Bajaj Finserv Limited Investor Presentation PDF Q1 FY 2025

25 July 2024 To To Corporate Relations Department. Corporate Listing Department. BSE Limited...

25 July 2024 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 (East), Mumbai 400 051 BSE Code: 532978 NSE Code: BAJAJFINSV Dear Sir/Madam, Sub: Investor Presentation for the quarter ended 30 June 2024 Further to our letter dated 16 July 2024 and pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule Ill thereto, please find enclosed herewith presentation on the financial results to be made to analysts/investors for the quarter ended 30 June 2024. We request you to kindly take this on record. Thanking you, Yours faithfully, For BAJAJ FINSERV LIMITED Digitally signed by UMA OMKAR SHENDE UMA OMKAR DN: c=IN, o=PERSONAL, pseudonym=a35cda78f59a4fc4bad7faabb0fad2d0, 2.5.4.20=458a62914e5d254c613e7523827e486fc3544 fcb5eef7fe32084be347a6afdda, postalCode=411009, SHENDE st=MAHARASHTRA, serialNumber=36d920508d8616fe762816fb91ba0bfe 079a571ac0ce73c7622aa00e240caa3c, cn=UMA OMKAR SHENDE Date: 2024.07.25 00:06:15 +05'30' UMA SHENDE COMPANY SECRETARY Email ID: [email protected] Encl.: As above https://www.aboutbajajfinserv.com/about-us Corporate Office: 6th Floor, Bajaj Finserv Corporate Office, Off Pune - Ahmednagar Road, Viman Nagar, Pune - 411 014, Maharashtra, India Tel: +91 20 7150 5700 | Fax: +91 20 7150 5792 Registered Office: C/o Bajaj Auto Limited Complex, Mumbai - Pune Road, Akurdi, Pune - 411 035, Maharashtra, India Corporate ID No.: L65923PN2007PLC130075 | Email ID: [email protected]  BAJAJ FINSERV LIMITED Investor Presentation – Q1 FY 2025* *Year ending 31 March 2025 Note: From Q1 FY 2023 Bajaj Finserv Limited has started reporting its numbers in Investor Presentation in Rs. Crores. Till FY 2022, the same was in Rs. Million. 1  01. EXECUTIVE SUMMARY 02. BAJAJ FINSERV LIMITED 03. BAJAJ ALLIANZ GENERAL INSURANCE (BAGIC) 04. BAJAJ ALLIANZ LIFE INSURANCE (BALIC) INDEX 05. EMERGING BUSINESS a. BAJAJ FINSERV HEALTH LIMITED b. BAJAJ FINSERV DIRECT LIMITED c. BAJAJ FINANCIAL SECURITIES LIMITED 06. BAJAJ FINANCE LIMITED 07. BAJAJ HOUSING FINANCE LIMITED 08. ENVIRONMENTAL, SOCIAL AND GOVERNANCE – ESG 09. ANNEXURES 2 EXECUTIVE SUMMARY Update for the quarter 3 Bajaj Finserv – Performance summary Q1 FY 2025 All Figures in Rs. Crore For the Quarter FY 2024 Previous Financial Particulars Q1 FY 2025 Q1 FY 2024 Growth year Total Revenue 31,480 23,280 35% 110,383 (Consolidated) Profit after tax 2,138 1,943 10% 8,148 (Consolidated) Net worth 7,290 5,824 25% 6,569 (Standalone) Net worth (Consolidated) 63,324 48,963 29% 60,329 Surplus Funds 2,611 2,094 25% 2,198 Book Value Per share 397 307 29% 377 (Consolidated) PAT includes unrealized mark-to-market (MTM) gain on equity investments measured at fair value through profit and loss of BALIC and BAGIC of ₹ 16 Cr in Q1 FY25 as compared to MTM loss of ₹ 30 Cr in Q1 FY24. Ex-MTM impact, PAT growth for the quarter was 8%. 4 Executive Summary – Performance of businesses [1/2] All Figures in Rs. Crore General Insurance Life Insurance NBFC+ (Consolidated) Housing Gross Written Premium IRNB AUM Growth ₹ 4,761 ₹ 1,294 354,192 97,071 24% Y-O-Y 26% Y-o-Y 31% Y-o-Y 31% Y-o-Y Assets under Management NBV Net Total Income ₹ 31,651 104 ₹ 10,418 ₹ 810 11% Y-O-Y 11% Y-o-Y 24% Y-o-Y 16% Y-o-Y Profit after Tax NBM Profit after Tax ₹ 576 6.9% ₹ 3,912 ₹ 483 39% Y-o-Y (0.5%) Y-o-Y (abs) 14% Y-o-Y 5% Y-o-Y Combined Ratio Gross Written Premium Credit Quality - GPA and NPA 103.7% ₹ 5,018 0.86% I 0.38% 0.28% I 0.11% 3% Y-O-Y (Abs) 24% Y-o-Y (0.01%) Y-o-Y(abs) | (0.05%) Y-o-Y(abs) | 0.07% Y-o-Y (abs) (0.03%) Y-o-Y (abs) Return on Equity# Assets under Management Return on Equity/Return on Assets# 21.3%* ₹ 1,16,966 19.86% | 4.63% 14.32% | 2.35% 4% Y-O-Y (Abs) 23% Y-o-Y (4.61%) Y-o-Y(abs) | (2.89%) Y-o-Y(abs) | (0.79%) Y-o-Y (abs) (0.53%) Y-o-Y (abs) YOY - Performance as compared to the same quarter previous year. IRNB – Individual rated new business, NBV – Net New business value, NBM – Net New business margin, AUM – Assets under management, GPA – Gross non-performing assets, NPA – Net non-performing assets. 5 * ROE Excluding Fair value changes. + NBFC= Non-banking finance company # Annualized Executive Summary – Performance of businesses [2/2] All Figures in Rs. Crore Bajaj Financial Securities Limited Bajaj Finserv Direct Bajaj Finserv Health Asset Management Revenue from Operations Revenue from Operations Revenue from Operations Revenue from Operations ₹ 102 ₹ 135 ₹ 207 ₹ 7.14 117% Y-o-Y 16% Y-o-Y 57% Y-o-Y 515% Y-o-Y Profit after Tax Profit after Tax Profit after Tax Profit after Tax ₹ 30 (₹ 22) (₹ 49) (₹ 51) 500% Y-o-Y AUM Net Worth Net Worth Net Worth 4,390 506 461 78 265 Y-o-Y (15%) Y-o-Y 335% Y-o-Y (15%) Y-o-Y Return on Equity( Annualized) Cumulative Capital* Cumulative Capital* Cumulative Capital* 11.23% 525 1,056 350 8.6% Y-o-Y (abs) YOY - Performance as compared to the same quarter previous year * Invested by BFS 6  Highlights for the quarter BAGIC Market beating growth of 24% in GWP (industry growth of 12%; Private of 16%) Combined ratio (CoR) was 103.7%, adversely impacted by higher one-off claims and higher ceding of reinsurance. CoR on Net Earned Premium was below 100% with an underwriting profit of Rs. 16 cr (PY loss of Rs. 42 cr) PAT increased by 39% on the back of better underwriting result and higher profit on sale of investments Solvency Margin for the Company stood at 311% as against the regulatory norm of 150% BALIC BALIC continues to record market beating growth of 26% in IRNB well above private industry growth of 24% and overall industry growth of 20% Market share in IRNB terms increased from 8.9% to 9.0% in Q1 FY25 among private players In Q1 FY25 BALIC ranked 5th among private players on IRNB basis and 4th on Retail Regular new business policies Net New Business Value increased by 11% mainly due to high business growth and changes in channel/distribution mix PAT for the quarter de-grew by 37% mainly on account of higher new business strain due to business growth and product mix Bajaj Finserv Health Successfully completed acquisition of Vidal Healthcare, all necessary approvals received Post acquisition integration work has commenced Total Revenue for Q1 FY25 grew by 57 % YOY *GDPI – Gross direct premium Income, COR – Combined Ratio, NEP – Net Earned Premium, NWP – Net Written Premium, PAT Profit after tax 7 Industry – Private + PSU’s excluding SAHI Co’s., IRNB – Individual rated new business. Highlights for the quarter Bajaj Finserv Direct Limited  Total Revenue for Q1 FY25 grew by 16 % YOY  The Company resumed sourcing of ‘Insta EMI Cards’ on 8th May 2024, post removal of restriction by RBI on BFL Bajaj Finserv AMC  Total Revenue for Q1 FY25 grew by 515 % YOY  As on 30th Jun 2024 the total AUM was up by 26% Q-o-Q to ₹12,053  The AMC’s rank in terms of AUM was 27 out of 43 as on 30th Jun 2024 Bajaj Finance Limited The Company resumed sanction and disbursal of loans under ‘eCOM’ and ‘Insta EMI Card’ and issuance of EMI cards after the RBI removed the restrictions on these businesses on 2 May 2024 Profit after tax for Q1 FY25 increased by 14%. Capital adequacy remained strong at 21.65% as of 30 June 2024. Tier-1 capital was 20.73%. GNPA & NNPA is amongst the lowest in the industry. Bajaj Housing Finance Limited BHFL has filed Draft Red Herring Prospectus (“DRHP”) on 8 June 2024, with the SEBI and stock exchanges for potential IPO of equity shares and awaits clearance Profit after tax reported an increase of 5% due to deferred tax adjustment in Q1 FY24 BHFL’s Capital adequacy ratio stood at 23.82% as of 30 June 2024. Tier-1 capital was 23.26% Bajaj Financial Securities Limited Net total income grew by 117% in Q1 FY25 Profit after tax grew by 500% 8 BAJAJ FINSERV LTD. 9 Bajaj Group Structure Bajaj Holdings & Investment Limited (Listed) 36.68%2 41.53%1 51%3 Bajaj Auto Limited (Listed) Bajaj Finserv Limited (Listed) Maharashtra Scooters Limited (Listed) Auto Business Arm Financial Services Arm Auto Tooling's Manufacturer 51.34%4 74% 74% 80.13% 100% 100% Bajaj Finserv Health Bajaj Finance Limited Bajaj Allianz General Bajaj Allianz Life Bajaj Finserv Direct Limited (Including Bajaj Finserv Asset (Listed)* Insurance Limited Insurance Limited Limited Vidal Health Insurance Management Company TPA Pvt. Limited) 100% 100% 1. 60.64% holding via promoter holding & promoter group 2. 55.06% holding via promoter holding & promoter group Bajaj Housing Finance Bajaj Financial 3. 51% holding through promoter holding company Limited Securities Limited 4. 54.70% holding via promoter holding & promoter group 5. Bajaj Finserv Mutual Fund Trustee Ltd is a wholly owned subsidiary of Bajaj Finserv Limited, acts as Trustee to the Asset Management Company. Apart from these, Bajaj Finserv (BFS) has one more fully-owned subsidiaries BFS Ventures (BFSV) Bajaj Housing Finance Limited (BHFL) is a 100% subsidiary of BFL which became fully operational in Feb 2018. Bajaj Financial Securities Limited (BFSL) is 100% subsidiary of BFL which became fully operational in Aug 2019 Maharashtra Scooters Limited (MSL) is termed as an unregistered Core Investment Company. Note: Shareholding is as of 31 Dec 2023. 10 Bajaj Finserv’s Vision – A diversified financial services group with a pan-India presence Life cycle Family, Health & Investment/ needs of Asset acquisition Asset protection Income Wealth Retirement Individual & SME Protection management customers Loan (Personal, General Insurance, General, Health & Life ULIPs*, Fixed Deposits, Annuities Home), Credit Cards Health care Platform Insurance – Guaranteed Mutual Funds, Shares Savings, Digital access to health ecosystem Bajaj Allianz Life Insurance Limited (BALIC) (Life Insurance, Retirement & Pension) Bajaj Finserv Direct Limited (BFDL) Bajaj Finserv Limited (Listed) Bajaj Allianz General Insurance Limited (Digital Marketplace & Technology Services) PRODUCTS & SOLUTIONS (BAGIC) Financial Services (General and Health Insurance) PLATFORMS Bajaj Finance Limited (BFL) Bajaj Finserv Health (Consumer & Finance Business) Limited (BFHL) (Health-tech Platform) Bajaj Housing Finance Limited (BHFL) (Mortgage and Developer Financing) Bajaj Financial Securities Bajaj Finserv Asset Management (Bajaj Limited (BFSL) AMC) (Digital Stockbroker) (Mutual Funds) 11 Role of Bajaj Finserv Collaboration and Customer Experience, Business Risk One Finserv Talent Best Practice Investments, ESG  Rigorous engagement  Harmonization of risk  Group Knowledge  One Finserv – Group  Defining Customer in Long Range Planning policies and Forums – Analytics, Talent mobility Service protocols for and Annual Operating framework, Regular Technology,  Group Young Leader businesses Plans engagement with CROs Investments, Management Trainee  Review and  Regular review of all of business Governance, etc. Program standardisation of businesses and their  Periodic review of top  Cross group stress  30 Under 30 Program investment processes SBUs ERM risks including identification forum to  Oversight and credit, business,  3 Tier Merit based  New business identify any cross monitoring of ESG financial, operational, remuneration plans opportunities and functional view on policy and its reputation, etc. & combining fixed cash, Strategic investments investment risks implementation across mitigation actions annual bonus and  Cross Company ESOPs the group planned projects on Data,  Drive risk related innovation and digital projects across the strategy. group such as ORM  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 accountable empowerment and encouragement of disruptive thinking 12 Our Culture: Purpose enabled through Leadership DNA Purpose: “A place where innovation, agility and ownership thrives, creating responsible leaders who build long term profitable businesses, to delight our customers” Mindsets: Customer Talent Builder Growth Being Obsession Mindset Responsible Behaviours: Innovate to Develop & Dream to Do The Right Simplify Delegate Deliver Thing 13 Our Reach BAJAJ HOUSING BAJAJ FINANCE FINANCE LIMITED 4,202 Branches 174 Branches (Urban: 1,585 | Rural: 2,617) 207,000+ POS (Active point of sale) BAJAJ ALLIANZ LIFE INSURANCE BAJAJ ALLIANZ GENERAL INSURANCE 545 Branches 217 Branches 150,000+ Individual Agents 170+ Corp. Agents 100+ Corp. Agents and and Banks Brokers 78,700+ POS 3,500+ PSF 61,700+ Individual Agents 14 BAJAJ FINSERV LTD. 15 Bajaj Finserv Consolidated profit recon All Figures in Rs. Crore Particulars Q1 FY 2025 Remarks A. Consolidated Profit After Tax Q1 FY24 1,943 Less: Bajaj Housing Deferred Tax Liability 38 In Q1 FY24, Bajaj Housing Finance (BHFL) had one-time Reversal Impact deferred tax liability reversal of ₹ 73 crore; impacting consolidated profit by ₹ 38 crore B. Adjusted Profit After Tax Q1 FY24 1,905 C. Consolidated Profit After Tax Q1 FY25 2,138 Add: Change in Shareholding of Bajaj Finance 45 Impact of reduction in shareholding of BFS Post QIP by BFL Ltd. from 52.49% to 51.34%* Losses from Emerging business 37 Increase in losses of Bajaj AMC, Bajaj Finserv Health and Bajaj Finserv Direct to ₹ 119 crore as against ₹ 82 crore in Q1FY24 as the business is trying to achieve the scale D. Adjusted Profit After Tax Q1 FY25 2,220 Impact of above items on PAT (7%) Reported Growth 10% *Post exercise of warrants by BFS in Q4 2025, shareholding of BFS in BFL shall increase by 0.12% 16 Consolidated Revenue components – Q1 FY 2025 (BFS Share) Consolidated Revenue# components for Q1 FY25 (Ind AS) All Figures in Rs. Crore Intercompany Revenue Mix Bajaj Finserv- adjustments (Q1 FY25) Standalone (1,249) 31,480 -4% Life Others1 918 3% Bajaj Finserv Insurance 2% General 518 6,919 Consolidated Insurance (+ 22%) (+ 35%) Bajaj Finance 8,272 22% 16,102 (+ 64%) 1Includes Bajaj Markets* ₹ 135 Cr, Bajaj Finserv health (+ 29%) ₹ 208 Cr BFS AMC ₹ 7 Cr and BFS Ventures ₹ 168 Cr Consolidated Revenue # components for Q1 FY24 (Ind AS) Intercompany adjustments Bajaj Finserv- Standalone (806) 23,280 51% Bajaj Finserv 26% Life Others2 603 General Insurance 275 Consolidated Insurance 5,677 (+ 46%) Bajaj Finance (+ 154%) 5,030 BFS Standalone BFL Consol (+ 13%) 2Includes Bajaj Markets* (₹ 10 Cr), Bajaj Finserv health (₹ BAGIC BALIC 12,501 (+ 35%) 56 Cr) and BFS AMC (₹ 7 Cr) and BFS Ventures (₹ 1 Cr) Others Inter-company eliminations 17 Consolidated profit components – Q1 FY 2025 (BFS Share) Consolidated profit# components for Q1 FY25 (Ind AS) All Figures in Rs. Crore Adjustments (Net of Tax)# Intercompany Unrealized MTM* Loss on BAGIC Investments – ₹ 65 Cr Bajaj Finserv- adjustments Unrealized MTM* Gain on BALIC Investments – ₹ 81 Cr Standalone (869)$ 2,138 Life Others1 633 Bajaj Finserv General Insurance (119) Insurance Consolidated Bajaj Finance 129 (- 10%) (+ 10%) 355 (+ 47%) 1Includes Bajaj Markets* (₹ 20 Cr), eBH (₹ 49 Cr) BFS 2009 (+ 11%) AMC (₹ 51Cr) and BFS Ventures ₹ 1 Cr Consolidated profit # components for Q1 FY24 (Ind AS) Adjustments (Net of Tax)# Intercompany Unrealized MTM* Loss on BAGIC Investments – ₹ 67 Cr Bajaj Finserv- adjustments Unrealized MTM* Gain on BALIC Investments – ₹ 37 Cr Standalone (568)$ Others2 1,943 Life 404 Bajaj Finserv Insurance (82) General Insurance 143 Consolidated Bajaj Finance (+ 48%) 242 (+ 53%) 2 Includes Bajaj Markets* (₹ 13 Cr), eBH (₹ 39 Cr) and 1,804 (+ 32%) BFS AMC (₹ 30 Cr) # - Denotes impact considering BFS stake in respective companies | MTM – Mark to Market * Denotes Bajaj Finserv Direct Limited $ Includes elimination of Intercompany dividends received 18 Growth Trajectory Of the Group All Figures in Rs. Crore Growth for 5 YR 10 YR Particulars FY 14 FY 19 FY 23 FY 24 the year CAGR CAGR Bajaj Finserv Limited (Consolidated) Net total Income 15,555 42,606 82,072 110,383 34% 21% 22% Profit after tax 1.544 3,219 6,417 8,148 27% 20% 18% Net Worth 9,311 23,766 46,407 60,329 30% 14% 17% Bajaj Allianz General Insurance Company Limited Gross Written Premium 4,584 11,097 15,487 20,630 33% 13% 16% Profit after tax 409 780 1,348 1,550 15% 15% 14% Combined Ratio 98.1% 96.7% 100.5% 99.9% 0.6% abs - - Assets under Management 6,967 17,237 27,809 31,196 12% 13% 16% Bajaj Allianz Life Insurance Company Limited Individual Rated New Business 1,002 1,742 5,214 6,326 21% 29% 20% Gross Written Premium 5,843 8,857 19,462 23,043 18% 21% 15% New Business Value (27) 154 950 1,061 12% 47% NA Assets under Management 38,780 56,634 90,584 1,09,829 21% 14% 11% Bajaj Finance Limited (Consolidated) Net total Income 2,500 11,877 28,858 36,258 26% 25% 31% Profit after tax 719 3,995 11,508 14,451 26% 29% 35% Assets under Management 24,061 1,15,888 2,47,379 3,30,615 34% 23% 30% Bajaj Housing Finance Limited Net total Income NA 471 2,454 2,925 19% 44% - Profit after tax NA 110 1,258 1,731 38% 74% - Assets under Management NA 17,562 69,228 91,370 32% 39% - 19 BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LTD. 20 BAGIC – Key Strategic Differentiators STRATEGY Strive for market share growth in chosen business segments through a well-diversified product portfolio and multi- channel distribution supported by prudent underwriting. Emphasis on profitable growth. DIFFERENTIATORS  Industry leading combined ratios consistently over the years Strong selection of Risk & prudent underwriting  Business construct is to deliver superior ROE  Strive to be the best claims paying general and health insurer  Diversified product portfolio offering across retail and corporate Balanced Product Mix segments  Continuous innovations in product features to maintain competitive edge  Multi channel distribution network encompassing multiline agents, Deep and wide distribution bancassurance, motor dealers’, broking, direct, & ecommerce network serving all segments  Focus on penetrating Small Towns (Geo Model)  Focused on retail segments (mass, mass affluent & HNI) & commercial segments Retail & Commercial orientation (SME & MSMEs) while maintaining strong position in large corporates & government business  Deep investments in technology to drive efficiencies for the Company and Investments in technology with focus on all convenience for all stakeholders – customers, distributors and employees. stakeholders – “Caringly yours”  Drive the theme of “Caringly yours” on the foundation of customer obsession through innovations in customer experience 21 BAGIC – Key Financial Highlights – Q1 FY 2025 All Figures in Rs. Crore For the Quarter FY 2024 Particulars Q1 FY 2025 Q1 FY 2024 Growth Previous Financial Year Gross Written Premium 4,761 3,834 24% 20,630 GWP excluding Crop & Govt. health 4,664 3,834 22% 15,068 Combined Ratio (CoR)# 103.7% 100.7% (3%) abs 99.9% Underwriting Result 16 (42) - (166) Profit after Tax 576 415 39% 1,550 Return on Average Equity* 21.3% 17.2% 4.1% abs 15.2% (Annualized) Solvency Ratio(Regulatory 311% 388% - 349% requirement of 150%) *1. Return on Equity (ROE) is excluding fair value change 22 # On IRDAI basis BAGIC – Growth compared to industry All Figures in Rs. Crore 4,50,000 25.0% GDPI Trend GDPI excluding Crop & Govt. health Trend 4,00,000 3,50,000 20.00% 20.0% 3,50,000 18.00% 3,00,000 2,78,549 2,47,147 16.00% 3,00,000 2,41,071 15.0% 2,50,000 2,15,189 14.00% 2,50,000 12.00% 2,00,000 2,00,000 1,88,206 1,66,501 10.00% 1,58,184 10.0% 1,40,879 1,50,000 1,50,000 7.3% 6.30% 6.70% 8.00% 6.4% 6.0% 6.5% 5.80% 6.00% 1,00,000 6.00% 1,00,000 72,268 69,100 63,541 5.0% 60,192 4.00% 82,887 90,342 50,000 74,310 80,647 46,374 50,000 40,870 48,135 39,298 2.00% 22,670 24,133 20,894 22,727 20,473 0 12,387 14,908 3,787 4,617 0.00% - 15,337 0.0% 3,789 4,716 FY23 FY24 Q1 FY24 Q1 FY25 FY23 FY24 Q1FY24 Q1FY25 BAGIC PSU Private* Market Share BAGIC PSU Private* Market Share  Ex. Crop & Govt. Health, Q1 FY25 GDPI grew by 21.9% v/s Private sector growth of 18.0% and Industry** growth of 14.8% contributed mainly by Strong growth in Commercial lines at 19%, Health at 40%, Personal Accident at 25% and Miscellaneous at 73%. Muted growth in motor segment due to focus on preferred mix and lower new vehicle registrations in Q1 Source : IRDAI/GIC, GDPI : Gross Direct Premium Income | *Private Insurers : Includes Standalone Health Insurers, and excludes AIC & ECGC ** Includes Standalone Health Insurers, Private Insurers, PSU and excludes AIC & ECGC 23 Profit (PBT) Waterfall – Q1 FY 2025 vs Q1 FY 2024 All Figures in Rs. Crore (2) UW Gain Rs. 16 cr UW loss Rs. 42 cr Interest, Other Income and Capital Interest, Gains Other Income Rs. 754cr and Capital Gains Rs. 597 cr PBT Higher Increase in Decrease in Increase in Others & PBT Q1 FY24 realized interest and net expense Claim ratio Volume Q1 FY25 gains other ratio Impact Income UW = Underwriting; PBT = Profit Before Tax, Net Expense Ratio = Net Commission + Operating Expenses 24 BAGIC – Capital, ROE & Investment Performance All Figures in Rs. Crore AUM Mix BAGIC - Capital Invested - Networth ROE (Annualized) 2% No Capital infusion Accumulated profit* 98% of Net Q1 FY25 21.3% since FY08 Worth as at 30 June 2024 14% 11,521 Q1 FY25 11,244 Q1 FY24 17.2% 277 9,974 Q1 FY24 9,697 277 FY24 15.2% 11,474 FY24 11,197 277 9,806 FY23 15.0% FY23 9,530 55% 277 28% Net Worth Reserves Capital Invested Annualized RoE excluding surplus capital consistently upwards of 20% at 200% solvency AUM (cash and investments) Realised Investment Return (Annualized) 2.84 2.72 2.87 2.75 Q1 FY25 9.86% 12% 31,196 11% 31,651 Gsec 27,809 28,611 Bonds Q1 FY24 8.71% Equity FY24 Money Market and FD 7.72% FY23 7.66% 98% of debt portfolio is in AAA or sovereign securities. 95.7% of Equity investment is in BSE FY23 FY24 Q1 FY24 Q1 FY25 100 stocks. FY23 FY24 Q1 FY24 Q1 FY25 Investment Leverage 25 Investment Leverage: AUM/Net worth BAGIC – Balanced Product Mix BUSINESS MIX 8% 9% 11% 12% 1% 0% 14% 0% 18% 2% 32% 14% 31% 19% 17% 12% 16% 19% 14% 6% 5% 5% 5% 35% 35% 29% 31% FY23 FY24 Q1 FY24 Q1 FY25 Motor Retail Health Group Health Property, Liability and Engineering Agri (Crop Insurance) Government Health Others 26 BAGIC – Diversified Distribution Mix Channel Mix 25% 23% 17% 36% 48% 45% 54% 35% 2% 3% 2% 3% 10% 10% 10% 11% 15% 16% 18% 14% FY23 FY24 Q1 FY24 Q1 FY25 Individual Agents Corporate Agents - Banks Corporate Agents - Others Brokers Direct Business Bancassurance Agency & Retail OEMs* & Dealer Rural Focus Digital ecosystem  Over 170+ corporate agents  61,700+ agents & 78,700+  45+ national Tie-ups and  45+ Lakh farmer applications  23+ Partnerships across and banca partners. POSP over 9,300 network of dealers insured in Q1FY25 Insuretech companies,  New Tie-ups in Q1 FY25:  Realignment of retail across pan India  Issued 1.6 lakh NOPs under aggregators, wallets such as HSBC, Namdev Finvest Pvt channels to drive profitable  National Tie-ups: Maruti, crop insurance in Q1 FY25 Phone Pe, payments banks, Ltd, Chhatrapati Rajashri growth segmented as Honda, Toyota, Mahindra,  Received crop insurance etc Shahu Urban Co Bank Ltd Enterprise Partners, Growth Hyundai, MG, Kia, VW, BMW, enrollments from 1,481 CSC etc. and renewed all CA Markets, Motor Agency & TATA Motors, Bajaj, RE, centers in Q1 FY25 agreements due for renewal Retail & SME Yamaha, Piaggio, JCB, Suzuki  15600+ active CSC centers in in Q1FY25 TW, Hero, Bgauss, Revoult, Q1 FY25  GEO – Increase penetration with underpenetrated Tier II & Lexus, Nissan, Renault, Hero Tier III cities Electric, Ampere etc Note: The components might not add up to total of 100% due to rounding off | * Original Equipment Manufacturer 27 BAGIC – Product Portfolio Motor All Figures in Rs. Crore Type FY23 FY24 Q1 FY 2024 Q1 FY 2025 Motor OD 44% 46% 47% 54% Motor TP 56% 54% 53% 46% Grand Total 100% 100% 100% 100% Product Mix – Motor 74.5% 71.8% 76.0% 72.3% 5,848 5,349 3,149 2,997 1,343 1,441 2,351 2,699 708 668 635 772 FY23 FY24 Q1 FY24 Q1 FY25 Motor OD Motor TP Loss Ratio 28 BAGIC – Product Portfolio Health and PA All Figures in Rs. Crore Type FY23 FY24 Q1 FY 2024 Q1 FY 2025 Retail 26% 14% 22% 17% Group (Employer-Employee & Others) 56% 40% 65% 66% Govt. Schemes 6% 40% 0% 6% Travel Insurance 5% 3% 6% 5% P.A 7% 3% 7% 6% Grand Total 100% 100% 100% 100% Product Mix – Health and P.A 74.3% 85.0% 81.1% 82.3% 6,943 189 230 2,770 164 940 1,379 3,373 80 231 64 69 194 59 2,764 88 1,895 2 612 913 889 990 203 229 FY23 FY24 Q1 FY24 Q1 FY25 Retail Group Employer-Employee/Others Govt. Schemes Travel Insurance P.A. Loss Ratio 29 BAGIC – Commercial Lines and Others All Figures in Rs. Crore Type FY23 FY24 Q1 FY 2024 Q1 FY 2025 Fire 33% 31% 56% 55% Marine 4% 4% 7% 6% Engineering 5% 5% 9% 7% Liability 8% 8% 16% 15% Commercial Lines 49% 48% 87% 82% Crop Insurance 42% 36% 0% 1% Others 9% 15% 13% 17% Grand Total 100% 100% 100% 100% Product Mix – Commercial Line and others 65.6% 58.4% 49.8% 79.0%* 7,682 6,615 1,179 613 2,795 1,897 2,755 1,506 615 195 327 507 408 11 285 299 300 0 234 287 129 129 2,385 104 2,154 105 1,040 844 FY23 FY24 Q1 FY24 Q1 FY25 Fire Marine Engineering Liability Crop insurance Others Loss Ratio # includes Rural, extended warranty, aviation and all other miscellaneous segments. 30 * Higher loss ratio due to few large liability claims.  Key Technology & Customer Initiatives of Q1 FY 2025 – [1/2] Digital Journey Metrics Digital Servicing Q1 FY 2025 Digital Issuance Q1 FY 2025 From 75.3% in FY 2024 -> From 96.3% in FY 2024 -> 72.4% 96.4% Digital Payment Q1 FY 2025 Net Promoter Score* Motor Health FY2023 FY2024 FY2023 FY2024 From 95.6% in FY 2024 -> 95.1% 72 ↑ 75 69 ↑ 70 Key Initiatives Summary Data Platform Disaster Recovery GPT Workbench Modernization Modernization Launched 1st Phase of our cloud-based data Went live with Next-Gen DR in line with primary platform, featuring advanced analytics & Gen A playground for employees to explore & Data Center that supports peak business AI capabilities with an architecture that implement use cases using Large language volumes & provides scalability, speed, and observability models seamless switchover Digital Experience Digital Care with AI Care Advisor Report Card Analytics Implemented a digital analytics solution on our AI enabled BOT contribution ~45% and A performance tracking and analysis tool for website to provide insights into user's Claim Intimation & registration through Voice intermediaries, featuring comparative insights interactions optimize digital experiences, and Bot Leading to increase in Productivity by 33% with the previous fiscal year drive business growth. 31 AI – Artificial Intelligence, DR – Disaster Recovery, * NPS conducted by an independent agency across the customer journey for FY2024  Key Technology & Customer Initiatives of Q1 FY 2025 –[2/2] Existing Digital Capabilities Enhanced & Scaled-up Website Caringly Yours App* Our website is now available in 7 different languages for Our Customer facing app remains as the most used app in our customers Insurance Industry 7.1 Mn Visitors | 1.53 L Policies Issued 4.7~ Mn Total Downloads | 9.24 L Active Users BAGICARE – CRM B Care Portal & App Prive customer Identification & service, Prive Lead Our flagship portal & App for agents has more than 90 Management, CY App Integration for FNOL, Motor OD Claim products available for policy issuance and services Registration through CRM 1.62 Mn Policies Issued with over | 694 Cr. of Business Booking 9.36 L Service Requests | 3.3 Mn Leads Generated Banca Portal Farmitra App* Our Banca Portal created for bank RMs and customers has over The usage of the app launched for Farmer Community has 37 products available for issuance. seen a significant uptake 8.1 L Policies Issued with over | 110 Cr. of Business Booking 9.35 L+ Downloads WhatsApp + BOING 2.0 Voice Bot Various new features & enhancements were done in BOING and AI enabled multilingual voice bot developed for Health, Motor, other BOTS Non-motor & Agri Claim intimation 4.58 L+ Unique Users 67.7 K+ Claims Intimated 32 FNOL - First Notice of Loss, * Numbers are as on Q1 FY25. All others are for the period. BAGIC – Risk Management  98% of the debt portfolio in AAA and sovereign assets and 88.4% of Equity in Nifty 50 stocks & 95.7% in BSE100 stocks Asset Quality  Oversight by Board & Executive Investment Committee and Group level investment forum  Robust ALM position  Superior underwriting capability leading to consistently low Combined Ratio consistently  Diversified exposure across business lines & geographies Pricing & Underwriting  Granular loss ratio modelling – geography, distribution, car make/model, vintage, etc.  Robust investigation, loss management & analytics intervention  Reinsurance ceded only to A- and above & AA rated reinsurers, except mandatory ceding to GIC  Large reinsurance capacity & optimum retention Re-Insurance  Robust process of monitoring concentration of risk  Catastrophic events adequately covered  Ultimate Loss triangles show prudent reserving at point of accident year with low paid to Reserving & Solvency ultimate for long-tail claim(Motor TP).  Amongst the highest solvency in the market 33 BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD. 34 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 returns and continued focus on increasing Net New Business Value (NBV) DIFFERENTIATORS  Embarked on a customer obsession journey to deliver seamless, simplified & personalized experience Efficient Operations  Auto pay improvement across all cohorts and channels  Focusing on faster issuances, claim settlement and driving FTR  Pan India distribution reach with presence over 545 branches Diversified Distribution  Balanced channel mix – Agency, Institutional Business including Banca, and BALIC Direct  Strong presence in group credit protection and online offerings  One of the largest Agency in terms of IRNB amongst private players Strong proprietary channels  Robust BALIC Direct channel to invest in up-selling and cross-selling  Use of innovation & data analytics as a strategic differentiator for customers & sales partners  Diverse suite of products across various need segments, with an aspiration to provide Innovative products and customers “Best in Class” features Sustainable product mix  Innovative products & features like the ACE (PAR), Magnum Fortune Plus & Future Wealth Gain (ULIP), Assured Wealth Goal & Goal Suraksha (Non-Par), Guaranteed Pension Goal (Annuity), SISO (SIP), Smart Protect Goal & e-Touch (Term) have witnessed strong response from the customers Systematic in Systematic Out; FTR : First Time Right 35 BALIC – Key Highlights - Q1 FY 2025 All Figures in Rs. Crore For the quarter FY 2024 Particulars Q1 FY 2025 Q1 FY 2024 Growth Previous financial year Individual Rated NB 1,294 1,028 26% 6,326 Retail Protection NB 72 56 30% 241 Group Protection NB 750 650 15% 2,315 Renewal Premium 2,477 1,899 30% 11,549 Gross Written Premium 5,018 4,058 24% 23,043 Profit After Tax (PAT) 97 155 (37%) 563 AUM 1,16,966 95,317 23% 1,09,829 Net New Business Value (NBV) 104 94 11% 1,061 Solvency Ratio (Regulatory requirement of 399% 475% - 432% 150%) Source : IRDAI Monthly Business Figures IRNB – Individual Rated New Business, NB – New Business, ULIP – Unit Linked Insurance Plan 36 BALIC – Growth in Individual Rated New Business All Figures in Rs. Crore IRNB Trend IRNB Trend BALIC Growth 21% 26% Pvt Market Growth 8% 24% Overall Industry 5% Growth 20% BALIC Market 5.8% 5.7% 6.0% Share* 5.0% 1,20,000 10,000 25,000 10,000 1,08,975 1,03,956 9,000 21,451 9,000 1,00,000 8,000 20,000 8,000 17,922 7,000 7,000 80,000 73,870 68,378 6,000 15,000 14,357 6,000 6,326 60,000 5,000 11,594 5,000 5,214 4,000 10,000 4,000 40,000 3,000 3,000 2,000 5,000 2,000 20,000 1,000 1,000 1,028 1,294 - - - - FY23 FY24 Q1 FY24 Q1 FY25 Industry Private Life Insurers BALIC Industry Private Life Insurers BALIC Source : IRDAI, IRNB : Individual Rated New business 37 * Based on IRNB for the entire industry BALIC –Individual Rated New Business by channel All Figures in Rs. Crore Whole Company Agency +21% +26% +20% +15% 6,326 2,547 5,214 2,122 1,294 473 545 1,028 FY23 FY24 Q1 FY24 Q1 FY25 FY23 FY24 Q1 FY24 Q1 FY25 Institutional Business BALIC Direct +17% 3,042 +27% +49% 737 +75% 2,598 494 581 168 458 96 FY23 FY24 Q1 FY24 Q1 FY25 FY23 FY24 Q1 FY24 Q1 FY25 Y-o-Y Growth Q-o-Q Growth 38 BALIC - Product mix Product Mix* 31% 39% 42% 47% 3% 4% 5% 6% 42% 24% 33% 19% 6% 5% 7% 6% 27% 23% 17% 13% FY23 FY24 Q1 FY24 Q1 FY25 Individual - Par Individual - Annuity Individual - Non Par Savings Individual - Non Par Protection Individual - Unit Linked *Based on IRNB – Individual Rated New Business - (100% of first year premium & 10% of single premium excluding group products). Note: The components might not add up to total of 100% due to rounding off 39  BALIC – Diversified Distribution Mix Institutional Business - Building sustainable business through strong integration with partners Commercial and Other Banks Others Agency BALIC Direct Focus on profitability and driving higher traditional Mix Analytics backed, focused verticals for upsell and cross sell  One of the largest agency Channels in private Life insurance space initiatives  1.5 Lakh+ agents  Continued balanced product mix with traditional individual rated new business including term  Presence in 342 cities, with Dedicated Verticals for various is at 61% in 12M FY24 customer segments such as Service to Sales, New to BALIC  Variabilization of Agency cost through low-cost models (NTB) and Defence New partners added during Q1 FY25 40 BALIC – Protection All Figures in Rs. Crore Retail Protection (NBP) Group Protection (NBP) 241 2,287 2,371 2,315 168 +30% +15% 116 72 650 750 56 FY 22 FY 23 FY 24 Q1 FY24 Q1 FY25 FY 22 FY 23 FY 24 Q1 FY24 Q1 FY25 Retail Protection grew by 30% to Rs. 72 cr in Q1 FY25 vs Rs. 56 cr in Q1 FY24. For FY24 it stood at Rs 241 cr, growth of 43% compared to Rs 168 cr in FY23 On IRNB basis, retail protection stood at 4% in FY24 vs. 3% in FY 23 (6% in Q1 FY25 vs 5% in Q1 FY24) 5-year CAGR of Group protection business at 10%, while retail protection had a 5-year CAGR of 91% IRNB – Individual Rated New Business 41 BALIC – Number of policies In Force policies (Retail) Retail NOPs +9% 7,46,555 35,09,451 35,51,679 4 Yr CAGR – 24% 32,35,240 32,60,165 30,25,662 6,13,205 29,06,604 29,61,166 4,74,974 4,27,003 3,11,418 +8% 1,43,670 1,55,436 FY 20 FY 21 FY 22 FY 23 FY 24 Q1 FY24 Q1 FY25 FY 20 FY 21 FY 22 FY 23 FY 24 Q1 FY24 Q1 FY25 Retail in-force policies (excl. reduced paid up policies) 42 BALIC – Capital and assets under management All Figures in Rs. Crore Net worth AUM AUM (Mix) No Capital Accumulated profit* infusion since 89% of Net Worth as 13.5% FY08 on 30 June 2024 1,16,966 1,09,829 41.2% 11,139 10,803 10,785 10,558 95,317 90,584 69,422 40.3% 66,086 58,481 56,802 9,574 9,929 9,347 9,593 1.6% 3.4% 47,544 Corporate Bonds G-sec 43,744 33,782 36,837 Money Market FD & Others 1,211 1,211 1,211 1,211 Equity FY23 FY24 Q1 FY24 Q1 FY25 FY23 FY24 Q1 FY24 Q1 FY25 99% of debt portfolio is in AAA or Capital Invested Reserves & Surplus Networth Other than unit linked Unit Linked Total sovereign securities. 43 BALIC – Net New Business Value (NBV) Update All Figures in Rs. Crore Rolling 12M Rolling 12M Particulars Q1 FY 2025 Q1 FY 2024 Change(%) Change(%) FY 20251 FY 20242 Annualized Premium (ANP)* 1,502 1,273 18% 7,504 6,172 22% Net New Business Value (NBV)** 104 94 11% 1,071 909 18% Net New Business Margin (NBM) on ANP 6.9% 7.4% (0.5%) 14.3% 14.7% (0.4%)  Life insurance business is seasonal with large proportion of business written in Q4 and H2, accordingly rolling 12 months data is indicated for information only. This does not in any way imply a forecast or expectation for FY25.  NBV grew by 11% in Q1 FY25 over Q1 FY24 due to higher business achievement offset by impact of higher UL mix 1 – Rolling 12M FY25 represents the business written between July 2023 to June 2024 2 – Rolling 12M FY24 represents the business written between July 2022 to June 2023 *ANP refers to annualized new business written during the year and is