Bajaj Finserv

“The Company is now on track to hit the planned quarterly breakeven target in Q4 of this year.”

“Bajaj Finserv Direct, like I indicated in my opening remarks, will hopefully break even in this year last quarter, on a quarters basis and on a full year basis next year.”

“Again, endeavour is next year, last quarter, hopefully we should try to break even there as well.”

“GWP for Bajaj General grew at 10% for the quarter to about INR 7,056 crores, which is marginally lower than the industry growth of about 12%.”

“However, if we were to exclude the bulky tender-driven crop and government health business, the GWP for the Company increased by a very healthy 21%, which is significantly higher than the industry growth of close to 13%.”

“The retail weighted received premium grew at 5% to about INR 1,942 crores. Growth was milder compared to the industry.”

“Retail protection contributed 11% on the overall retail business, growing at a significant 51% YoY. Group protection business also registered a very healthy growth of 81% for the quarter.”

“The Company's diversified business model has enabled it to record a strong AUM growth of 26% for the quarter at about INR 584,000 crores.”

“Hence, the sales of cars is not going to reduce, nor is the coverage of new vehicles going to reduce.”

“The VNB for the quarter grew at 40% to INR 512 crores and the NBM was up at 21.6% for the quarter as against 17.1% for the same quarter last year, an expansion of healthy 4.5%.”

“I'm also happy to inform that on a rolling 12-month basis, despite the impact of GST, our Life Insurance business has crossed the NBM of 20% and ended at 20.8%.”

“However, from a sustainability perspective, the loss ratio in health is something that we envision will come down because the tender business is for two plus one years, as we have mentioned before.”

“On the motor side, as you said, it is driven by NATCAT. Therefore, we expect it to not continue at the rate as it is in the next quarter.”

“More than 67% is cashless. Obviously, that is the package rate.”

“Finally, both the insurance companies continue to be financially strong with solvency of Bajaj Life at 255% and General at about 230% and are well poised to weather any external adversity.”

“Currently, the situation is that we are sitting on a surplus of about INR 5,000 crores of capital, to be precise, about INR 4,700 crores.”

“Capital adequacy remains strong at 20.3% as at 30th September.”

“Capital adequacy ratio stood at 21.2% as on 30th September.”

“They have not been taking capital, we don't see that there will be any need for capital going forward.”

“On 1st October 2026, Bajaj Finance's Board has approved an additional capital raise of INR 11,700 crores through equity shares by QIP to qualified institutional buyers”

“On 1st October 2026, Bajaj Finance's Board has approved an additional capital raise of INR 11,700 crores through equity shares by QIP to qualified institutional buyers and INR 5,800 crores through preferential issue of warrants convertible into equivalent number of equity shares to Bajaj Finserv Limited.”

“The BFL Board's decision on raising additional capital, subject to shareholders' approval is driven by various factors, including the strong India growth story, underlying growth momentum of the Company and its subsidiaries and increasing focus on building resilience across various dimensions of business.”

“For all these businesses put together, less than INR 2,000 crores in the next 18 months, is what we believe we'll need.”

“Then obviously, there are other investments which we've called out, 25% of which has to happen now and the balance over 18 months.”

“Bajaj Life has also commenced operations in GIFT City in the month of October and is also expected to start the retail business with IndusInd Bank from Q3 of this year.”

“With respect to the ALTs business, happy to confirm that we've commenced business operations with the launch of our PMS business and the first close of our real estate AIF which happened this quarter.”

“With respect to the reinsurance business, we are in the process of filing for necessary approvals with IRDAI.”

“What we've recently called out our venture in reinsurance, if you recall, in the last quarter, I had indicated in the next 2 to 3 years, we'll probably need INR 500 crores.”

“Probably in another year, we'll need about INR 1,100 crores there.”

“The lower growth in AUM is largely attributable to the buyback and the dividend payout last quarter totaling to close to INR 3,500 crores.”

“This was largely impacted due to the NATCAT claims of INR 75 crores net during the quarter. Accordingly, the combined ratio was also elevated at 104.5% for the quarter as against 102.3% for the same period last year.”

“PAT for the Company de-grew for the quarter at INR 420 crores versus INR 517 crores for the same period last year. This was largely attributable to lower capital gains due to the volatile equity markets and the challenging external macro environment.”

“And there is also an impact of about INR 50 crores due to the capital reduction we've done through buyback and dividend in the last 6 months.”

“Profit after tax for the Company was at INR 55 crores as compared to INR 13 crores for the same period last year. However, the PAT growth was on a lower base since last year, we had a one- time GST impact of INR 112 crores, partially offset by lower capital gains attributable to the external macro environment.”

“Q2 also includes a prudent management and macroeconomic provision of close to INR 340 crores.”

“However, as seen in the past, any large-scale initiative, which aims to improve the customer proposition may lead to short-term impact for the insurers as well as distributors in this case.”

“We have been seeing some persistency dips over certain cohorts, which is in line with the industry, and the Company is making efforts to improve the same.”

“However, revenue for the quarter registered a degrowth on account of restructuring required in some partnerships attributable to the RBI's revised circular on business conduct by NBFCs.”

“So we'll have to wait and watch how H2 for the Company plays out given the impact of these 2 circulars.”

“I think that's a trend we are seeing that every 3 years, you'll see one area having a large event, but otherwise, it's sustainable. Hence, we've not seen any real need to change our retention limits at this stage.”

“The consolidated total income grew 17% to INR 43,416 crores, consolidated profit after tax grew a healthy 25% to INR 5,952 crores and consolidated profit after tax attributable to the owners grew 23% to INR 2,758 crores.”

“Further on this subject, in line with the recent regulations from IRDAI, both the insurance companies would transition to Ind AS from 1st of April 2027.”

“The annualized ROE for the Company at 200% solvency stands at 16.2%.”

“Accordingly, the gross and the net NPAs stood at 1.06% and 0.42%, respectively, much lower than the same period last year.”

“In terms of retention, that is something that is looked at annually, and we will make that strategic decision at the end of the year.”