BFL Loan Loss Provision and Operating Expenses
BAGIC's - Summary on COVID-19
BBAJAJ Allianz
☐ Regional lockdowns imposed due to COVID-19 resulted in marginally lower growth for BAGIC in
Q1 FY22 (9.1% (ex. Crop 11.1%) vs Industry # growth of 11.1%)
Key business segments grew better than the market
Motor: maintains strong growth in 2W & 4W segments but Commercial vehicles (CV) still
stressed on grow th
BAGIC continues to do well on Commercial lines (Fire, Engineering & Liability), despite IIB rate
hike effect getting based out from previous quarter i.e. Q4 FY21
Retail health growth was strong
On the claims front, the experience is severe than the Q1 FY21
Benefit from lower Motor OD claims frequency was relatively lower when compared with Q1
FY21; though frequency is still below pre-COVID levels
■ Though the severity of COVID-19 claims was lower than the peak severity observed in FY21,
frequency of COVID claims increased as seen from the fact that 82% of total COVID claims of FY21
already booked during Q1 FY22; adversely impacted the overall loss ratio for Q1 FY22 by 14.8%
Motor TP claims are still not being settled at the same pace as courts are still not operating at
full capacity
The Company continues to be well capitalized with a Solvency at 340% as against minimum
solvency of 150%
BAGIC has grown faster than the market in key business lines and delivered
underwriting profits in most difficult times
# Industry growth excluding specialised insurers and Standalone Health Insurers
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