Bajaj Finserv Q4 highlights: AUM at all-time high of ₹3.3 lakh crore, dividend declared; key takeaways

Bajaj Allianz General Insurance Company becomes the 3rd largest general insurer measured by gross direct premium. With AUM at ₹ 31,196 crore.

Revenue: Bajaj Finserv posts consolidated total income for Q4FY24 at ₹32,042 crore, which increased by 36% YoY for the quarter. The consolidated total income for FY24 stood at ₹ 1,10,383 crore which is an increase of 34% on a YoY basis.

Gross written premium: Bajaj Allianz General Insurance Company recorded a gross written premium of ₹ 20,630 crore, recording a market-leading growth of 33%, Bajaj’s General Insurance business became the 3rd largest general insurer measured by gross direct premium.

AUM: The company’s consolidated AUM for FY24 crossed ₹ 3,30,000 crore, showcasing a growth of 34% from the previous financial year which was at ₹2,47,379.

Bajaj Finserv Asset Management Ltd. received an encouraging response to its mutual fund schemes with assets under management (AUM) of ₹9,552 crore in the first year of launch.

Bajaj Finserv’s consolidated Gross NPA as of 31 March 2024 stood at 0.85% and Net NPA for the same period stood at 0.37%. The capital adequacy ratio increased to 22.52% (Including tier II capital as of 31 March 2024.)

Net profit

Consolidated PAT for the fourth quarter stood at ₹3,825 crore, which is 21% up YoY.. The consolidated PAT for FY24 stood at ₹ 8,148 crore which is an increase of 27% on a YoY basis.

Despite consolidated net profit which was impacted by approximately 4% due to regulatory action on two businesses, the net profit was at an all time high, which was offset by the favourable macroeconomic conditions and robust growth in customer franchise.

Key Ratios

The Claim Ratio for Bajaj Allianz General Insurance Company increased to 70.3% in Q4FY24, which was at 66.4% for the same period last year. The increase in claim ratio was due to higher claims in the health and motor TP segment, partially offset by lower commercial and crop claims.

Insurance

Bajaj Allianz Life Insurance Company Limited, AUM at ₹ 1,09,829 crore as on 31 March 2024, 21% growth YoY

The company’s new business premium showcased a growth of 20% in Q4FY24 at ₹3,953 crore which was at ₹3,297 crore for the same period last year. NBV for the same period stood at ₹480 crore which is an increase of 16% YoY for the quarter.

The solvency ratio for the company stood at 432%, much above the regulatory requirement of minimum of 150%.

Bajaj Allianz General Insurance Company, AUM at ₹ 31,196 crore as on 31 March 2024, 12% growth YoY

The claim ratio for the company increased to 70.3% in Q4FY24, which was at 66.4% for the same period last year. The increase in claim ratio was due to a higher in health and motor TP segments partially offset by lower commercial and crop claims.

The company’s combined ratio at 101.6% for Q4FY24 and for FY24 it improved to 99.9% despite natural catastrophes claims. The solvency ratio for the company stood at 349%, much above the regulatory requirement of minimum of 150%.

Gross NPA as of 31 March 2024 stood at 0.85% and Net NPA for the same period stood at 0.37%. The capital adequacy ratio increased to 22.52% (Including tier II capital as of 31 March 2024.

Dividend

The Board of Directors recommended a dividend of ₹1 per share - 100% on face value of ₹1. The total amount of dividend is ₹159.55 crore (Previous year ₹127.43 crore).

Stock Price: Ahead of the Q4 result, the shares of the company were down by 4.5% at ₹ 1,603.20. However, post the results, shares of Bajaj Finserv recovered from some losses to close 3.6% lower at ₹1,595 on the NSE.