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Earnings

Bajaj Finserv expects to continue double digit growth in general insurance business

Updated : May 17, 2019 12:33 PM IST

Bajaj Finserv Thursday posted a 32 percent rise in consolidated net profit at Rs 839 crore for the March quarter of the financial year 2018-19. The company had reported a consolidated net profit of Rs 637 crore in January-March quarter of the previous fiscal. Total revenue grew by 44 percent to Rs 12,995 crore in the fourth quarter of last fiscal as compared with Rs 9,055 crore in the year-ago period.

Bajaj Finserv's fourth-quarter earnings were sequentially strong with robust growth in the insurance businesses while finance share in consolidated profits continues to rise. S Sreenivasan, CFO, Bajaj Finserv, shared his views and outlook.

“The light business in the second half has been fairly muted for the industry as a whole particularly for those who are reliant on unit-linked business. We have taken a call a couple of years ago to balance our product mix. So that has helped us quite a bit,” Sreenivasan said.

“Our individual rate of premium for this quarter has grown 45 percent but what is more pleasing for us is that the light business has done extremely well in Q4,” he said.

“Growth in the general insurance business is a bit uncertain in the market. Auto industry is not doing that well. It is a big driver for growth. Capital investments across the industry is also another big lever for growth. Both have been quite muted because of uncertainties in terms of the equity markets and election outcome. However, this business even in a low growth scenario typically grows in double digits and we have been always growing above market for the last few years and that is our intention,” Srinivasan said.
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