Business Overview

Performance Overview: FY2021

  • New business growth and market ranking
  • In terms of Individual Rated New Business (IRNB) premium, the Company’s grew by 28% vs. industry growth of 3% and private industry growth of 8%. The Company maintained its rank of 6th for FY2021. In terms of new business premiums, the Company registered a new business growth of 22% for FY2021 vs. industry growth of 8% and private industry growth of
    16 %. In terms of new business premium, the Company maintained it’s ranked at 5th position.

    Individual Rated New Business
    (₹ In Crore)

    Group protection premium
    (₹ In Crore)

  • Renewal premium
  • With continued focus and various initiatives; renewal premium for the Company for FY2021 was ₹ 5,712 crore as compared to ₹ 4,574 crore for FY2021; growth of 25%.

    Renewal premium
    (₹ In Crore)

  • Persistency
  • Continued focus on renewal collections supported by various initiatives to improve persistency such as driving auto-payment registrations, promoting digital payments, greater distribution ownership and various other initiatives have led to 25% growth compared to previous year period.

    Note: The persistency ratios for the year ended March 31, 2021 have been calculated for the policies issued in March to February period of the relevant years. e.g.: the 13th month persistency for the current year is calculated for the policies issued from March 2019 to February 2020

  • Continual efforts in reducing number of complaints
  • Though complaints has been increased by 20% from 1,572 in FY2020 to 1,887 in FY2021, the grievance ratio (grievances per 10,000 new policies issued) reduced from 50 in FY2020 to 44 in FY2021 (reduced by 12%).

    Number of complaints

  • Profitability – Profit after Tax and New Business Value/Margin
  • The Company earned a profit after tax of ₹ 580 crore during FY2021 as compared to the profit of ₹ 450 crore for FY2020.
    The segmental performance for the Company is summarised below:

    The new business value/margin, which is the net present value of future profits for the Shareholders’ from the new business generated during the year, is also reported by the Company annually. New business value/margin reflects the management’s view of the profitability of a product over its life measured at the point of sale. The gross new business value (unaudited and based on methodology prescribed under Actuarial Practice Standard 10 issued by the Actuarial Society of India) was ₹ 684 crore for FY2021 compared to ₹ 436 crore for FY2020, growth of 57%. The implied gross new business margin was 23% in FY2021 compared to 19% in FY2020. Post overruns, the Company’s net new business value was at ₹ 361 crore in FY2021 as against ₹ 227 crore for FY2020, growth of 59%.


  • Market Consistent Embedded value
  • The Company has also been disclosing the Market Consistent Embedded Value (MCEV) of the Company, which is a measure of the present value of Shareholders’ interests in the earnings distributable from the assets allocated to the business after sufficient allowance for the aggregate risks in the business. MCEV reflects the value of in-force business along with the Shareholders’ net-worth. MCEV is not a reflection of the market value of Company. MCEV computed in line with the Actuarial Practice Standard 10 issued by the Institute of Actuaries of India. The MCEV of the Company at FY2021 stood at ₹ 15,534 crore up from ₹ 13,438 crore at FY2020.

  • Strong Assets Under Management (AUM) and Solvency
  • The Company remains well capitalized and maintained very high levels of solvency throughout the year. The solvency ratio as at Mar 31, 2021 stood at 666% (March 31, 2020: 745%) which is significantly in excess of the regulatory required limit of 150%.

    AUM (₹ In Crore)

    Solvency (%)

    The AUM for the Company (including unclaimed funds) grew by 32% in FY2021 to end at ₹ 73,773 crore at Mar 31, 2021 increased from ₹ 56,085 crore at Mar 31, 2020.

  • Brand performance
    • The Bajaj Allianz Life was featured third time in a row amongst the Top 75 Most Valuable Indian Brands 2020 list, as per Kantar BrandZ Top 75 Most Valuable Indian Brands report. The Company’s Brand Power also increased by 24%, from 6.4% in 2019 to 7.8% in 2020
    • The Company ranked #2 amongst the most trusted private life insurer brands after SBI Life, as per ET Nielsen Brand Equity Most Trusted Brands 2020
    • Bajaj Allianz Life bagged Gold #SAMMIE for the ‘Best Social Media Brand’ in BFSI (Insurance category) at the Best Social Media Brands Award 2020
    • The Company onboarded Ayushmann Khurrana, Bollywood actor as its brand ambassador, and conducted mass media campaigns with him on Bajaj Allianz Life Smart Protect Goal (the new term plan) and the revolutionary tech service launch Smart Assist
    • Over 40 customer-facing webinars organized during the year 2020-21 on importance of financial planning, investment advisory, Tax Planning & Health & Fitness. These webinars engaged more than 45,000 individuals
    • Bajaj Allianz Life ranked #2 amongst private life insurers in PR Share of Voice in FY2020-21 This ranking is done by Eikona TAM Media, an independent ranking agency for PR
    • ‘Best Fraud Intelligence’ award at the 5th Annual Insurance India Summit & Awards 2020 for fraud prevention and mitigation initiatives
    • ‘DX Gamechanger’ award at IDC Digital Transformation Awards-India for i-SERV video calling service
    • ‘Most Innovative Best Practice in Customer Experience’ at the CII DX Summit & Awards 2020 for the first-of-its-kind revolutionary technology service Smart Assist
    • ‘Best Payments and Collection Solution’ award at The Asset Triple A Treasury, Trade, SSC and Risk Management Awards 2020
    • Red Hat APAC Innovation Awards 2020 for Digital Transformation Hybrid Cloud Infrastructure
    • Won the ‘Best Digital Customer Experience Initiative’ award for WhatsApp servicing, at the Customer FEST Leadership Awards 2021
    • Won the ‘Best Use of Innovation to enhance Customer Experience’ at the Customer FEST Leadership Awards 2021 for Smart Assist, a first-of-its-kind co-browsing service in the insurance industry
  • Internal control and its adequacy
  • The Company has in place adequate systems of internal control commensurate with its size and nature of business.
    This Internal Control architecture has been summarized below:

    Board oversees the internal control governance structure. Head of Departments (HOD) ensure control activities are performed at all levels within their functions, at various stages within business processes, and over the technology environment.

    Observations of statutory, internal and concurrent auditors are presented before the audit committee for corrective and preventive actions. A pre audit committee is in place to go through, in great detail, each aspect impacting the control environment. The Audit Committee deliberates upon auditors’ views on the adequacy of internal control systems and monitors the progress of open items through action taken report. The risk management process identifies risks surrounding the Company’s activities. Risk management is integrated into the Company’s culture by way of an effective policy and a program led by the most senior management.

    Departmental policies and procedures are an effective way to maintain a strong system of internal controls. All the departments have documented policies and procedures of critical processes in their respective functions and ensure operating level controls through clear delegation of authority and segregation of duties.

    Further, financial reporting control framework reasonably assures that the Company’s financial statements are reliable and prepared in compliance with the accounting standards as prescribed in the Companies Act, 2013, in accordance with the provisions of the Insurance Act, 1938 and the practices prevailing in the insurance industry in India.

    Investment operations are subject to daily concurrent audit certification and an Investment Risk Management Systems (IRMS) audit once in two years. Any significant findings in the concurrent audit or IRMS audit are presented to the Audit Committee. The financials prepared are audited by joint statutory auditors and are reviewed by Audit Committee. They are also submitted to Insurance Regulatory Development Authority of India (IRDAI). The Company has a Board approved fraud risk management policy.

    The Board Audit Committee oversees the compliance framework of the Company. The Company has formulated various internal policies/ procedures and an employee code of conduct, which govern the day-today activities to ensure compliance. The compliance function disseminates the information regarding the relevant laws, regulations and circulars related to insurance and anti-money laundering to various functions. It also serves as a reference point for the staff of various functions for seeking clarifications on applicable laws, regulations and circulars issued by the regulatory authorities.

    As required under the Companies Act 2013, Company has implemented Internal Financial Control (IFC) considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

    Various other policies and committees support a robust internal control structure which include the Whistle Blower policy, Ethics Committee and Claims Review Committee.

  • Risk exposure due to Covid-19 and strategy adopted to mitigate the same
    • For employee’s safety and perspective several measures continue in practice in Company premises since March 2020

    • Corona Advisory and SOP for Re-opening of offices, Rostering Guidelines, All India Covid-19 hospitals information etc (Digital Awareness), 50% agile QR based online rostering continue with effect from January 2021 etc.
    • Employee awareness on Covid-19 and safety measures in employee connect sessions – E Townhall by Senior Management, decentralised E Townhalls, Regional Business Conventions etc.
    • Exclusive Leadership Connect with all India employees in countering the Pandemic and address all employees queries
    • Strict adherence to safety measures, wear mask, check aarogyasetu, maintain social distance, sanitization supply while entering office. Facilities like canteen, creche, indoor sports arena remain closed
    • Daily monitoring of employee wellbeing, check status of Covid-19 positive cases within Company, regular fumigation of offices, sensitize employees, their colleagues in touch in same location
    • Provide care benefits to employees who are Covid-19 positive (home isolation facility through portea, additional Mediclaim cover of 1 lac, additional leave sanction on case to case)
    • Provide care benefits for all employees (stress buster policy, WFH for working mothers, wellbeing solutions on physical, mental & emotional wellbeing, conducted webinars on Covid-19 and how to handle the pandemic)
    • For more details pertaining to risk, please refer Management Report Section 8 for “Overall risk exposure and strategy adopted to mitigate the same”.

  • Material developments in Human Resources
  • As the future of work is being continuously redefined and Human Resources department in the Company continues to be positioned as a culture and change catalyst. The various roles as part of the culture and change anchor, the Company HR plays the role of a digital partner, talent driver and strategic advisor contributing to the overall business agenda.

    Few of the key interventions are listed below:

    • LEAD mindset and behaviours – Launch of our organization DNA, integrated with Bajaj Group leadership mindsets, towards culture building in the Company
    • Internal Talent Mobility – Launch of UDAAN , for providing career opportunities to grow
    • Continuous employee listening – Launch of quarterly employee survey VIBES for real time, frequent employee listening and actions, agile Covid-19 interventions for employee etc.
    • Engaging leadership connects – E-Town halls, Regional Business Councils convened by Senior Management towards driving Company focus areas as set in the long range plans and new innovations within the Company
    • LEAD R&R architecture – launch of R&R, integrated with LEAD mindsets and behaviours, quarterly customised R&R by Senior Management, regular conduct of UTSAV R&R celebrations as one team at functional level
    • Green Onboarding – Digital employee onboarding through HR tech enablement for seamless experience
    • Employee Wellness – Launched Digital Wellbeing Coach towards holistic wellbeing of employees and their family through solutions related to physical, mental and emotional wellbeing. Including consultation with external health coach and external certified counsellors
    • Rejuvenate – Handhold low performers in sales roles by HR and Business leaders and guide them to bounce back in performance through coaching and training
    • Peer Learning – Continue Peer Learning & sharing through Knowledge Café
    • Predict Index assessment – launched towards interview & selection of quality talent focus