Limited (Listed) Bajaj Finserv Limited (Listed) Auto Business Arm Auto spare parts Manufacturer Financial Services Arm 52.49%3 74% 74% 80.13% 100% Bajaj Allianz
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 General, Health & Life ULIPs*, Fixed Loan (Personal,
Slide 5: Bajaj Finserv – Established businesses with strong track record
Bajaj Finserv – Established businesses with strong track record Non-Bank with strategy & structure of a bank Diversified financial services strategy with an optimal mix of risk and Bajaj Finance Limited sustainable profit Focused on mass affluent & above with a strategy to cross-sell with smar
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 Bajaj Finserv Health technology and financial services on a digital platform to bring quality Limited healthcare closer to consu
Slide 7: Role of Bajaj Finserv
Role of Bajaj Finserv 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 a
Slide 8: Bajaj Finserv performance highlights – Q1 FY23
Bajaj Finserv performance highlights – Q1 FY23 All Figures in Rs. Crore Performance Highlights of Q1 FY23 over Q1 FY22 (Ind AS) CY 15,888 1,309 40,638 4,739 14% 57% 11% 20% PY 13,949 833 36,600 3,934 Total Revenue PAT* Net Worth Net Worth (Consolidated) (Consolidated) (Consolidated) (Standalone) • B
Slide 9: Consolidated profit components – Q1 FY23 (BFS Share)
Consolidated profit components – Q1 FY23 (BFS Share) All Figures in Rs. Crore Consolidated profit# components for Q1 FY23 (Ind AS) Intercompany Adjustments (Net of Tax)# adjustments Unrealized MTM* Loss on BAGIC Investments – Rs. 147 Cr Bajaj Finserv- Unrealized MTM* Loss on BALIC Investments –
Slide 10: Q1 FY23 Highlights
Q1 FY23 Highlights All Figures in Rs. Crore Highlights of Group Companies BAJAJ FINSERV# Q1 FY23 Q1 FY22 Growth BAJAJ FINANCE# Q1 FY23 Q1 FY22 Growth Total Revenue 15,888 13,949 14% AUM 204,018 159,057 28% Net worth 40,638 36,600 11% Total Income 9,283 6,743 38% PAT 1,309 833 57% PAT 2,596 1,002 159
Slide 11: Bajaj Finance Limited
BAJA FINSERV Bajaj Finance Limited 10
Slide 12: BFL – Key Strategic Differentiators
BFL – Key Strategic Differentiators STRATEGY • Diversified financial services strategy seeking to optimise risk and profit, operate a sustainable business model and deliver a superior ROE and ROA • Focused on continuous innovation by transforming customer experience thereby creating growth opportuni
Slide 13: 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 products SMEs with an average products covering short, model in 2,218 locations & lifestyle lender in India annual sales of aro
Slide 14: BFL – Key Highlights
BFL – Key Highlights Q1 FY 2022-23 Q1 FY23 AUM was at Rs. 2,04,018 Cr vs Rs. 1,56,115 Cr last year (31% growth); Core AUM accretion in Q1 FY23 was approximately ~ Rs. 11,931 Cr AUM & Business 74.2 Lakh new loans in Q1 FY23 as against 46.3 Lakh in Q1 FY22 Franchise Growth Acquired 27.3 Lakh new
Slide 15: BFL – Key Highlights
BFL – Key Highlights Q1 FY 2022-23 Profit after tax (PAT) for Q1 FY23 increased by 159% to Rs. 2,596 Cr v/s Rs. 1,002 Cr in Q1 FY22 mainly on account of robust AUM growth, higher Profitability & Capital net interest income and better portfolio performance Position Capital adequacy remained stron
Slide 16: BFL – Q1 FY23 highlights
BFL – Q1 FY23 highlights All Figures in Rs. Crore Performance Highlights of Q1 FY23 over Q1 FY22 (Ind AS) CY 1,98,352 9,283 2,596 30% 38% 159% PY 1,53,143 6,743 1,002 Book Size Total Income Profit After Tax CY 1.3% 5.8% Capital Adequacy stands at 26.16% as of 30 June 2022 vs 28.57% as of 30 June 2
Slide 17: BFL : Book Size and Revenue
BFL : Book Size and Revenue All Figures in Rs. Crore Book Size Total Income FY22 growth of 30% Q1 FY23 FY22 growth of 19% Q1 FY23 growth of 30% 31,640 growth of 38% 191,423 198,352 26,386 26,683 141,376 146,687 153,143 9,283 6,743 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 Net Int
Slide 18: BFL : Loan Loss Provision and Operating Expenses
BFL : Loan Loss Provision and Operating Expenses All Figures in Rs Crore Loss Provision and Net NPA% GNPA and NNPA as on 30 June 2022 stood at 1.25% 2.00% & 0.51% respectively as compared to 1.60% and 60,000 1.46 0.68% as on 31 March 2022 45,000 Provisioning coverage ratio (PCR) of 60% on stage
Slide 19: Bajaj Allianz General Insurance
Bajaj Allianz General Insurance 18
Slide 20: 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 over Strong selection of Risk
Slide 21: BAGIC – Key Highlights
BAGIC – Key Highlights Q1 2022-23 Industry beating GDPI growth of 25.4% in Q1 FY23 as against Industry# growth of Revenue Growth 22.7% Ex. Crop & Govt. Health, Q1 FY23 GDPI grew by 19.7% Ex. Crop & Govt. Health growth of 19.7% was attributable to Motor (23%), Fire (18%), Marine (32%), Liabilit
Slide 22: BAGIC : Q1 FY23 Highlights
BAGIC : Q1 FY23 Highlights All Figures in Rs Crore Performance Highlights of Q1 FY23 over Q1 FY22 CY 3,119 CY 3,009 1,758 1,852 25% 19% 15% 2% PY 2,494 PY 2,522 1,535 1,815 Gross Written GWP Excl. Crop & Net Written Premium Net Earned Premium Premium (GWP) Govt. Health 411 4.84% 14% 362 4.95% Profit
Slide 23: BAGIC : Combined Ratio
BAGIC : Combined Ratio Combined Ratio 103.4% 104.6% 100.8% 99.6% 96.9% FY20 FY21 FY22 Q1 FY22 Q1 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, 2013. (Net claims incurr
Slide 24: BAGIC : Profit after tax and Capital efficiency
BAGIC : Profit after tax and Capital efficiency All Figures in Rs. Crore PAT 1,330 1,339 Q4 FY22 PAT growth of 14% 999 362 411 FY20 FY21 FY22 Q1 FY22 Q1 FY23 BAGIC - Capital Invested - Networth Accumulated profit* 97% of Net worth as on 30 June 2022 Total Capital infused is Rs. 277 Cr No Capital inf
Slide 25: BAGIC : Consistently amongst top private insurers in Gross Premium
BAGIC : Consistently amongst top 2 private insurers in terms of Gross Premium Industry GDPI Trend (Rs. Cr.) Q1 FY23 GDPI growth of 23% 2,05,732 1,78,689 1,85,595 1,13,770 1,30,614 1,05,647 43,903 54,125 73,042 71,826 75,118 25,193 33,499 18,709 20,626 FY20 FY21 FY22 Q1 FY22 Q1 FY23 PSU Private Insur
Slide 26: BAGIC : Balanced Product Mix
BAGIC : Balanced Product Mix Business Mix 13% 9% 10% 14% 14% 20% 19% 15% 34% 32% 13% 18% 19% 9% 9% 14% 10% 14% 5% 6% 8% 6% 6% 41% 38% 35% 35% 34% FY20 FY21 FY22 Q1 FY22 Q1 FY23 Motor (Retail) Health (Retail) Group Health Prop, Liability, Engg Agri (Crop Insurance) Others BAGIC’s excluding Crop & g
Slide 27: BAGIC: Diversified Channel Mix
BAGIC: Diversified Channel Mix Channel Mix 27% 27% 30% 25% 26% 37% 42% 42% 43% 45% 4% 3% 2% 12% 10% 2% 11% 2% 10% 10% 20% 18% 16% 20% 16% FY20 FY21 FY22 Q1 FY22 Q1 FY23 Individual Agents Corporate Agents - Banks Corporate Agents - Others Brokers Direct Business Bancassurance Agency & Retail OEMs* &
Slide 28: BAGIC : Assets Under Management
BAGIC : Assets Under Management AUM (cash and investments) Q1 FY23 growth of 8% 25,362 BAGIC 24,633 23,150 23,505 continues to grow its AUM 18,746 strongly Investments Rs. Crore are largely in fixed income securities Investment Leverage of 2.90 as on 30 June 2022 FY20 FY21 FY22 Q1 FY22 Q1 FY23 99.1%
Slide 29: Key Technology & Customer Initiatives of Q1 FY2023
Key Technology & Customer Initiatives of Q1 FY2023 Key Metrics Digital Agent Onboarding Q1 FY23 Digital Issuance Q1 FY23 From 100% in FY 21-22 -> 100% From 94.48% in FY 21-22 -> 94.85% NPS* Score Motor Health Digital payment Q1 FY23 FY21 FY22 FY21 FY22 From 91.23% in FY 21-22 -> 91.82% 65 ↑ 70 63 ↑
Slide 30: Roll-out of New Cloud-based Policy Admin System
Roll-out of New Cloud-based Policy Admin System * One of the early adopters of cloud, our Travel line of business was made live in 2019 on the new policy admin system – developed in partnership with TCS. This was followed by Retail Health & Motor TP lines of business Cloud Native Highlights of the n
Slide 31: BAGIC : Risk Management
BAGIC : Risk Management Asset Quality Pricing & Underwriting 99.1% of the debt portfolio in AAA and Superior underwriting capability leading to low sovereign assets Combined Ratio consistently 91.7% of Equity in Nifty 50 stocks & 93.7% in Diversified exposure across business lines & BSE100 s
Slide 32: Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance 31
Slide 33: 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 34: BALIC – Key Highlights
BALIC – Key Highlights Q1 2022-23 In Q1 FY23, IRNB grew by 81% (vs private players growth of 47% & LIC growth of 35%. Overall industry growth of 42%); Revenue Growth & Market Market share in IRNB terms increased from 6.7% to 8.3% among private players Share BALIC was the 3rd fastest growing Li
Slide 35: BALIC – Q1 FY23 Highlights
BALIC – Q1 FY23 Highlights All Figures in Rs. Crore Performance Highlights of Q1 FY23 over Q1 FY22 CY 895 1,913 1,452 4,369 81% 151% 19% 74% PY 493 762 1,220 2,516 Individual Rated NB Group NB Renewal Premium Gross Written Premium CY 124 135 527% Solvency Ratio as at 48% >400% 30 Jun 2022 PY 84 25 P
Slide 36: BALIC – Growth momentum continues
BALIC – Growth momentum continues All Figures in Rs Crore New Business Renewals GWP 1,452 2 years CAGR* at 2 years CAGR* at 2 years CAGR* at 4,369 98% 2,917 23% 60% 1,220 958 2,516 1,296 1,700 742 Q1 FY21 Q1 FY22 Q1 FY23 Q1 FY21 Q1 FY22 Q1 FY23 Q1 FY21 Q1 FY22 Q1 FY23 All the topline related metri
Slide 37: BALIC : Individual Rated New Business
BALIC : Individual Rated New Business All Figures in Rs Crore Whole Company Agency FY22 growth of 49% FY22 growth of 36% 3,686 Q1 FY23 growth 1,489 Q1 FY23 growth of 81% of 63% 2,468 1,098 Agency continues to stride ahead Industry beating growth with substantial growth 895 387 493 155 238 331 FY21 F
Slide 38: BALIC : Balanced product mix
BALIC : Balanced product mix IRNB Mix Share of Non-par savings stands at 31% in Q1 FY23 39% 39% 38% Individual - Unit Linked 41% 51% Individual - Non Par Protection 3% 7% 3% 6% Individual - Non Par Savings 1% 27% 20% 31% 20% 29% Individual - Annuity 0% 11% 12% 2% 9% Individual - Par 28% 23% 20% 22%
Slide 39: BALIC : Diversified Distribution Mix
BALIC : Diversified Distribution Mix Individual Rated New Business Channel-wise Greater balance between institutional and Mix proprietary retail channels - Agency, Institutional 11% 11% 9% 9% 8% Business and BALIC Direct contributing 43%, 49% and 8% respectively in Q1 FY23 (in IRNB terms) 33% 43%
Slide 40: BALIC : Persistency
BALIC : Persistency Persistency 13th Month Persistency 25th Month 75% 83% 74% 82% 82% 80% 71% 71% Persistency - 13th Month Persistency - 25th Month FY21 FY22 Q1 FY22 Q1 FY23 FY21 FY22 Q1 FY22 Q1 FY23 Persistency 37th Month Persistency 49th Month Persistency 61st Month 62% 62% 66% 66% 49% 48% 56% 43%
Slide 41: Digital Initiatives to offer best in class customer experience
Digital Initiatives to offer best in class customer experience Digital assets Key Internal Assets Digibanca WhatsApp for ICs* Smart Assist INStab iManage Self & customer Digibanca Assist sales to Module for new Module for SMs for servicing WhatsApp Online buy virtually connect business login & self
Slide 42: Roll-out of New Cloud-based Policy Admin System
Roll-out of New Cloud-based Policy Admin System Adaptive New-age Technology • First ever cloud native microservice ready policy admin system • Powered by cloud technology & extensible user interface • Event-based architecture Quick Release into the market • Quicker incorporation of regulatory/financ
Slide 43: BALIC : Assets Under Management (AUM) & Net Worth
BALIC : Assets Under Management (AUM) & Net Worth AUM (Mix) • AUM as of 30 June 2022 grew by 8%; Growth in UL AUM stands at 1%; Traditional AUM grew by 85,623 12% 83,072 73,773 77,270 52,196 Rs Crore 51,765 44,917 46,259 • Of the UL Funds of 31,307 cr, 28,855 33,427 31,011 31,307 69% is equity as on
Slide 44: BALIC: Risk Management
BALIC: Risk Management Prudent assumptions while product pricing Product Pricing Stress and scenario testing performed at pricing stage Regular review of pricing based on prevailing interest rates Interest rate risk on the Individual Non-Participating Savings, Protection and Annuity portfoli
Slide 45: Bajaj Finserv Direct Ltd (Bajaj Markets)
Bajaj Finserv Direct Ltd (Bajaj Markets) 44
Slide 46: Bajaj MARKETS
Bajaj MARKETS STRATEGY BFSD is a unique & diversified Marketplace for Financial Services and eCommerce which acquires a large number of consumers and cross-sells products by leveraging Technology & Analytics. DIFFERENTIATORS Open Architecture platform offers Financial products’ variants across Loa
Slide 47: Bajaj MARKETS – key metrics
Bajaj MARKETS Organic Visits (Financial Services) Total Revenue (Rs lakh) Total Opex (Rs lakh) 6,000 12,000 10,436 Thousands 4,896 5,000 10,000 9,278 4,000 8,000 7,321 3,275 3,308 6,872 6,021 7,942 2,685 2,335 3,000 6,000 6,577 2,000 4,000 5,614 4,785 1,000 3,756 2,000 0 - Q1 FY21-22 Q2 FY21-22 Q3 F
Slide 48: Bajaj Finserv Health Limited
Bajaj Finserv Health Limited 47
Slide 49: 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 50: Bajaj Finserv Health – Business Metrics
Bajaj Finserv Health – Business Metrics REGISTERED USERS (CUMULATIVE) MONTHLY ACTIVE USERS 70,00,000 5,00,000 4,67,121 62,08,966 4,42,510 4,15,496 60,00,000 3,53,532 48,02,926 4,00,000 50,00,000 3,01,399 36,82,526 3,00,000 40,00,000 30,00,000 25,10,886 2,00,000 20,00,000 13,55,421 1,00,000 10,00,000
Slide 51: Additional Information – BAGIC
Additional Information – BAGIC
Slide 52: BAGIC : Investment Performance
BAGIC : Investment Performance All Figures in Rs Crore Total Funds# Investment Leverage Investment Portfolio mix 3.32 3.08 2.79 2.96 2.90 for Q1 FY23: Corporate bonds 29.0%, G-Sec 23,016 24,401 23,501 24,542 18,778 54.3%, Equity* 7.5%, and Money Market 9.3% Unrealized loss of Rs. 378 crore as on
Slide 53: BAGIC : LOB wise Net Loss ratio
BAGIC : LOB wise Net Loss ratio Net Loss Ratio Line of Business Q1 FY23 Q1 FY22 Fire 71.8% 80.5% Marine Cargo 88.4% 91.1% Motor OD 82.2% 56.4% Motor TP 88.6% 78.5% Motor Total 86.0% 68.9% Engineering 121.4% 68.4% Personal Accident 61.1% 40.4% Health (retail + group) 76.7% 119.6% Total 77.9% 75.9% To
Slide 54: BAGIC : LOB Growth (Major LOBs)
BAGIC : LOB Growth (Major LOBs) GDPI Growth Line of Business Q1 FY23 BAGIC Growth Q1 FY23 Industry Growth Commercial Lines** 18.1% 17.9% Motor OD 21.0% 29.8% Motor TP 24.5% 26.0% Motor Total 23.0% 27.5% Personal Accident + Travel 84.9% 7.0% Health (retail + group)* 12.2% 20.4%# Total 25.4% 22.7% Tot
Slide 55: Additional Information – BALIC
Additional Information – BALIC
Slide 56: BALIC : Investment Performance (Shareholder Fund)
BALIC : Investment Performance (Shareholder Fund) All Figures in Rs Crore AUM~ Asset mix as on 30 June 2022: Corporate Bonds 10,990 26.7%, G-Sec 43.4%, Equity 10,489 15.2%, FD & other assets 10,229 5.8% (on Market value 10,056 basis) 9,493 Capital gains booked in Q1 FY23 were Rs. 84.8 cr FY20 FY
Slide 57: BALIC : Regular Premium Ticket Size
BALIC : Regular Premium Ticket Size All Figures in Rs. Whole Company Non Par Savings FY22 Q1 FY23 FY22 Q1 FY23 increase of 34% increase of 5% increase of 41% increase of 50% 77,634 73,485 59,976 69,851 51,650 61,716 57,782 36,579 39,929 27,437 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1
Slide 58: Thank You
BAJAJ FINSERV Thank You
Slide 59: 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