Bajaj Finserv

Bajaj Finserv reported a 14% year-on-year growth in consolidated total income, reaching Rs.36,596 crores for Q4 FY25, up from Rs.32,042 crores in the same period last year. Consolidated Profit After Tax (PAT) also increased by 14% to Rs.2,417 crores, compared to Rs.2,119 crores previously. The company highlighted that its press release and investor deck were uploaded on its website, providing detailed financial information.

Bajaj Allianz General Insurance (BAGIC) saw its gross written premium degrow by 13% to Rs.4,326 crores in Q4 FY25, primarily due to the impact of the '1/n' accounting regulation and a reduction in bulky crop and government health businesses. Excluding these factors, GWP was flat at approximately Rs.3,800 crores. PAT for BAGIC declined 4% to Rs.363 crores, while the combined ratio stood at 104.8%, up from 101.6% last year. Despite this, the underwriting loss was nominal at Rs.3 crores, and AUM grew 6% to Rs.33,115 crores.

Bajaj Allianz Life Insurance (BALIC) recorded a 13% growth in gross written premium to Rs.9,237 crores. However, PAT degrew significantly by 61% to Rs.41 crores, mainly due to lower realized gains and higher tax provisioning. The Value of New Business (VNB) grew 14% to Rs.549 crores, and the New Business Margin (NBM) expanded to 22.1% from 18% last year, reflecting the 'BALIC 2.0' strategy focused on sustainable and profitable growth. The company emphasized increased focus on protection business, with retail protection growing 63% to Rs.393 crores in FY25.

Bajaj Finance (BFL) continued its strong performance, with AUM growing 26% to Rs.4,16,661 crores and PAT increasing 17% to Rs.4,480 crores. New loans booked were up 36% to over 1 crore. Bajaj Housing Finance (BHFL) also delivered a robust quarter, with AUM growing 26% to Rs.1,14,684 crores and PAT surging 54% to Rs.587 crores. Both entities maintained healthy asset quality metrics, with BFL's GNPA at 96 bps and NNPA at 44 bps, and BHFL's GNPA at 29 bps and NNPA at 11 bps.

Bajaj Finserv Health (BFH) conducted 2.8 million health transactions in Q4 FY25 and expanded its provider network to 87,000 doctors and 15,000 hospitals. Bajaj Markets attracted 8.6 lakh consumers and facilitated Rs.1,865 crores in lending disbursements. Bajaj Finserv Asset Management Company (AMC) achieved an AUM of over Rs.20,000 crores, growing 17% from the previous quarter, making it one of the fastest to reach this milestone. The company highlighted its focus on scaling these platform businesses.

Bajaj Finserv provided an update on the ongoing process for Allianz's exit from the joint venture agreement. The company and its insurance subsidiaries are currently seeking regulatory approvals from both CCI and IRDAI. Management stated there is no further update on the matter as of the call date. This transition is expected to grant Bajaj Finserv 100% ownership, offering greater strategic flexibility for future growth initiatives.

Management expressed cautious optimism for H2 FY26, expecting a return to growth despite potential geopolitical and external environment volatility in H1. The strategic focus includes calibrated growth for BAGIC with strong underwriting, continued VNB growth and margin expansion for BALIC, and scaling up platform businesses like Finserv Direct and Health. The company reiterated its long-term commitment to profitable growth and creating sustainable value for policyholders, leveraging its strong capital position and brand.