NIVABUPA - Niva Bupa Health

📊 NSE: NIVABUPA 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 10:34

💰 Financial Performance

Revenue Growth by Segment

Gross Written Premium (GWP) grew by 20.59% YoY to reach INR 6,762.23 Cr in FY25. The bancassurance channel specifically grew by 24% YoY, contributing INR 1,359 Cr in premiums. Growth without the '1/N' accounting impact was reported at 32.1% for FY25.

Geographic Revenue Split

As of 6MFY24, revenue was distributed across Maharashtra (15.6%), Uttar Pradesh (10.9%), Delhi (9.5%), Karnataka (9.3%), Haryana (7.6%), Telangana (6.4%), and Gujarat (5.4%).

Profitability Margins

Profit After Tax (PAT) surged 160.8% YoY to INR 213.52 Cr in FY25 from INR 81.85 Cr in FY24. The Return on Net Worth (RONW) improved significantly from 3.99% to 6.98% during the same period. The Net Earnings Ratio stood at 3.98% in FY25 compared to 1.85% in FY24.

EBITDA Margin

Operating Profit Ratio was 3.68% in FY25, a decrease from 4.93% in FY24, primarily due to the transition to 1/n basis premium recognition. The combined operating ratio stood at 105.10% in FY25, slightly improved from 105.15% in FY24.

Capital Expenditure

The company significantly expanded its capital base by raising INR 800 Cr from investors including Temasek and Motilal Oswal, followed by an IPO that brought the paid-up share capital to INR 1,827.03 Cr as of March 31, 2025.

Credit Rating & Borrowing

CARE Ratings assigned a 'CARE A+; Stable' rating to the company's INR 250 Cr subordinate debt, upgraded from 'CARE A; Stable' due to a substantial increase in the capital base and a solvency ratio of 2.5x.

⚙️ Operational Drivers

Raw Materials

As an insurance provider, primary 'input' costs are Claims Incurred (Net) at INR 2,996.52 Cr (44.3% of GWP) and Commission Paid (Net) at INR 1,064.57 Cr (15.7% of GWP).

Import Sources

Not applicable for insurance services; sourcing relates to domestic distribution and healthcare provider networks across India.

Key Suppliers

Not applicable; the company partners with healthcare providers and distributors. It added 7 new bancassurance partners in FY25 to expand its distribution reach.

Capacity Expansion

The company expanded its physical footprint to 201 offices as of September 2023, up from 161 offices in March 2022. The investment book expanded to INR 8,175 Cr in FY25 from INR 5,458 Cr in FY24.

Raw Material Costs

Claims incurred (Net) rose 33% YoY to INR 2,996.52 Cr in FY25. The loss ratio increased to 61.2% in FY25 from 59.0% in FY24, impacting the combined ratio.

Manufacturing Efficiency

The Expense of Management (EOM) to Net Written Premium ratio was 49.39% in FY25. For H1 FY26, the EOM ratio was 36.3%, slightly above the regulatory limit of 35.8%.

Logistics & Distribution

Distribution is multi-channel; commission expenses increased to INR 1,064.57 Cr in FY25 from INR 748.18 Cr in FY24 to support a 20.59% growth in GWP.

📈 Strategic Growth

Expected Growth Rate

20.59%

Growth Strategy

Growth is driven by a multi-channel distribution strategy with a heavy emphasis on digital sales and bancassurance. The company added 7 new bank partners and is leveraging its association with Bupa Singapore Holdings (56% stake) for brand and strategic oversight.

Products & Services

Health insurance policies, including retail health, group health, and specialized health insurance products.

Brand Portfolio

Niva Bupa (formerly Max Bupa).

New Products/Services

Not disclosed in specific percentages, but the company focuses on diversified health insurance products across retail and group segments.

Market Expansion

Targeting increased market share in the Standalone Health Insurance (SAHI) segment, which improved to 17.59% in FY25 from 16.93% in FY24.

Market Share & Ranking

Overall health insurance market share increased to 5.31% in FY25 from 4.81% in FY24. Ranked as a leading Standalone Health Insurer (SAHI).

Strategic Alliances

Subsidiary of Bupa Singapore Holdings Pte. Limited (56% stake). Strategic investors include Temasek, Motilal Oswal, SBI Life, and Paragon.

🌍 External Factors

Industry Trends

The health insurance industry grew at 9.07% in FY25, while NBHI outpaced this at 20.59%. Trends include a shift toward digital distribution and regulatory shifts like the 1/n accounting method.

Competitive Landscape

Competes with other SAHIs (Standalone Health Insurers) and general insurance companies. NBHI holds a 17.59% share among SAHIs.

Competitive Moat

Moat is built on strong parentage (Bupa), a diversified distribution network (201 offices + bancassurance), and a high solvency ratio (2.5x) which allows for aggressive growth compared to peers.

Macro Economic Sensitivity

Highly sensitive to healthcare inflation and regulatory changes by IRDAI. Investment income (INR 479.83 Cr) is sensitive to interest rate cycles.

Consumer Behavior

Increasing demand for retail health insurance and digital-first purchase journeys.

Geopolitical Risks

Low direct impact as a domestic health insurer, though global parentage (Bupa UK) provides strategic stability.

⚖️ Regulatory & Governance

Industry Regulations

Subject to IRDAI regulations, including the 1/n accounting method for GWP and a 35% Expense of Management (EOM) limit. The company is currently at 36.3% EOM and aims to align by FY26 end.

Environmental Compliance

Exposure to environmental risks is low; the company has internal risk assessment mechanisms for ESG.

Taxation Policy Impact

Not disclosed as a specific percentage, but PAT was reported after tax provisions at INR 213.52 Cr.

Legal Contingencies

The company received a letter from the Insurance Regulatory and Development Authority of India (IRDAI) on November 12, 2025, regarding regulatory matters; specific case values were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the loss ratio, which rose to 61.2% in FY25. Regulatory compliance regarding EOM limits (currently 50 bps above limit) poses a compliance risk.