bfsl presentation - road show - july 08 final without links

7/21/2019 BFSL Presentation - ROAD SHOW - JULY 08 FINAL Without Links

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Bajaj FinServ Limited

1



I,-I . Oneof t/e fastest

$rowin$

economies


*nd fastest $rowin$ economy0 after C/ina Cloc1in$ an avera$e $rowt/ rate of 2(3

456ected to $row at 273 over t/e ne5t decade

Source: United Nations Statistics Division www.data.un.org

O66ortunities

3



Immense

mar1et6otential for

financial

investments


8nder6enetrated mar1et

Low Insurance density wit/ 6enetration under 93 4



Consum6tion Boom Bajaj FinServ Limited

Low -ebt to "-P

andSavin$s lar$ely

invested as

de6osits 5



Lendin$

Investments

Protection


n entire ran$e of financial

6roducts and services coverin$

individuals entire life cycle

To $row for0 and wit/0 India ;ision

Cover

Offer

Bajaj FinServ

6



Conce6tual structure of BFS

Distribution Company - Advice and Distribution of all financial products

Cons. Finance Insurance AMC 3rd Party

Group Sared Services opportunity

One Face

to customer

Consolidated

Backend activities

Focused

Product companies

Bajaj Financial Services "rou6 Structure

Eisting !usinesses

customers

Products and risk

Process


7



Bajaj FinServ Ltd

Financial <esults


8



Owners/i6

All values in INR million unless specifed

otherwise

Subsidiaries ! associates " oldin#

$a%a% Allian& Life Insurance '(.)"

$a%a% Allian& "eneral '(.)"

$a%a% Auto Finance ().*"

$a%a% Allian& Financial *).)"

Distributors

$a%a% Financial Solutions +)).)"

Cost Mar,et alue

ter investments '/01+

'/*00


Rs in million=) >F?+(

=) >F?+7 F? +7

@ey Business Statistics

Gross 2rittenPremium

$a%a% Allian& ifeInsurance +0/('+ +)/*11 1'/4*3

Gross 2rittenPremium

$a%a% Allian&General Insurance '/33* */'3' 4*/'0)

Funds Deployed $a%a% Auto Finance 5/344 '/(34 3)/353

2ind ener#y

#enerated $a%a% FinServ td ++0 '+ 3(0

ter revenues +5( +(4 '3+

Consolidated entities

9



Consolidated se$ment financialsRs in million =) > F?+( =) > F?+7 F? +7

Se$ment revenue

Insurance - 6et premium earned 44/(1* +3/(+( +++/4'*

Investment ! .Income 7+3/4*48 5/5(+ 1/1(1

subtotal (0*A% *+0+99 )*)0**A

2indmill ++0 ') 3(0

Investments ! oters +*' +(4 504Total (09)7 *+0*' )**0*9A

Se$ment Profit > LossD

Insurance - General - ife

++*75108

3*(7()(8

+5'174+318

2indmill 4) 7 4*8 7 4'8

9etail financin# +4 +5 03

Investments ! oters +44 +3* 540

Profit before ta5 A*(D ' **A

Profit after ta5 & minority interest %*D A7D %*'D


10



Financials Standalone Bajaj FinServ Limited

11



Insurance Industry

12



Low density0 stron$

"-P $rowt/ and$rowin$ 6enetration E

favorable climate for

Life Insurance $rowt/

Low density0 stron$

"-P $rowt/ and$rowin$ 6enetration E

favorable climate for

Life Insurance $rowt/

T/e life insurance o66ortunity

1 -Life insurance density – Swiss Re Sigma report 2006

2- Estimates by JP organ !ssociates

1"S# $ %&R '(

"#$"% "#$&' '#()* )#"'+

&,#&$*+&#%+*

"'"#&$+ "'(#&)%

''"#*'*

I n d i a

P R

C h i n a

T h ai l an d

M al a y si a

S .K or e a

U S

J a p an

F r an c e

UK

Life insurance density (IR per Capita!

Penetration le"els still lo#er than

de"eloped countries

- Pre$iu$%&'P is at ) co$pared to *)+,)

de"eloped countries

- Pre$iu$ per capita is IR -/00 a1ainst an a"era1e IR *2/0 for 3sia

- 4nly a third of the tar1et population is

esti$ated to 5e insured

13



T/e Indian Insurance industry. 6ast0 6resent and future

1 – Swiss Re estimates extended by 1 year – ASSOCHAM estimates 2010 extended by 2 years

2 – Mckinsey estimate 2011 $ 80 Bn - $ 100 Bn – we a!e c"nsidered $80 Bn #%s 12&'( )r"wt in 2012

16) *!+R 0,-12

20) *!+R 0,-12

*isca year endin) +1 Marc

(**

"#***

"#(**

'#***'#(**

,#***

,#(**

$#***

$#(**

(#***

'**, '**$ '**( '**& '**+ '*"'

on life

Life

&6P IR 7n

14



T/e $reat Indian middle class

Source cinsey +.oba. institute

15



How it all started

,onLife mar1et

$ency t/e only distribution

c/annel

(+3 of business done

directly t/rou$/ A0+++

offices of $overnment

com6anies

,o 6roduct innovation

,o incentive for $ood

service

Cas/less claim settlement

was un/eard of

,onLife

Focus on retail

Pioneered several

innovative services

Tieu6 wit/ nontraditional

c/annels for distributionof 6roducts li1e motor

dealers and

manufacturers0 travel

a$ents0 ban1s

,onLife

Tieu6 wit/ motor dealers

and manufacturers to increase

volumes

Levera$e IT and focus on

ITenabled systems

Create ima$e for trans6arency

and innovation

OP4G O6erational

45cellenceD met/odolo$y

claims /andlin$0 customer

serviceD

Insurance environmentuntil *++)

Start of Bajajllian! H;/at we did differentlycom6ared to our 6eers

-! Life insurance corporation (state o#ned co$pany!

Life mar1et

Only one Life com6any) was

o6eratin$ till *++)

Products li1e unit lin1ed

6olicies did not e5ist

Life

Jinimi!e setu6 costs for

distribution

e$ Banyan tree

Fast roll out for 6anIndian

6resence

Life

Fast and nationwide rollout of

branc/es to levera$e cross

sell> u6sell

Focus not only on tier )0 but

also on tier * K % cities

Buildin$ Bajaj llian!

16



Bajaj llian!Life Insurance Co

17



Source: /0D1 we!site.

22 1PE 3 "*4 o5 Single Premium 6 "**4 o5 0egular Premium

7a8a8 3llian9 Life + Mar:etShare on 3P;<< 5asis

=002%0>

Fiscal year ending 31 March

-?.2)

-0.?)

*.=).-)

-.=)

ICICI

PRU

7a8a8

3llian9

S7I Life @'FC

Std Life

4thers

P"t (-= cos!

?.)

Reliance

Life

A- =00>%0,

ICICI

PRU

7a8a8

3llian9

S7I Life

-/.)

>.-) 2.>)

.,) .*)

=-.-)

MaB

life

7irla SL 4thers

P"t (-= cos!

7/C8s market s9are is ,)4 5or ;D <a= *) as compared to $)4 as on ,"st <arc9 #'**)

18



Bajaj llian! Life

: Amon#st private insurers ; durin# F<)0

Second lar#est in ne= business premium

First position on number of policies issues

: Gross 2ritten Premium > 04" 9s. 1' billion v>s 9s. *3 billion in P. <r

: Mar,et sare > +).33 v>s '.(" in P. <r on AP?@ basis

: 6umber of policies > 3.' million v>s 4.+ million in P. <r

: nit lin,ed funds increased by +++"

: +4 ne= products launced durin# te current year

: Currently 34 individual products ! 1 product #roups on offer

P4 E )+3 of Sin$le Premium K )++3 of <e$ular Premium 19



Performance Summary

<s In billion=)>F?+( =)>F?+7 F? +7

I,< Bn I,< Bn I,< Bn

"ross written 6remium )7A )+9 ('*

6e= business premium 0.4 '.4 5'.)

6et earned premium +0.( +).* 1'.+Total income 9A( ))() )+')

nnuali!ed 6remiumeMuivalent

' ++

Policyolder surplusB7deficit8 ).55 ).') +.10

Sareolder ProfitB7oss8 7).518 7).()8 74.+38

Profit > Loss D ++%D +%+ +)9D

6et contribution to policyolders account

).1 ).* 4.1

20P4 E )+3 of Sin$le Premium K )++3 of <e$ular Premium



S/are/olders funds & Investments overview

<s in million

as onHune +7

as onJar +7

I,< Jn I,< Jn

Sare Capital +/*)' +/*)'

Sare premium +)/5)) +)/5))

Sub-total )*0)+' )*0)+'

$alance in P ! account

7*/*158 7(/0118

Total 09)) '0*+7otal capital infused durin# te year > 9s. */+)+ million

<s in million

as onHune +7

as onJar +7

I,< Jn I,< Jn

Sareolders +)/)(3 ++/(*1

raditionalPolicyolders +'/)(3 +(/50'

nit in,edPolicyolders +)3/144 +)1/*(4

Total )%)0++7 )%9077

7a8a8 3llian9 Life

S7I Life

@'FC SL

ICICI Pru

&ross 6ritten Pre$iu$ to Share Capital =002%0>

>.0

/.*=

?.**

?.*0

4fficient ca6ital mana$ement

21



,ew Business c/ieved Profit

,BPD trend

Period P4 ,BP

I,< Jn I,< Jn

4))0B)1 + '/5() +/(0'

4))'B)0 + 5/*0+ +/(50

F< 4))'B)0 *1/1*3 +4/)41

F< 4))5B)' 34/33) '/)35

,BP Com6arison wit/ ot/er Life Com6anies mi$/t not be very relevant as actuarial

ssum6tions & met/odolo$y used are li1ely to vary from Com6any to Com6any0

in t/e absence of any common a$reed 6rocess

22 1PE 3 "*4 o5 Single Premium 6 "**4 o5 0egular Premium22



Bajaj llian!"eneral Insurance Co

23



Bajaj llian! "eneral =)>F?+(DAmon#st private insurers/ durin# F<)0/ maintained second position in

terms of G2P

G2P > 40"/ 9s.'.3 billion vBs 9s.*.' billion in +BF<)0

Mar,et sare > 0.*" vBs '.(" in +BF<)0

6et premium earned> (3" 9s.(.+ billion vBs 9s.4.0 billion in +BF<)0

6umber of policies sold > +.0 million vBs +.( million in +BF<)0

Investible surplus > 9s. 44.5 billion

Stron# retention ration > increased to '4" from 55"

osses from Motor Pool estimated at 9s +4) million vBs 9s 1) million

proportionately in +BF<)0

$ancassurance/ direct retail cannels #ro=in# above 5)"24



Performance Summary<s in billion =)>F?+( =)>F?+7 F?+7

"ross written 6remium '%A 9'A *97

,et earned 6remium A+ *7A )A)

6et Insurance Income ).5) ).53 4.1

nder=ritin# profiteEcludin# pool losses 7).4(8 ).)3 ).4

nder=ritin# profit

includin# pool losses 7).358 7).)58 7).48

Profit before ta5 +)* +* )'

Profit after ta5 ++' +)% ))

oss ratio '4.4" 51.1" 55.'"

Combined ratioe5cludin$ 6ool losses )+973 (7(3 (793

Combined ratioincludin$ 6ool losses )+7'3 )+*)3 )+)93

9etention ratio '+.1" 5*.1" 51.+"

25

Focus on cas/ flows0

$rowt/ in invested sur6lus

<s in billions on

Hune +7s on

Jarc/ +7

Cas andinvestments 44.54 4).(0

ter assets (.(( (.4)

Insurance reserves +0.*3 +5.35

ter liabilities 4.'3 4.*0

6et =ort *.0) *.'*

Free cas flo= 4.+5 *.)(

/ree cas f.ow $ increase in inested surp.us net of financing cas

f.ows



To capitalize on the growing health and motor segments and with corporate pricing

under pressure, Bajaj Allianz has increased its presence in retail business

Chan1in1 5usiness $iB

By 2012, it is expected

that otor and !ealthwill constitute more than

two thirds o" the mar#et

0) -0) =0) ?0) 0) /0) *0)

4thers

@ealth

Motor

Corporate

=002%0> =00*%02

0) -0) =0) ?0) 0) /0) *0) 20)

A- =00>%0, =002%0> =00*%02

4thers

@ealth

Motor

Corporate

7usiness MiB+Mar:et 7usiness MiB+ 7a8a8 3llian9

26



Ca6ital 4fficiency . F?+7

<s in millionS/areca6ital

S/are6remium

Totalca6italbrou$/t in

"PF?+7

"P>4Muity

<eturn on4Muity

ICICI 3''( *133 1')' 33((' 3.(* +).4"

Bajaj llian! ++)4 +555 4'50 4()(3 0.50 4+.*"

<eliance +)'4 (110 5)') +1(5( 3.4+ 6e#ative

IT"I 44)) 3)) 4*)) +43*0 (.1( 4.("

TT 44*) ) 44*) 0+3( 3.54 5.("

Bajaj llian! is t/e benc/mar1 for efficient use of ca6ital#i$/est return on eMuity in t/e 6rivate sector

Return on euity is on simp.e aerage euity3 +4P as per %R#! website 27



Bajaj uto Finance . <etail Financin$


28



;isionBajaj uto FinanceDevelop a niue $usiness Model

focused on deliverin# ran#e of

consumer lendin# products to Indian

Middle Class serviced by best in

breed specialists

Bajaj FinServ LimitedStrate$y

: $uild and launc innovative products: ffer full product suite: evera#e eEistin# #aps of service

differentiationH in te mar,et

Innovate to $row . Product and servicesPlu$ & Play Jodel for accelerated $rowt/

: $uild partnersips =it consumer databases: evera#e distribution ! customers to build

faster #ro=t en#ines

For$in$ Business Partners/i6s

: utsource ecnolo#y ! perations for

variable cost structure: =n B Automate ris, ! under=ritin# process

: Sell more ! more to eac customer: Acuisition and operatin# cost advanta#e

Levera$e C<J Ca6abilities

Scalable O6eratin$ Platform

Leadin$ financer of N

=o =eelers

Consumer durables ! personal computers

Personal loans

,ew business lines

Securiti&ation IP financin#

oans a#ainst sares oans a#ainst

property 7to launc8

Personal loans

JCross-sell JSmall business loans29



Business Performance

<s in million =)>F?+( =)>F?+7

*++' .

+7

utomobiles 4/)'4 3/*0( +(/0((

Consumer -urables +/34' 4/3(( 5/3)'

Personal Com6uters 5+4 +/310 (/540

Personal Loans 1+* +)5 +/54'

Securiti!ed retailasset 6ool - - 4/*1'

Total -isbursals (/145 '/3(4 3)/353

<s in million =)>F?+( =)>F?+7

*++' .

+7

Total Income +/404 +/)*4 */)4'

Interest &Finance c/ar$es (3* 3'0 +/')(

Ot/er 456enses '14 5)1 4/1'*

-e6reciation +) * (0

Provision for ta5 +* +0 11

Profit for t/eyear 3) (+ 4)+

Financial PerformanceBajaj FinServ Limited

sset base of <s *' billion

Boo1 value 6er s/are . <s *()

Ca6ital adeMuacy ratio . A+3 <BI norm . )*3 D

4arnin$ 6er s/are diluted D . <s +7* in =)>F?+( v>s

<s ))* in =)>F?+7 & <s 97 in P ?r 30



Thank youThank you

No part of this presentation is to be circulated, quoted, or reproduced for any distribution without

prior written approval from Bajaj FinServ Limited, Mumbai-une !oad, "#urdi, une-$%% &'(, )ndia*

+ertain part of this presentation describin estimates, objectives and projections may be aforward loo#in statement. within the meanin of applicable laws and reulations* "ctual resultsmiht di/er materially from those either e0pressed or implied* 1ndue reliance should not be placedon such statements 2 values because by their nature, they are subject to #nown and un#nown ris#sand uncertainties and can be a/ected by numerous factors that could cause actual results to di/ermaterially* 3his material was used by Bajaj FinServ Limited durin an oral presentation4 it is not a

complete record of the discussion*


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bfsl presentation - road show - july 08 final without links

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