Profits of Bajaj Finserv Limited has almost doubled since previous year and a major contributor to this is the life insurance business of Bajaj Allianz Life.
Bajaj Allianz Life Insurance Company is a joint venture between Allianz SE and Bajaj Finserv with product offerings like term plans, endowment plans, money back plans, unit-linked plans (Ulips), pension plans etc. The company’s earnings before interest and tax (EBIT) have nearly doubled and their gross written premiums (GWP) have fallen by 16%.
This has come at a time when most life insurance companies have been struggling due to the introduction of new regulatory norms in 2010.
Sanjiv Bajaj, MD of Bajaj Finserv said that the company has been choosy in chasing new business opportunities. This could be because of the fact that its renewal business accounts for nearly two-thirds of its life insurance business. The company’s renewal business fell only by 12% as compared to 22% fall in its new premium business.
Their general insurance business however has been a letdown as the EBIT has dropped by almost two-third from the previous year.
