Niva Bupa Health

Niva Bupa demonstrated robust financial performance in FY25, reporting a 32% YoY growth in Gross Written Premium (GWP) to ₹7,406 crores on a like-to-like basis. This growth was broad-based across retail and group segments. Profitability saw a significant uplift, with IFRS Profit After Tax (PAT) growing 91% to ₹203.3 crores. The company's retail market share also expanded from 9.1% in FY24 to 9.4% in FY25, indicating market outperformance.

Despite a reported combined ratio of 101.2% due to the '1/N' accounting change, the company's underlying performance was strong. On a comparable basis, the combined ratio improved by a significant 270 basis points to 96.1%. This was driven by a 190 bps improvement in the expense ratio (to 37.4%) and an 80 bps improvement in the loss ratio. Management expressed high confidence in meeting the regulatory expense of management norm of 35.5% in FY26.

A key theme was the management of medical inflation. The company reported that its average claim size grew by 5% in FY25, a figure notably lower than the double-digit inflation perceived in the industry. Management attributed this to a data-driven strategy for provider management, including targeted negotiations with its Preferred Provider Network (PPN) of nearly 600 hospitals, analytics-driven billing reviews, and proactive case management to ensure appropriate treatment protocols and duration of stay.

The company continues to focus on strategic initiatives to drive future growth. During the last quarter, it launched a new product called 'Rise', targeting the 'Missing Middle'—the large, underserved middle and lower-middle-class population. On the technology front, Niva Bupa is seeing results from its digital focus, with the auto-adjudication rate on claims improving to 28.5% on a full-year basis. Customer engagement through its app remains high, with over 11 million downloads and more than half a million monthly active users.

The business mix for FY25 comprised 65.5% from retail and the balance from group, PA, and travel. The group business share increased slightly due to the acquisition of two large corporate accounts. The IFRS loss ratio for the retail segment was 66%, a 100 bps increase from FY24, while the group loss ratio stood at 58.2%, a 50 bps increase. The company's multi-year policy proportion is around 20% of the retail book.

Niva Bupa maintains a strong balance sheet with a healthy solvency ratio of 3.03x, more than double the regulatory requirement of 1.50x. Assets Under Management (AUM) grew to ₹8,175 crores, generating an investment yield of 7.4% for the year. The investment portfolio is conservative, with management confirming that it is almost entirely composed of debt instruments.