Bajaj Finserv Limited Investor Presentation - Q2 FY2025 PDF

24 October 2024 To To Corporate Relations Department. Corporate Listing Department. BSE Limited...

24 October 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 September 2024 Further to our letter dated 18 October 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 September 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=458a62914e5d254c613e7523827e486fc354 4fcb5eef7fe32084be347a6afdda, SHENDE postalCode=411009, st=MAHARASHTRA, serialNumber=36d920508d8616fe762816fb91ba0bf e079a571ac0ce73c7622aa00e240caa3c, cn=UMA OMKAR SHENDE Date: 2024.10.24 14:57:17 +05'30' UMA SHENDE COMPANY SECRETARY Email id: [email protected] Encl.: As above Page 1 of 1 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 – Q2 FY2025* *Q2 of 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 Q2 and H1 FY2025 All Figures in Rs. Crore For the Quarter For the Period FY 2024 Previous Particulars Q2 FY2025 Q2 FY2024 Growth H1 FY2025 H1 FY2024 Growth Financial year Total Revenue 33,703 26,023 30% 65,183 49,303 32% 110,383 (Consolidated) Profit after tax 2,087 1,929 8% 4,225 3,872 9% 8,148 (Consolidated) Net worth 8,303 6,472 28% 8,303 6,472 28% 6,569 (Standalone) Net worth (Consolidated) 68,325 50,873 34% 68,325 50,873 34% 60,329 Surplus Funds 3,546 2,778 28% 3,546 2,778 28% 2,198 Book Value Per share 428 319 34% 428 319 34% 377 (Consolidated) PAT includes unrealized mark-to-market (MTM) loss on equity investments measured at fair value through profit and loss of BALIC and BAGIC of ₹ 67 Crore in Q2 FY2025 and ₹ 51 Crore for H1 FY2025 as compared to MTM loss of ₹ 72 Crore in Q2 FY2024 and 102 Crore for H1 FY2024. Ex-MTM impact, PAT growth for the quarter and H1 FY2025 was 8%. 4 Executive Summary – Performance of businesses for Q2 FY2025 [1/2] All Figures in Rs. Crore General Insurance Life Insurance NBFC+ (Consolidated) Housing Finance Gross Written Premium IRNB AUM Growth ₹ 5,871 ₹ 1,895 3,73,924 1,02,569 (20%) Y-O-Y 34% Y-o-Y 29% Y-o-Y 26% Y-o-Y Assets under Management NBV Net Total Income ₹ 31,949 245 ₹ 10,946 ₹ 897 8% Y-O-Y 3% Y-o-Y 24% Y-o-Y 18% Y-o-Y Profit after Tax NBM Profit after Tax ₹ 494 10.8% ₹ 4,014 ₹ 546 6% Y-o-Y (3.8%) Y-o-Y (abs) 13% Y-o-Y 21% Y-o-Y Combined Ratio Gross Written Premium Credit Quality - GPA and NPA 101.4% ₹ 6,544 1.06% I 0.46% 0.29% I 0.12% 6% Y-O-Y (Abs) 23% Y-o-Y 0.15% Y-o-Y(abs) | (0.05%) Y-o-Y(abs) | 0.15% Y-o-Y (abs) (0.03%) Y-o-Y (abs) Return on Equity# Assets under Management Return on Equity/Return on Assets# 18.0%* ₹ 1,23,178 19.08% | 4.48% 13.03% | 2.49% 1% Y-O-Y (Abs) 25% Y-o-Y (5.02%) Y-o-Y(abs) | (3.09%) Y-o-Y(abs) | (0.68%) Y-o-Y (abs) (0.14%) 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 for Q2 FY2025 [2/2] All Figures in Rs. Crore Stock Broking Marketplace and Tech Healthtech and TPA Asset Management Services Services# Revenue from Operations Revenue from Operations Revenue from Operations Revenue from Operations ₹ 121 ₹ 164 ₹ 9.96 ₹ 233 78% Y-o-Y 30% Y-o-Y 282% Y-o-Y Profit after Tax Profit after Tax Profit after Tax Profit after Tax ₹ 37 (₹ 6) (₹ 32) (₹ 50) 185% Y-o-Y (₹18) Crore Q2 FY2024 (₹46) Crore Q2 FY2024 AUM Net Worth Net Worth Net Worth 5,430 500 455 102 164 Y-o-Y (12%) Y-o-Y 24% Y-o-Y Return on Equity( Annualized) Cumulative Capital* Cumulative Capital* Cumulative Capital* 12.03% 525 1,086 450 4.8% Y-o-Y (abs) YOY - Performance as compared to the same quarter previous year Invested by BFS # Previous year numbers are not comparable due to acquisition of Vidal healthcare in Q1 FY2025 6  Highlights for the quarter BAGIC Industry growth muted at 2% for the quarter Gross written premium for Q2 FY25 decreased by 20% to ₹ 5,871 crore v/s ₹ 7,298 crore in Q2 FY24 due to spill over of government health business to October. Negating the timing variance BAGIC growth would have been ~13%. Excluding volatile tender-driven crop and government health insurance premium, BAGIC’s gross written premium increased by 11% to ₹ 4,157 crore in Q2 FY25 from ₹ 3,747 crore in Q2 FY24 which is higher than the industry growth of 4% COR stood at 101.4% in Q2 FY25 v/s 95.3% in Q2 FY24 on account of higher claims ratio. Excluding NATCAT claims, COR stood at 99.7%. Underwriting loss stood at ₹ 48 crore for Q2 FY25 v/s underwriting profit of ₹ 37 crore in Q2 FY24, primarily due to NATCAT claims of ₹ 45 crore (net) in Q2 FY2025 as against Rs 23 Crore in Q2 FY2024. PAT growth despite NATCAT events due to better investment performance. ROE (annualized) at 18% (at 200% solvency at 24%). Solvency Margin for the Company continues to be strong at 312% as against the regulatory norm of 150% BALIC BALIC continues to record market beating growth of 34% in IRNB above private industry growth of 24% and overall industry growth of 21% Market share in IRNB terms increased from 8.2% to 8.9% in Q2 FY25 amongst private players In Q2 FY25 BALIC ranked 6th among private players on IRNB basis and 3rd on Retail NOPs. New Business Value grew by modest 3% due to higher proportion of lower margin unit linked business. Profit after tax for the quarter de-grew by 23% mainly on account of higher new business strain due to business growth and product mix Bajaj Finserv Health Integration work has commenced post acquisition of Vidal health Consolidated Revenue for Q2 FY25 is ₹ 233 Crore, *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, NOP – No. of Policies Highlights for the quarter Bajaj Finserv Direct Limited  Total Revenue for Q2 FY25 stands at ₹164 Cr.  Loss for the quarter has narrowed from ₹18 Crore in Q2 FY2024 to ₹6 Core in Q2 FY2025 Bajaj Finserv AMC  As on 30th Sep 2024 the total AUM stands at ₹16,294  The Company has launched 1 new fund during the quarter and recorded an AUM of ₹1,228 Core in the same. Bajaj Finance Limited Good quarter on volume/AUM growth & operating efficiency. Loan losses remained elevated in Q2. Profit after tax for Q2 FY25 increased by 13%. Capital adequacy remained strong at 21.69% as of 30 Sep 2024. Tier-1 capital was 20.9%. GNPA & NNPA is amongst the lowest in the industry. Bajaj Housing Finance Limited BHFL successfully concluded its Initial Public Offer (IPO) of ₹ 6,560 Crore. Consequently, BFL's shareholding in BHFL reduced from 100% to 88.75%. Profit after tax for Q2 FY25 increased by 21%. BHFL’s Capital adequacy ratio remained strong at 28.98% as of 30 Sep 2024. Tier-1 capital was 28.46% Bajaj Financial Securities Limited Net total income grew to Rs 121 Crore, an increase by 78% in Q2 FY25 Profit after tax grew to Rs 37 Crore, an increase by 185%. 8 BAJAJ FINSERV LTD. 9 Bajaj Group Structure Bajaj Holdings & Investment Limited (Listed) *36.67%2 *41.53%1 51%3 Bajaj Auto Limited (Listed) Bajaj Finserv Limited (Listed) Maharashtra Scooters Limited (Listed) Auto Business Arm Financial Services Arm Unregistered CIC* 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 Company Insurance Company Limited Vidal Healthcare Management Company Limited Limited Services Pvt. Limited) 100% 88.75% 1. 60.64% holding via promoter holding & promoter group Bajaj Housing Finance 2. 55.04% holding via promoter holding & promoter group Limited Bajaj Financial 3. 51% holding through promoter holding company Securities Limited 4. 54.70% holding via promoter holding & promoter group (Listed) 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 subsidiary which is BFS Ventures (BFSV) Note: Shareholding is as of 30 Sep 2024. * Effective stake including stake of subsidiaries 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 Company Limited (BALIC) Bajaj Finserv Direct (Life Insurance, Retirement & Pension) Limited (BFDL) Bajaj Finserv Limited (Listed) Bajaj Allianz General Insurance Company (Digital Marketplace & Technology Services) PRODUCTS & SOLUTIONS Limited (BAGIC) Financial Services (General and Health Insurance) PLATFORMS Bajaj Finance Limited (BFL) Bajaj Finserv Health (Consumer & Finance Business) Limited (BFHL) (Health-tech Platform and TPA services) Bajaj Housing Finance Limited (BHFL) (Mortgage and Developer Financing) Bajaj Financial Securities Bajaj Finserv Asset Management (Bajaj Limited (BFSL) AMC) (Digital Stockbroker) (Mutual Funds) *Unit Linked Insurance Plan 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 4,245 Locations 175 Locations (Urban: 1,596 | Rural: 2,649) 215,800+ POS 216 Branches (Active point of sale) BAJAJ ALLIANZ LIFE INSURANCE BAJAJ ALLIANZ GENERAL INSURANCE 218 Branches 562 Branches 150,000+ Individual Agents 190+ Corp. Agents and Banks 100+ Corp. Agents and Brokers 81,500+ POS 3,700+ PSF 63,600+ Individual Agents 14 BAJAJ FINSERV LTD. 15 Bajaj Finserv Consolidated profit recon All Figures in Rs. Crore Particulars Q2 FY2025 Remarks A. Consolidated Profit After Tax Q2 FY2025 2,087 Add: Change in Shareholding of Bajaj Finance Ltd. 46 Impact of reduction in shareholding of BFS Post QIP by BFL from 52.49% to 51.34%* Change in Shareholding of Bajaj Housing 7 Impact of change in shareholding of BFL from 100% to Finance Ltd. 88.75%, pursuant to IPO. B. Adjusted Profit After Tax Q2 FY2025 2,140 Adjusted Growth 11% Normal Growth 8% Impact of Exceptional Items 3% *Post exercise of warrants by BFS in Q42025, shareholding of BFS in BFL shall increase by 0.12% 16 Consolidated Revenue components – Q2 FY2025 Consolidated Revenue components for Q2 FY2025 (Ind AS) All Figures in Rs. Crore Revenue Mix Intercompany (Q2 FY2025) Bajaj Finserv- adjustments Standalone (1,640) -5% 33,703 4% Life Others1 1,227 Bajaj Finserv 1% Insurance 433 General 8,712 Consolidated Insurance (+ 53%) (+ 30%) Bajaj Finance 7,876 26% 17,095 (+ 15%) 1Includes Bajaj Markets* ₹ 164 Crore, Bajaj Finserv (+ 28%) health ₹ 233 Crore BFS AMC ₹ 10 Crore and BFS Ventures ₹ 25 Crore Consolidated Revenue components for Q2 FY2024 (Ind AS) Intercompany adjustments Bajaj Finserv- Standalone (1,254) 26,023 51% Bajaj Finserv 23% Life Others2 1019 General Insurance 318 Consolidated Insurance 5,706 (+ 25%) Bajaj Finance (+ 6%) BFS Standalone BFL Consol 6,852 (+ 27%) 2 Includes Bajaj Markets* ₹ 126 Crore, Bajaj Finserv health BAGIC BALIC 13,382 (+ 34%) ₹ 155 Crore and BFS AMC ₹ 3 Crore and BFS Ventures 34 Others Inter-company eliminations Crore * Denotes Bajaj Finserv Direct Limited 17 Consolidated profit components – Q2 FY2025 (BFS Share) Consolidated profit components for Q2 FY2025 (Ind AS) # All Figures in Rs. Crore Adjustments (Net of Tax) Intercompany Unrealized MTM Loss on BAGIC Investments – ₹ 25 Cr Bajaj Finserv- adjustments Unrealized MTM Loss on BALIC Investments – ₹ 42 Cr Standalone (1,165)$ 2,087 Life Others1 908 Bajaj Finserv General Insurance (90) Insurance Consolidated Bajaj Finance 41 (- 65%) (+ 8%) 340 (+ 20%) 1Includes Bajaj Markets* (₹ 7 Crore), eBH (₹ 32 Crore) 2,053 (+ 10%) BFS AMC (₹ 50 Crore) and BFS Ventures (₹ 1 Crore) Consolidated profit components for Q2 FY2024 (Ind AS) # Adjustments (Net of Tax) Intercompany Unrealized MTM Loss on BAGIC Investments – ₹ 61 Cr Bajaj Finserv- adjustments Unrealized MTM Loss on BALIC Investments – ₹ 11 Cr Standalone (989)$ Others2 1,929 Life 754 Bajaj Finserv Insurance (99) General Insurance 116 (8%) Consolidated Bajaj Finance (+ 24%) 283 (+ 21%) 2 Includes Bajaj Markets* (₹ 16 Crore), eBH (₹ 39 Crore) 1,864 (+ 28%) and BFS AMC (₹ 45 Crore) and BFS Ventures ₹ 1 Crore # - 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 2014 FY 2019 FY 2023 FY 2024 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% - * BHFL Started its operations from 2017 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 – Q2 and H1 FY2025 All Figures in Rs. Crore For the Quarter For the Period FY 2024 Previous Particulars Q2 FY2025 Q2 FY2024 Growth H1 FY2025 H1 FY2024 Growth Financial Year Gross Written Premium 5,871 7,298 (20%) 10,632 11,132 5% 20,630 GWP excluding Crop & 4,157 3,747 11% 8,821 7,581 16% 15,068 Govt. health Combined Ratio (CoR)# 101.4% 95.3% (6.1%) 102.2% 97.6% (4.6%) 99.9% Underwriting Result (48) 37 - (32) (5) - (166) Profit after Tax 494 468 6% 1,070 883 21% 1,550 Return on Average Equity* 18.0% 18.8% (0.8%) 19.4% 17.9% 1.5% 15.2% (Annualized) Solvency Ratio(Regulatory 312% 352% - 312% 352% - 349% requirement of 150%) * Return on Equity (ROE) is excluding fair value change. ROE (annualised) is estimated to be ~24% excluding the surplus capital maintained by the Company (at 200% solvency) # On IRDAI basis. Excluding NATCAT impact at 99.7% for Q2 FY2025 22 BAGIC – Growth compared to industry All Figures in Rs. Crore 4,50,000 12.0% 4,50,000 16.0% GDPI Trend GDPI excluding Crop & Govt. health Trend 4,00,000 4,00,000 14.0% 10.0% 9.8% 3,50,000 3,50,000 12.0% 2,78,549 3,00,000 8.0% 8.0% 3,00,000 7.3% 7.6% 2,47,147 10.0% 2,41,071 7.1% 2,50,000 2,50,000 2,15,189 6.4% 6.0% 8.0% 2,00,000 2,00,000 1,49,462 6.4% 6.5% 1,37,654 1,66,501 6.0% 6.2% 6.2% 6.0% 1,50,000 4.0% 1,50,000 1,40,879 1,33,658 5.8% 1,20,579 1,88,206 1,58,184 4.0% 1,00,000 74,113 77,194 1,00,000 90,280 1,02,087 2.0% 60,387 64,557 78,651 91,657 90,342 50,000 82,887 50,786 50,000 74,310 80,647 2.0% 53,952 39,353 43,907 45,997 47,375 41,928 43,377 23,327 23,242 21,035 20,651 0 15,337 20,473 0.0% 0 0.0% 7,267 5,841 11,057 10,557 12,387 14,908 7,506 8,746 3,719 4,129 FY23 FY24 Q2FY24 Q2FY25 H1FY24 H1FY25 FY23 FY24 Q2FY24 Q2FY25 H1FY24 H1FY25 BAGIC PSU Private Industry Market Share BAGIC PSU Private Market Share  Govt. Health premium of Rs. 800 Crore in CY vs Rs. 2,302 Crore in PY leading to GWP de-growth of 20%. Mandate for additional ~Rs. 2,400 Crore received during October, including this Q2 growth would have been at 13% in Q2 and 17% in H1,respectively.  Ex Crop & Govt. Health growth muted at 11% (Industry 4%) on account of:  De-growth in new private vehicle sales of 5%, growth of mere 5% in new 2W sales at industry level & BAGIC’s de-focus on CV business (due to profitability concerns) leading to Motor growth for BAGIC at 4% (Industry at 6%)  Excessive discounting in premium rates in Property - BAGIC de-growth at 4% (Industry degrowth at 11%) Source : IRDAI/GIC, GDPI : Gross Direct Premium Income | Private Insurers : Includes Standalone Health Insurers, and excludes AIC & ECGC 23 Industry Includes Standalone Health Insurers, Private Insurers, PSU and excludes AIC & ECGC Profit (PBT) Waterfall – H1 FY2025 vs H1 FY2024 All Figures in Rs. Crore Impact of NATCAT UW loss Rs. 32 events on Claims in H1 cr FY2025 Gross Loss - Rs 198 Cr Net Loss - Rs 45 Cr UW loss Rs. 5 cr Interest, Other Income and Capital Gains Rs. 1,461 cr Interest, Other Income and Capital Gains Rs. 1,186 cr PBT Higher Increase in Decrease in Increase in PBT H1 FY24 realized interest and net expense Claim ratio H1 FY25 gains other ratio 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 BAGIC - Capital Invested - Networth ROE (Annualized) AUM Mix 0% 0% No Capital infusion Accumulated profit* 98% of Net since FY08 Worth as at 30 Sep 2024 H1 FY25 19.4% 12,188 H1 FY24 17.9% H1 FY25 11,911 277 10,411 Q2 FY25 18.0% H1 FY24 10,134 34% 277 Q2 FY24 18.8% 11,474 FY24 11,197 FY24 15.2% 277 9,806 FY23 9,530 FY23 15.0% 277 51% Net Worth Reserves Capital Invested Annualized RoE excluding surplus capital consistently upwards of 20% at 200% solvency AUM (cash and investments) 15% Realised Investment Return 2.84 2.72 2.83 2.62 (Annualized) 12% 8% 31,196 31,949 H1 FY25 9.34% 27,809 29,511 H1 FY24 8.45% Bonds Equity Gsec Money Market Fixed Deposit Q2 FY25 8.97% Q2 FY24 8.14% FY24 7.72% 96.5% of debt portfolio is in AAA or sovereign FY23 7.66% securities. 96.8% of Equity investment is in FY23 FY24 H1 FY24 H1 FY25 BSE 100 stocks Investment Leverage 25 Investment Leverage: AUM/Net worth, Capital Invested includes Share capital and share premium BAGIC – Balanced Product Mix BUSINESS MIX 8% 9% 6% 7% 8% 9% 1% 8% 14% 14% 18% 21% 32% 9% 14% 16% 11% 19% 20% 12% 17% 17% 17% 12% 21% 20% 14% 9% 6% 14% 5% 13% 5% 5% 4% 3% 35% 29% 25% 25% 28% 20% FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Motor Retail Health Group Health Property, Liability and Engineering Agri (Crop Insurance) Government Health Others  Govt. Health premium of Rs. 800 Crore in CY vs Rs. 2,302 Crore in PY leading to GWP de-growth of 20%. Mandate for additional Rs. ~2,400 Crore received during October. This timing variance has led to change in business mix for Govt. health. 26 BAGIC – Diversified Distribution Mix Channel Mix 25% 31% 36% 41% 46% 58% 48% 35% 44% 35% 31% 3% 23% 2% 3% 2% 3% 10% 10% 1% 9% 8% 10% 6% 15% 16% 12% 12% 14% 13% FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Individual Agents Corporate Agents - Banks Corporate Agents - Others Brokers Direct Business Bancassurance Agency & Retail OEMs* & Dealer Rural Focus Digital ecosystem  Over 190+ corporate agents  63,600+ agents & 81,500+  45+ national Tie-ups and  62+ lakh farmer applications  25+ Partnerships across and banca partners. POSP over 9,300 network of insured in H1FY25 Insuretech companies,  Major New Tie-ups in H1  Realignment of retail dealers across pan India  Issued 57+ lakh NOPs under aggregators, wallets such as FY25: HSBC, Shriram Finance channels to drive profitable  Major National Tie-ups: crop insurance in H1 FY25 Phone Pe, payments banks, Ltd, Namdev Finvest Pvt Ltd, growth segmented as Maruti, Honda, Toyota,  Received crop insurance etc. Chhatrapati Rajashri Shahu Enterprise Partners, Growth Mahindra, Hyundai, MG, Kia, enrollments from 15,186 CSC Urban Co Bank Ltd, Kerala Markets, Motor Agency & VW, BMW, TATA Motors, Bajaj, centers in H1 FY25 Finance Corporation. Retail & SME RE, Yamaha, Piaggio, JCB,  22,500+ active CSC centers Suzuki TW, Hero, Bgauss, in H1 FY25  GEO – Increase penetration with underpenetrated Tier II & Revoult, Lexus, Nissan, Tier III cities Renault, Hero Electric, Ampere. Note: The components might not add up to total of 100% due to rounding off | * Original Equipment Manufacturer, CSC - Customer Service centers 27 Govt health is through the direct business. Change in the timing for Govt. business has impacted direct channel. BAGIC – Product Portfolio Motor All Figures in Rs. Crore Type FY23 FY24 Q2 FY2024 Q2 FY2025 H1 FY2024 H1 FY2025 Motor OD 44% 46% 47% 51% 47% 52% Motor TP 56% 54% 53% 49% 53% 48% Grand Total 100% 100% 100% 100% 100% 100% Product Mix – Motor Motor OD 70.5% 63.6% 63.7% 65.0% 67.3% 67.2% Motor TP 77.2% 78.4% 86.7% 72.2% 83.2% 73.6% 5,848 5,349 3,149 2,997 2,769 2,925 1,427 1,484 1,468 1,398 2,351 2,699 760 730 1,302 1,527 667 754 FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Motor OD Motor TP Loss Ratio 28 BAGIC – Product Portfolio Health and PA All Figures in Rs. Crore Type FY23 FY24 Q2 FY2024 Q2 FY2025 H1 FY2024 H1 FY2025 Retail 26% 14% 7% 12% 10% 14% Group (Employer-Employee & Others) 56% 40% 26% 51% 34% 56% Govt. Schemes 6% 40% 64% 33% 51% 23% Travel Insurance 5% 3% 1% 2% 2% 3% P.A 7% 3% 2% 2% 3% 3% Grand Total 100% 100% 100% 100% 100% 100% Product Mix – Health and P.A 74.3% 85.0% 84.7% 92.5% 83.1% 88.4% 230 6,943 189 2,770 4,548 132 3,607 112 3,829 133 3,373 68 52 164 53 123 194 2,450 2,302 886 231 2,764 2,300 54 1,895 798 2,160 1,547 935 1,247 889 990 454 528 251 299 FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 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 Q2 FY2024 Q2 FY2025 H1 FY2024 H1 FY2025 Fire 33% 31% 21% 24% 35% 39% Marine 4% 4% 3% 4% 5% 5% Engineering 5% 5% 4% 5% 6% 6% Liability 8% 8% 6% 7% 10% 11% Commercial Lines 49% 48% 34% 41% 55% 61% Crop Insurance 42% 36% 56% 48% 33% 24% Others# 9% 15% 10% 11% 11% 14% Grand Total 100% 100% 100% 100% 100% 100% Product Mix – Commercial Line and others 65.6% 58.4% 69.3% 63.6% 61.7% 71.0% 7,682 6,615 1,179 613 2,795 2,755 3,740 3,803 615 425 545 507 408 2,233 1,906 925 299 287 300 141 1,248 171 182 231 218 360 425 2,154 2,385 1,248 89 914 218 233 65 127 103 1,317 1,493 473 453 78 FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Fire Marine Engineering Liability Crop insurance Others Loss Ratio # includes Rural, extended warranty, aviation and all other miscellaneous segments. 30  Key Technology & Customer Initiatives of H1 FY2025 – [1/2] Digital Journey Metrics Digital Servicing (AI Enabled BOT) Digital Issuance Q1 2025 Q2 2025 45.7 Mn BOT messages exchanged Q1 2025 Q2 2025 RPA for Issuance: Enabled 37 processes 2.39 L calls handled by voice BOT Loader optimization/automation: TAT ↓ from 72.4% 76.0% Voice BOT C-SAT score - 86% 96.4% 96.5% 60-90 mins to 5 mins Digital Payment Net Promoter Score* Penny-free payments: Paperless bank Q1 2025 Q2 2025 FY 2023 FY 2024 verification TAT ↓ from 48 Hrs to 3 Hrs FY 2023 FY 2024 Motor Health 95.1% 95.5% Realtime payments via NEFT: Leading insurer at 72 69 ↑ 70 Maruti dealerships for servicing and payments  ↑ 75  Key Initiatives Summary GenAI Initiatives Core Transformation Data Platform Modernization GPT Workbench Launched Phase one of our scalable cloud data Mass Health & Surety Bond LOB was successfully made platform, featuring advanced analytics & Gen AI A playground for employees to explore & implement live on the Maximus platform, marking a significant capabilities that will eliminate Data Silos & enable data use cases using Large language models milestone in the transformation project and AI democratization Cattle Pre-inspection App In-App payments on WhatsApp AskUs Application for real-time cattle inspection with features GenAI-powered employee assistant for quick, easy to capture live cattle images and recording of key Integrated UPI payments into WhatsApp, enabling animal details such as type, age, breed, and other access to HR, Admin, IT policies, delivering information seamless renewal within WhatsApp relevant data directly into the system in a simplified way AI – Artificial Intelligence, RPA – Robotic Process Automation, * NPS conducted by an independent agency across the customer journey for 31 FY2024  Key Technology & Customer Initiatives of H1 FY2025 –[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 amongst the most used app our customers in Insurance Industry 14.96 Mn Visitors | 3.28 L Policies Issued 4.97~ Mn Total Downloads | 9.55 L Active Users BAGICARE – CRM B Care Portal & App Cross Pollination (BAGIC-BALIC), DNC flow implementation, Our flagship portal & App for agents has more than 90 products Claim Intimation in AGRINXT through CRM available for policy issuance and services 2.82 Mn Policies Issued with over | 1433 Crore of Business 2.1 Mn Service Requests | 6.7 Mn Leads Generated Booking 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 13.6 L Policies Issued with over 141 Crore of Business 9.83 L+ Downloads Booking 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 9.97 L+ Unique Users, 45.7 Mn Messages Exchanged 1.35L + Unique Claim intimation calls 32 DNC – Do not call, * Numbers are as on H1 FY25. All others are for the period BAGIC – Risk Management  96.5% of the debt portfolio in AAA and sovereign assets and 88.8% of Equity in Nifty 50 stocks & 96.8% 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 foreign reinsurers and GIC  Large reinsurance capacity & optimum retention Re-Insurance  Robust process and analytics to monitor 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 management (Motor TP) over Vintages.  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  Customer obsession 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 562 branches  Balanced channel mix – Agency, Institutional Business including Bancassurance, and BALIC Diversified Distribution Direct  Strong presence in group credit protection and online offerings  One of the largest Agency channel in terms of IRNB amongst private players Strong proprietary channels  Robust BALIC Direct channel propelling up-selling and cross-selling  Use of innovation & data analytics as a strategic differentiator for customers & sales partners Innovative products and Sustainable product mix  Diverse and innovative suite of products across various need segments, with an aspiration to provide customers “Best in Class” features Systematic in Systematic Out; FTR : First Time Right 35 BALIC – Key Highlights - Q2 and H1 FY2025 All Figures in Rs. Crore For the quarter For the Period FY 2024 Previous financial Particulars Q2 FY2025 Q2 FY2024 Growth H1 FY2025 H1 FY2024 Growth year Individual Rated NB 1,895 1,415 34% 3,189 2,443 31% 6,326 Retail Protection NB 84 60 40% 156 116 34% 241 Group Protection NB 609 435 40% 1,359 1,085 25% 2,315 Renewal Premium 3,342 2,517 33% 5,819 4,416 32% 11,549 Gross Written Premium 6,544 5,338 23% 11,562 9,396 23% 23,043 Profit After Tax (PAT) 148 193 (23%) 245 349 (30%) 563 AUM 1,23,178 98,700 25% 1,23,178 98,700 25% 1,09,829 Net New Business Value (NBV) 245 237 3% 348 331 5% 1,061 Solvency Ratio (Regulatory 378% 466% - 378% 466% - 432% requirement of 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 IRNB Trend 50,000 10,000 80,000 10,000 BALIC Growth 21% 34% 31% Pvt Market 45,000 24% 9,000 24% 9,000 Growth 8% 70,000 Overall Industry 5% 21% 21% 40,000 8,000 8,000 Growth 60,000 BALIC Market 5.0% 5.8% 35,000 5.5% 6.1% 7,000 5.6% 52,686 6.1% 7,000 Share* 31,235 1,20,000 10,000 50,000 1,08,975 30,000 6,000 6,000 1,03,956 43,671 9,000 25,748 1,00,000 40,000 5,000 8,000 25,000 5,000 35,600 21,243 7,000 80,000 73,870 20,000 4,000 28,737 4,000 68,378 6,000 17,142 30,000 6,326 60,000 5,000 15,000 3,000 3,000 5,214 3,189 20,000 4,000 40,000 10,000 2,000 2,443 2,000 3,000 1,895 10,000 2,000 5,000 1,415 1,000 1,000 20,000 1,000 - - - - - - Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 FY23 FY24 Industry Private Life Insurers BALIC 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% 6,326 +34% +31% +20% +29% +23% 2,547 5,214 2,122 3,189 1,297 2,443 1,056 1,895 752 1,415 583 FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Institutional Business BALIC Direct +17% +35% +31% +49% 737 +48% +58% 3,042 2,598 494 411 1,481 1,127 242 260 900 668 164 FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 FY23 FY24 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Y-o-Y Growth Q-o-Q Growth YTD Growth 38 BALIC - Product mix Product Mix 31% 34% 39% 37% 50%