Bajaj Auto Limited · NSE:BAJAJ_AUTO
Bajaj Auto — Bajaj Allianz Life Insurance — FY2007 Earnings Presentation
18 slides from Bajaj Auto's earnings presentation, Jun 25, 2007
Slide 1: Bajaj Allianz Life Insurance Co. Ltd. FY 2006-07
Bajaj Allianz Life Insurance Co. Ltd. FY 2006-07 Bajaj Allianz Life Insurance Co. Ltd. <25th June 2007> 1
Slide 2: Index
Index Private Private Life Life Insurance Insurance Market Market Key Key Highlights Highlights :: FY FY 2006 2006 -- 2007 2007 BALIC BALIC –– Growth Growth in in New New Business Business Key Key Financial Financial Highlights Highlights Growth Growth in in Assets Assets NBAP NBAP –– FY FY 2006-07
Slide 3: Financial Results 2006-07 – Top Private Sector Life Insurance Companies
Financial Results 2006-07 – Top Private Sector Life Insurance Companies New Profit /(Loss) Business * (INR Mn) (INR Mn) ICICI Prudential 52,547 (5,475) BAJAJ Allianz Life 42,698 630 ** SBI Life 25,661 38 HDFC Standard Life 16,242 (1,222) Source : IRDA New Business Report / Company Website / Newspape
Slide 4: Indian Private Life Insurance Market New Business (NB) Premium (Apr 06 to Mar 07)
Indian Private Life Insurance Market New Business (NB) Premium (Apr 06 to Mar 07) INR Bn Private Life Insurers NB Premium ICICI Prudential 52.6 Bajaj Allianz 42.7 SBI Life 25.7 HDFC Standard 16.2 Reliance Life 9.3 Bajaj Allianz ICICI Prudential Others 48.2 27% 22% 194.7 SBI Life 13% HDFC Others Reli
Slide 5: Indian Private Life Insurance Market – Annualised Premium (APE)
Indian Private Life Insurance Market – Annualised Premium (APE) FY ‘07 ICICI Prudential Bajaj Allianz 29% 20% Market share of BALIC has gone up from 17% in FY ’06 to 20 % in FY ‘07 Others SBI Life 27% Birla Sunlife HDFC 11% 5% Standard 8% FY ‘06 ICICI Prudential Bajaj Allianz 30% 17% HDFC Standard 1
Slide 6: Indian Private Life Insurance Market – New Business Policies Issued
Indian Private Life Insurance Market – New Business Policies Issued FY ‘07 BALIC is at No. 1 position ICICI Bajaj Allianz Prudential 26% in FY ’07 in terms of 25% New Business Policy issuance. SBI Life More than 2 million policies 7% issued in 06-07 FY ’06 HDFC Max New York Others Standard 7% 28% 7%
Slide 7: Key Highlights : FY 2006 - 2007
Key Highlights : FY 2006 - 2007 Highest Profit making Private sector Life Insurance Company - The Company has recorded a profit * of Rs 630** million during the financial year 2nd Highest GWP and New Business in Private Sector– The Company Recorded GWP of Rs 53,100 Million and New Business Premium o
Slide 8: Key Highlights : FY 2006 – 2007 (contd…)
Key Highlights : FY 2006 – 2007 (contd…) No1 Company In terms of No. of New Business Policies issued, amongst Private Sector. Distribution expansion – Highest Number of Offices in Private Sector - Office locations increased from 569 in 2005- 06 to 876 2006-07 - No of Agents increased from 109,000 in
Slide 9: Growth in New Business - FY 2006 - 2007
Growth in New Business - FY 2006 - 2007 32.03 35.00 4 Year CAGR ~ 181% 30.00 25.00 APE INR Bn 20.00 13.60 15.00 4.51 10.00 0.52 1.59 5.00 0.00 FY '03 FY '04 FY '05 FY '06 FY '07 Financial Year 136% growth in Annualized Premium in FY ’07 • APE- Annualized Premium = 100% Regular +10% Single Premium Ba
Slide 10: Key Financial Highlights
Key Financial Highlights FY 2007 FY 2006 Key Figures (In INR Mn) (In INR Mn) Premium Income New Business Premium 42,698 27,168 Renewal Business Premium 10,402 4,168 Investment & Other Income 3,686 656 Total Revenue 56,786 31,992 Commission 9,467 3,419 Operating Expenses 10,857 4,916 Claims and Benef
Slide 11: Investments Overview – March 2007
Investments Overview – March 2007 INR Bn Asset Under Management March-07 Shareholders 7 Trad Policyholders 9 Unit Link 52 Total 68 Shareholder & Policyholder Apr'06 - Mar'07 4 Year CAGR ~ 153% Current yield (annualised) 7.0% 68 80 60 33 AUM INR Bn 40 3 9 20 2 106% growth in Asset 0 Under Management
Slide 12: New Business Achieved Profit (NBAP) FY 2006-07
New Business Achieved Profit (NBAP) FY 2006-07 Introduction: - As Life Insurance contract is a long-term contact, the profit or loss at policy level takes many years to emerge. Keeping in view the requirement to estimate the expected profit from an insurance policy, the discounted value of all futur
Slide 13: New Business Achieved Profit (NBAP) (contd ….)
New Business Achieved Profit (NBAP) (contd ….) New Business Value INR 7,036 million Economic Assumptions Particulars Assumptions Cash/Money Market/TB 5.00% G Secs 8.00% Corporate Bond 8.50% Equities 12.00% Inflation 5.00% Risk Discount Rate 13.25% Tax rate 12.5% (plus 10% surcharge +3% education ces
Slide 14: New Business Value (NBV) (contd ….)
New Business Value (NBV) (contd …. ) Sensitivity The sensitivity of the New Business Value to Economic assumptions is given below: INR Mn Particulars Base Value +1% -1% Investment Income 7,036 7,617 6,412 Risk Discount Rate 7,036 6,275 7,906 Further Consideration - Company is experiencing acquisitio
Slide 15: BALIC - Multi-Distribution Channels
BALIC - Multi-Distribution Channels AGENCY BALIC has a large The company follows a hub & spoke model network in the market with REGIONAL AREA OFFICE BRANCH over 213,000 Licensed OFFICE (275 Offices) OFFICE agents (22 Offices) (601 Offices) BANCASSURANCE Tie-up with 2 major scheduled banks around 170
Slide 16: BALIC – Key Strategic Drivers
BALIC – Key Strategic Drivers Distribution Distribution Increasing Advisor base and building Channel Channel competent distribution channels for rural and semi rural India, enhanced focus on Direct Marketing and Group Sales Diversified Diversified product product Wide range of Risk, Investment, Savi
Slide 17: Cautionary Statements
Cautionary Statements Except for the historical information contained herein, certain statements & values are forward –looking statements & values including, but not limited to, statements & values that are predictions of or indicate future events, trends, plans or objective. Undue reliance should n
Slide 18: Thank You
Thank You Bajaj Allianz Life Insurance Co. Ltd. <25th June 2007> 18
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