An employee checks documents (Photographer: Balint Porneczi/Bloomberg)

No IPO In Offing For Bajaj Allianz General, Life Insurance Companies

At a time when several insurance majors are turning to the capital market, Bajaj Finserv has made it clear that its two insurance companies are not looking at an initial public offer soon.

Bajaj Finserv is the holding company for Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance, besides Bajaj Finance Ltd.

“There is no reason for an IPO in the short-term,” Bajaj Finserv Managing Director Sanjiv Bajaj told newswire PTI, on the sidelines of a financial conclave organised by the Bengal Chamber of Commerce in Kolkata.

He said both life and general insurance companies were well capitalised and the promoters remained committed.

Bajaj Allianz Life is among the most capital-efficient private insurers with a solvency ratio of 608 percent as on September 30, Bajaj said.

In addition, the insurance firm has a fund of Rs 2,348 crore beyond the solvency margin, which forms a part of shareholders' investments, he said. Bajaj Allianz Life posted a net profit of Rs 836 crore in FY17.

Solvency ratio in case of Bajaj Allianz General Insurance is 288 percent as against the regulatory requirement of 150 percent, as of September 30, Bajaj said. The firm’s bottom line for FY17 stood at Rs 727.8 crore.

A number of insurance companies have launched initial public offering in the past few months, including SBI Life Insurance, General Insurance Corp of India and New India Assurance.

HDFC Standard Life Insurance's IPO is slated from November 7.

To a separate question on the Goods and Services Tax, Bajaj said benefits from the new tax regime would be seen in the next three to four quarters.