Bajaj Finserv on Friday reported an 18% year-on-year increase in consolidated net profit, to Rs 6,297 crore for the June quarter. Total income rose by 19% to Rs 42,037 crore. The company, which serves as the holding entity for the Bajaj Group’s life and general insurance companies, has announced its entry into the reinsurance business.
Sanjiv Bajaj, the chairman and managing director of Bajaj Finserv, said during the company’s annual general meeting that the board has approved the setting up of a new subsidiary focused on reinsurance. Bajaj Finserv is also expanding its offerings by entering alternative asset classes through its subsidiary, Bajaj Alternate Investment Management. The company has received regulatory approvals for a portfolio management service (PMS), a real estate fund, and a private equity fund, all of which will commence operations soon.
Lending Surge
The profits for Bajaj Finserv were largely driven by its lending subsidiary, Bajaj Finance, which reported a 28% increase in profit to Rs 6,081 crore. This growth was fueled by a 20% rise in new loans and a reduction in loan losses. The Assets Under Management (AUM) for Bajaj Finance was Rs 5,46,944 crore as of June 30, 2026. The company increased its customer base by 5.10 million and issued 16.13 million new loans in the June quarter. Additionally, the housing finance subsidiary, Bajaj Housing Finance, saw a 23% rise in net profit to Rs 715 crore.
On the other hand, both the general and life insurance sectors reported declines in profits. Bajaj General Insurance reported a 27.5% decrease in net profit to Rs 478 crore, due to lower realised gains, an increase in the claims ratio, and underwriting losses. Bajaj Life Insurance’s net profit dropped by 70.2% to Rs 51 crore, attributed to reduced capital gains, macroeconomic factors, and the absence of GST credit.
Insurance Segment Performance
Bajaj General Insurance recorded an 11% growth in gross written premiums to Rs 5,789 crore. Excluding bulky, tender-driven crop and government health business, the growth stood at 10%. The net earned premium for the quarter increased by 20% to Rs 2,669 crore. The claim ratio was 74.3%, and the combined ratio for Q1 FY27 was 104.7%, compared to 103.6% in Q1 FY26, due to pricing pressure in the fire segment. Investment and other net income for Q1 FY27 fell by 23% to Rs 768 crore, and profits from the sale of investments declined by Rs 250 crore. As of June 30, 2026, the General Insurance AUM was slightly lower at Rs 34,898 crore.
Bajaj Life reported an 87% growth in new business to Rs 271 crore. The new business premium for the June quarter increased by 59% to Rs 3,678 crore. The retail weighted received premium rose by 17% to Rs 1,474 crore, while new business for group protection surged by 95% to Rs 1,366 crore, and new business for group funds rose 159% to Rs 570 crore. Renewal premiums for the quarter increased by 18% to Rs 3,721 crore, leading to a 35% rise in gross written premium to Rs 7,399 crore. The AUM for Bajaj Life grew by 10% to Rs 143,744 crore.
The emerging businesses, which include Bajaj Finserv Health, Bajaj Finserv Direct, Bajaj Asset Management, and Bajaj Alternate Investment Management, reported losses of Rs 130 crore.