Consolidation of the company total income for the quarter fell 1.7% year-on-year to Rs 13,949 crore. “In these challenging times, our businesses focus on Risk management with a calibrated approach to growth,” the company said in an exchange filing.
The company’s bottom line for the quarter was also hit by a sharp decline in market unrealized investment returns during the quarter. Unrealized market ticker return on investment fell sharply to 25 crore in the June quarter from 330 crore in the previous quarter.
The company’s life insurance business had a solid quarter despite challenges posed by local closures. New business premiums for the quarter increased 75% year-on-year to Rs 1,296 crore, while renewal premiums increased 27%.
However, an increase in claims related to Covid-19 deaths caused the business’s net profit to drop to Rs 84 from Rs 130 in the previous quarter.
The insurance business as a whole had a rough quarter as net premiums were largely unchanged at Rs 1,815 crore compared with Rs 1,818 crore in the corresponding quarter a year ago. Business claims rate rose to 75.9% in the quarter from 68.1% a year ago due to Covid-related claims.
Profit after tax of the insurance business as a whole also fell to 362 crore from 395 crore in the previous quarter.
On Tuesday, shares of Bajaj Finserv ended 0.9% lower at Rs 12,613 on the National Stock Exchange.
https://economictimes.indiatimes.com/markets/stocks/earnings/bajaj-finserv-q1-results-pat-falls-31-yoy-to-rs-833-crore-hit-by-covid-2-0/articleshow/84609101.cms | Bajaj Finserv Q1 results: PAT falls 31% YoY to Rs 833 crore hit by Covid 2.0