Niva Bupa Health

The central theme of the call was the reduction of GST on health insurance from 18% to 0%, which management termed an "incredible win for the industry." Niva Bupa has fully passed on this benefit to customers and the associated commission impact to distributors. This strategy yielded immediate, dramatic results, with retail business growing over 50% in October, a historically slow month. Furthermore, the ticket size for new retail business in October jumped by 15% compared to H1, indicating customers are using the savings to buy more adequate cover.

Niva Bupa reported robust financial performance for H1 FY26. Gross Written Premium (GWP) grew 23% YoY on a like-to-like basis to ₹3,983 crores. Profit After Tax under IFRS more than doubled, rising to ₹132 crores from ₹60 crores in the same period last year. The IFRS Combined Ratio improved by 105 basis points to 103.1%, driven by a 2.3% reduction in the expense ratio, which more than offset a 1.2% increase in the overall loss ratio.

The retail segment was the primary growth engine, expanding 28% YoY in H1. The retail loss ratio remained stable at 68.1% on an IFRS basis. In contrast, the group business grew by a more moderate 13%, with management citing a high base from the previous year and a selective underwriting approach. The group loss ratio increased from 56% in H1 FY25 to 60.9% in H1 FY26, attributed to the mix of large corporate clients onboarded.

The company demonstrated improved operational leverage, with the Expense of Management (EOM) ratio falling to 36.3% from 40% YoY. While this was 50 bps above the H1 allowable limit, management is confident of meeting the full-year regulatory target. The company is also investing heavily for future growth, having increased its distribution headcount by over 1,000, established an AI lab, and launched a new microservices-based core system to enhance product agility and customer service.

Customer metrics remained strong, with a claims settlement ratio of 95.2% in Q2 and an improved weighted average NPS of 57 across 35 touchpoints. The company's Preferred Provider Network (PPN) strategy is gaining traction, with about 17% of claims in cities with PPN presence being routed through these hospitals. Management noted that incidence rates and average claim sizes have remained stable, contributing to a predictable claims environment.