Bajaj Finserv’s consolidated net profit during Q1 FY23 rose 57 per cent to ₹1,309 crore, largely aided by a 2.6-fold rise in the net profit of wholly-owned subsidiary Bajaj Finance.

Led by strong loan growth and fall in provisions, Bajaj Finance reported its highest-ever consolidated quarterly profit of ₹2,596 crore, with assets under management crossing the milestone of ₹2-lakh crore in Q1 FY23.

The consolidated earnings of Bajaj Finserv include the results of Bajaj Finance, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company. The board of the company also approved the sub-division of equity shares of face value of ₹5 each to ₹1 each, and issue of one fully paid bonus equity share against every equity share.

Insurance subsidiaries

Bajaj Allianz General Insurance’s net profit for the quarter was up 14 per cent at ₹411 crore, with gross written premium rising by 25 per cent to ₹3,119 crore. Net earned premium for Q1 was ₹1,852 crore.

“Claims ratio increased to 77.9 per cent in Q1 compared with 75.9 per cent in Q1 FY22, largely on account of higher severity (impact of inflation) in motor and health segments,” the parent company said in a release. This also led the combined ratio to worsen to 104.6 per cent from 103.4 per cent a year ago, with the company taking an underwriting loss of ₹61 crore against a profit of ₹15 crore.

Net profit for Bajaj Allianz Life Insurance was higher by 48 per cent year-on-year at ₹124 crore, aided by an over two-fold rise in the new business premium to ₹2,917 crore. Gross written premium increased by 74 per cent y-o-y to ₹4,369 crore in the reporting quarter. Renewal premium was up 19 per cent at ₹1,452 crore. The insurer’s net new business value — a measure of profitability — improved to ₹135 crore from ₹25 crore in the previous year.

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