Bajaj Allianz General reports 28% growth in net profit to Rs 425 cr

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Bajaj Allianz General Insurance recorded a 28% growth in net income to Rs 425 crore in the September quarter as pandemic claims dwindled.

The company had recorded a net profit of Rs 322 crore during the same period of FY21. Net income rose 21.1% to Rs 5,034 crore in the current quarter from Rs 4,156 crore a year ago, despite difficult times due to floods and cyclones in the middle of the year. top-down impact of the pandemic.

The company posted a strong performance in the September quarter, with revenues increasing 21.1% to Rs 5,034 crore from Rs 4,156 crore in Q2FY21.

Despite the heavy losses caused by the monsoon floods and cyclone, we recorded a net profit of Rs 425 crore, registering a growth of 28% compared to Rs 332 crore in the same period last year, Tapan Singhel, MD and managing director of Bajaj Allianz General Insurance, told PTI on Wednesday from its Pune headquarters.

The growth was mainly driven by health insurance, mainly driven by the government health business, a recovery in the automotive segment that grew 7.4% despite the continued decline in the two-wheeler segment, Singhel said.

During the second quarter, the fire increased 31.5% to Rs 445 crore, sea freight increased 35% to Rs 43 crore, the engine increased slightly by 7.6% to Rs 1,206 crore, the Healthcare soared 154.9% to Rs 1,433 crore from Rs 562 crore, bringing this segment’s H1 policy income to Rs 1,984 crore, up 96.1% from Rs 1,012 crore.

However, crop insurance fell 12.3% to Rs 1,542 crore from Rs 1,759 crore, as did engineering, which fell 9% to Rs 58 crore from Rs 64 crore, and aviation has declined by over 31% to Rs 3 crore from Rs 5 crore.

Flooding in Maharashtra saw the company settle over 1,000 claims worth almost Rs 300 crore and for Cyclone Tauktae it settled over 1,000 claims worth over Rs 500 crore. Rs. For T2 FY22, the loss ratio stood at 77.6% compared to 74.2% in T2FY21; However, excluding heavy rains and the impact of COVID-19 claims, the loss rate was 73.7% compared to 69.4% in the second quarter of FY21, Singhel said.

The first half was bad overall as the second wave took a heavy toll in the first quarter, coupled with natural calamities. Yet regardless of the challenges, the company reported revenue growth of 16.8% to Rs 7,529 crore in the first half of fiscal 22 compared to Rs 6,445 crore in the same period l last year, Singhel said, adding that the company settled 300% more pandemic claims in the first half.

The company achieved an underwriting profit of Rs 19 crore in the first half of fiscal 22 despite the difficult conditions and also managed to maintain a solvency ratio of 350%, highlighting a well-capitalized company, a- he adds.

The result was also helped by healthy growth in investment income, which rose 35% to Rs 1,032 crore in the first half of fiscal 22 from Rs 766 crore in the same period l ‘last year.

In terms of gross direct premium income, the company is ahead of the industry, reaching 21% compared to industry growth of just 12.1% in the second quarter, he said. Regarding the claims of the second wave of the pandemic, Singhel said it had seriously affected the industry’s claims rate.

As for Bajaj Allianz, we had a more than 300% increase in COVID-19 related claims compared to the same period last year, Singhel said, adding an interesting point to note here, which is that while we are seeing a gradual decrease in claims related to pandemic issues with more people getting vaccinated, we are also seeing an increase in non-COVID claims in S1FY22, roughly 50% more than those claims in S1FY21 . As to whether the virus has been successfully brought under control, he said it is too early to call it a victory because we cannot predict the future.

On the positive side, regulator Irdai has formed a task force to explore the possibility of forming a pandemic pool that will help stabilize the economy if we face such severe lockdowns again from pandemics, he said. declared.

The pandemic has made us realize that we need to improve our healthcare infrastructure to provide timely medical support to those in need, he said and urged other states to follow Rajasthan and J&K, which has insured almost all of its eligible citizens.

He also called for a health sector regulator and a reduction in the GST on insurance policies.

Seeming hopeful, Singhel said we are already seeing a recovery in auto and travel insurance. Commercial professions are also growing. Therefore, I believe that as we move into the next fiscal year, there should be enough and more stability in the industry.

The key is more vaccination and containing a third wave, he concluded.

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Posted on: Wednesday November 03, 2021, 8:27 PM IST

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