Table of content
Niva Bupa Health insurance Introduction
Niva Bupa Health Insurance Company Limited is one of India’s largest and fastest-growing standalone health insurers. Founded in 2008 as a joint venture between the Bupa Group and Fettle Tone LLP, Niva Bupa offers a comprehensive range of health insurance solutions. The company is headquartered in New Delhi and is regulated by the Insurance Regulatory and Development Authority of India (IRDAI)
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Brief About Niva Bupa Health insurance
History of Niva Bupa Health insurance
Company was originally incorporated as ‘Max Bupa Health Insurance Limited’ at New Delhi, Delhi as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated September 5, 2008, issued by the Assistant Registrar of Companies, National Capital Territory of Delhi and Haryana and was granted its certificate for commencement of business on December 23, 2008 by the Deputy Registrar of Companies, National Capital Territory of Delhi and Haryana.
Thereafter, the name of our Company was changed to ‘Max Bupa Health Insurance Company Limited’, upon a request by the IRDAI, pursuant to a fresh certificate of incorporation dated July 30, 2009 issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Our Company was required to discontinue using the “Max” brand in our name, pursuant to Max India Limited ceasing to hold Equity Shares in our Company. Hence, the name of our Company was changed to ‘Niva Bupa Health Insurance Company Limited’ pursuant to a fresh certificate of incorporation dated July 5, 2021 issued by the Registrar of Companies – Delhi.
Summary of the business of Niva Bupa Health insurance
Niva Bupa Health insurance is a standalone health insurer (“SAHI”) strategically focused on the retail health market. According to the Redseer Report, one of India’s largest and fastest growing SAHIs based on overall health insurance gross direct premium income (“GDPI”) of ₹54,944.28 million in Fiscal 2024. Growth in overall health GDPI from Fiscals 2022 to 2024 of 41.37% is one of the highest growths among SAHIs, and is almost double of the industry’s average, which according to the Redseer Report, increased by 21.42% from Fiscals 2022 to 2024. We also offer personal accident and travel insurance products to our customers.
Verticals of Niva Bupa Health insurance
- Health Insurance
- Personal Accident Insurance
- Travel Insurance
Revenue breakup of Niva Bupa Health insurance
Product wise break-up
(₹ in millions)
| Segments | 2024 | 2023 | 2022 | |||
| (₹) | (% of total GWP) | (₹) | (% of total GWP) | (₹) | (% of total GWP) | |
| Health | 54,944.28 | 97.98% | 39,873.59 | 97.90% | 27,490.35 | 97.83% |
| Personal Accident | 926.76 | 1.65% | 800.41 | 1.97% | 607.57 | 2.16% |
| Travel | 204.7 | 0.37% | 56.31 | 0.14% | 1.79 | 0.01% |
| Total Gross Written Premium or GWP | 56,075.74 | 100.00% | 40,730.31 | 100.00% | 28,099.71 | 100.00% |
| June 30, 2024 | 2024 | 2023 | 2022 | |||||
| (₹) | (% of total GWP) | (₹) | (% of total GWP) | (₹) | (% of total GWP) | (₹) | (% of total GWP) | |
| Retail | 10,169.12 | 69.45% | 39,349.50 | 70.17% | 30,492.85 | 74.87% | 22,136.43 | 78.78% |
| Group | 4,472.64 | 30.55% | 16,726.2 4 | 29.83% | 10,237.45 | 25.13% | 5,963.28 | 21.22% |
Revenue contribution from Geography presence
| 2024 | 2023 | 2022 | ||||
| (₹) | (% of total GWP) | (₹) | (% of total GWP) | (₹) | (% of total GWP) | |
| Direct Sales | 7,329.77 | 13.07% | 6,388.06 | 15.68% | 5,276.79 | 18.78% |
| Officers/E mployees | 7,239.35 | 12.91% | 6,336.65 | 15.56% | 5,112.17 | 18.19% |
| Online (through Company website) | 90.41 | 0.16% | 51.41 | 0.13% | 164.62 | 0.59% |
| Individual Agents | 17,985.1 6 | 32.07% | 14,670.4 6 | 36.02% | 10,478.6 3 | 37.29% |
| Corporate Agents | 15,281.0 0 | 27.25% | 10,528.6 5 | 25.85% | 7,704.04 | 27.42% |
| Banks | 10,987.5 7 | 19.59% | 7,146.95 | 17.55% | 5,224.27 | 18.59% |
| Others | 4,293.43 | 7.66% | 3,381.70 | 8.30% | 2,479.76 | 8.82% |
| Brokers | 15,164.9 4 | 27.04% | 8,865.71 | 21.77% | 3,754.07 | 13.36% |
| Insurance Marketing Firms | 137.63 | 0.25% | 93.66 | 0.23% | 54.76 | 0.19% |
| Point of Sales Persons | 116.39 | 0.21% | 143.09 | 0.35% | 62.69 | 0.22% |
| Web Aggregators | 60.86 | 0.11% | 40.68 | 0.10% | 768.73 | 2.74% |
Industry Outlook
Standalone Health Insurers (SAHI) landscape in India
SAHI players are driving Retail health insurance
In India, health insurance providers can be broadly categorized into three main types: Private Insurers, Public Insurers, and Standalone Health Insurers (“SAHI”). Public insurers include government-owned health and non-life insurers, Private insurers are privately-owned entities offering health and non-life insurance services, while SAHIs are specialized entities focused on health insurance (incl. travel and personal accident) coverage only. As of August 31, 2024 there are four IRDAI-recognized public insurers excluding specialized insurers, twenty-one private insurers and seven IRDAI-recognized SAHI companies in India:
- Aditya Birla Health Insurance
- Care Health Insurance
- Manipal Cigna Health Insurance
- Niva Bupa Health Insurance
- Star Health & Allied Insurance
- Narayana Health Insurance
- Galaxy Health Insurance
These SAHIs, Private and Public insurers form the competitive landscape of the health insurance industry.
The competitive landscape of health insurance in India is based on several factors including brand recognition and the reputation of the provider of products and services, customer satisfaction, underwriting and pricing of risks, distribution network and access to services and service personnel, pricing and quality of services, product design and diversification, financial strength, high-quality and stable professional team and information technology capabilities.
Several factors are contributing to the high growth of SAHIs in Retail health insurance
- Strong customer focus
- SAHIs, due to their exclusive focus on health, deliver superior customer service with their expertise in health-related risk assessment, agency-channel focus through which customers are supported in onboarding and during claims, extensive hospital networks, and >99% claims paid within 3 months.
- Rising number of Individual Agents
- Retail health insurance segment is largely driven by Individual Agents, contributing ~55% of Retail health insurance GDPI in FY23. SAHIs have consistently held the largest number of Individual Agents from FY18 to FY24, with their strength growing at a CAGR of 21.5%. In comparison, the number of Individual Agents grew only at a CAGR of 10.7% and 4.2% for Private and Public insurers respectively during the same period.
- Fastest expanding hospital network
- SAHIs have witnessed the highest increase in their network of hospitals through direct contracts as well as Third-Party Administrators (“TPA”) during FY21-23 period. For SAHIs, the network of hospitals grew at 71% versus 63% for Private insurers. This growth is also driven by a significant increase in the number of hospitals onboarded by each TPA. It signifies enhanced accessibility of healthcare services for the policyholders. It also offers policyholders a greater choice of healthcare providers, allowing them to select hospitals based on preferences, proximity, specialties, and quality of care.
- Higher product launches
- SAHIs have demonstrated innovation capabilities by introducing, on average, a higher number of health insurance products compared to Private insurers. This proactive approach shows their agility and adaptability in a rapidly evolving market. SAHI players have been continuously expanding their product portfolio to cater to a wide spectrum of healthcare needs, ranging from basic coverage to comprehensive plans, while also focusing on innovation by offering flexible coverage options and value-added services.
- Faster claim settlement
- The average claim settlement time (inclusive of cashless and reimbursement claims) for SAHIs is lower than Private and Public insurers. The average time taken by SAHIs to settle claims is 9 days versus 13 days for Private insurers in FY23 and more than 30 days for Public insurers. The ecosystem of increasing hospital network with cashless claim processing, growing number of TPAs, and high reliance on the Individual Agents who personally support the customers claim process, enable SAHIs to require fewer days for claim settlement. This enables higher customer retention through better claims experience.
SAHIs have higher underwriting balance ratio than Private and Public insurers in FY24
SAHIs improved their underwriting balance ratio from (22)% in FY22 to (4)% to FY24. This is due to their focus on Retail insurance which typically has lower underwriting risk compared to Group insurance. A positive underwriting balance ratio suggests the profitability of an insurer’s underwriting practices, meaning that the premiums collected from policyholders exceed the claims and expenses incurred in underwriting. Therefore, SAHIs having a high underwriting balance ratio indicates their ability to effectively manage risks and generate profits in the health insurance sector.
SAHIs demonstrate higher renewals than Private insurers
Retail customers typically remain loyal to a single insurer over a lifetime. Therefore, high renewal rates are crucial for long-term success and serve as a key indicator of quality of service. High renewal rates also keep the cost of customer acquisition low. Agents play a pivotal role here by maintaining personal connections with customers. This is visible in the higher renewal rates of SAHIs in comparison to Private insurers as they are more reliant on Individual Agents for premium accretion.
SAHIs are expected to show high growth over next 5 years
SAHIs are expected to reach ~3-3.5x of their current GDPI by FY29
SAHIs GDPI has already quadrupled in last 6 years and is expected to reach INR 0.7-0.9 Tn (USD 8.7-10.6 Bn) growing at a CAGR of 25-30% from FY24 to FY29. Their focus on health products allows for innovation and a wider range of offerings. Additionally, increased focus on tier II+ markets (cities/areas with population below 2 million), tie-ups with new Banca partners and stronger emphasis on digital sales will further add to the growth.
Contribution of Corporate Agents (Bancassurance + Others) led distribution is increasing
Over the years, SAHIs’ distribution network has been dominated by Individual Agents and Direct Sale channels. The contribution of Individual Agents has decreased from 60% in FY18 to 54% in FY24. To tap into new customer segments, SAHIs are investing on alternative channels especially Corporate Agents and Brokers. The contribution of Corporate Agents increased from 10% to 15% from FY18-24, while that of Brokers increased from 14% to 21%.
Competitive Benchmarking
We have analyzed the performance of five Standalone Health Insurers, the top four Private insurers and the top two Public Insurers by Gross Direct Premium Income (GDPI) in Retail health insurance. All these players together represent about 84.65% of the Retail health market GDPI and about 71.00% of the Overall Health GDPI for FY24.
| SAHIs | Private Insurers | Public Insurers |
| Aditya Birla Health Insurance Co. Ltd | Bajaj Allianz General Insurance Co. Ltd | National Insurance Co. Ltd |
| Care Health Insurance Ltd | HDFC Ergo General Insurance Co. Ltd | The New India Assurance Co. Ltd |
| Manipal Cigna Health Insurance Co. Ltd | ICICI Lombard General Insurance Co. Ltd | |
| Niva Bupa Health Insurance Co. Ltd | TATA AIG General Insurance Co. Ltd | |
| Star Health and Allied Insurance Co. Ltd |
Management of Niva Bupa Health insurance
Promoters & Board of Directors
- Promoters are Bupa Singapore Holdings Pte. Ltd., Bupa Investments Overseas Limited and Fettle Tone LLP.
Board of directors
| Name | Designation |
| Chandrashekhar Bhaskar Bhave | Chairman and Independent Director |
| Krishnan Ramachandran | Managing Director and Chief Executive Officer |
| Pradeep Pant | Independent Director |
| Geeta Dutta Goel | Independent Director |
| David Martin Fletcher | Non-Executive Director (Nominee of Bupa SingaporeHoldings Pte. Ltd.) |
| Divya Sehgal | Non-Executive Director (Nominee of Fettle Tone LLP) |
| Maninder Singh Juneja | Non-Executive Director (Nominee of Fettle Tone LLP) |
| Penelope Ruth Dudley | Non-Executive Director (Nominee of Bupa Singapore Holdings Pte. Ltd.) |
| Carlos Antonio Jaureguizar Ruiz Jarabo | Non-Executive Director (Nominee of Bupa Singapore Holdings Pte. Ltd.) |
Share Holding pattern of Niva Bupa Health insurance
| Category of Shareholders | % of holding |
| Bupa Singapore Holdings Pte. Ltd. | 62.19 |
| Bupa Investments Overseas Limited | N.A |
| Fettle Tone LLP | 26.8 |
| Public | 11.01 |
Ipo details of Niva Bupa Health insurance
Niva Bupa Health Insurance IPO
| Details | Information |
|---|---|
| IPO Open | November 7, 2024 |
| Ipo Close | November 11, 2024 |
| Price Band | ₹70-₹74 per share |
| Lot Size | 200 shares per lot |
| Issue Size | ₹2,200 crore (Fresh Issue: ₹800 crore, Offer for Sale: ₹1,400 crore) |
| Listing Date | November 14, 2024 |
| Minimum Investment | ₹14,800 for retail investors |
Object of the issue
| Particulars | Estimated amount (₹ in million) |
| Augmentation of capital base to maintain and strengthen solvency levels | 8,000.00 |
Financial of Niva Bupa Health insurance
Key Performance Indicators
| Particulars | June 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 | |
| Retail Health GWP | (₹ in millions) | 9,905.74 | 38,397.34 | 29,697.40 | 21,573.40 |
| Retail Health Market Share | % | 9.88 | 9.1 | 8.38 | 7.02 |
| Retail health accretion market share | % | 14.98 | 12.85 | 17.31 | 18.22 |
| Gross Direct Written Premium | (₹ in millions) | 14,641.76 | 56,075.74 | 40,730.31 | 28,099.71 |
| Gross Written Premium | (₹ in millions) | 14,641.76 | 56,075.74 | 40,730.31 | 28,099.71 |
| Net Written Premium | (₹ in millions) | 11,515.98 | 44,209.51 | 31,831.07 | 21,576.28 |
| Premiums earned (net) | (₹ in millions) | 10,180.21 | 38,112.49 | 26,627.51 | 17,525.09 |
| Assets Under Management | (₹ in millions) | 56,744.43 | 54,582.31 | 33,660.95 | 24,013.15 |
| Net Worth | (₹ in millions) | 20,317.72 | 20,495.90 | 8,311.23 | 5,076.45 |
| Retention Ratio | % | 78.65% | 78.84% | 78.15% | 76.78% |
| Claims Ratio | % | 64.03% | 59.02% | 54.05% | 62.12% |
| Expense Ratio | % | 42.05% | 39.77% | 43.20% | 45.40% |
| Combined ratio | % | 106.08% | 98.79% | 97.25% | 107.52% |
| Expense of Management to Gross Direct Premium Ratio | % | 40.72% | 39.31% | 41.23% | 42.55% |
| Return on Net Worth | % | -0.92% | 5.68% | 1.87% | -36.25% |
| Yield on total investments | % | 7.58% | 7.13% | 6.70% | 6.60% |
| Solvency Ratio | times | 2.39 | 2.55 | 1.67 | 1.72 |
| Number of active lives insured at the end of the Fiscal | # | 14.99 | 14.73 | 9.89 | 7.29 |
| Average ticket size per policy | ₹ | 30,419.06 | 28,797.48 | 26,083.91 | 22,186.45 |
| GWP per policy sold by agents | ₹ | 25,058.36 | 25,028.29 | 22,895.36 | 20,645.93 |
| Renewal Rate for Retail Health Indemnity Products (by value) | % | 90.24% | 92.15% | 89.41% | 87.97% |
| GWP contribution of new retail health indemnity policies with sum insured ≥ ₹ 1 million | % | 73.66% | 70.72% | 67.37% | 63.01% |
| Network Hospitals | # | 10,426 | 10,460 | 10,005 | 8,562 |
| % of cashless claims through Network Hospitals | % | 75.45% | 70.01% | 66.54% | 62.53% |
| Claim Settlement Ratio | % | 93.21% | 91.93% | 90.53% | 90.78% |
Profit & Loss
(₹ in millions, except otherwise stated)
| June 30, 2024 | 2024 | 2023 | 2022 | |
| Premiums earned (net) | 10,180.21 | 38,112.49 | 26,627.51 | 17,525.09 |
| Claims incurred (net) | 6,518.06 | 22,495.41 | 14,393.11 | 10,886.25 |
| Profit/(loss) after tax | -188.21 | 818.52 | 125.4 | -1,965.25 |
Cash Flow
(₹ in millions)
| Cash Flow | June 30, 2024 | 2024 | 2023 | 2022 |
| Net cash flows from operating activities | 715.58 | 8,125.25 | 5,925.11 | 3,378.18 |
| Net cash flows from investing activities | (1,167.19) | (18,815.86) | (8,293.94) | (7,231.68) |
| Net cash flows from financing activities | 36.05 | 11,100.18 | 2,799.30 | 3,737.56 |
Capital structure
(₹ in million, unless otherwise stated)
| Particulars | June 30, 2024 |
| Borrowings | 2,500.00 |
| Equity | |
| Share capital | 17,001.23 |
| Reserves and Surplus | 12,824.37 |
| Debit balance in profit and loss account | 9,507.88 |
| Total Equity | 20,317.72 |
| Total Borrowings / Total Equity | 0.12 |
SWOT ANALYSIS
- Strengths
- Strong Growth: Niva Bupa has shown impressive growth, with a Gross Written Premium (GWP) CAGR of 41.27% from FY22 to FY24.
- Comprehensive Product Range: The company offers a wide range of health insurance products for individuals, families, and groups.
- Digital Presence: Niva Bupa’s mobile app and website provide easy access to health services, enhancing customer experience.
- Experienced Management: The company benefits from a seasoned management team with extensive experience in the health insurance sector.
- Weaknesses
- High Debt Levels: Niva Bupa has significant outstanding borrowings, which can impact its financial stability.
- Dependence on Government Policies: The health insurance sector is heavily influenced by government regulations, which can affect operations.
- Seasonal Sales: Retail health insurance sales tend to grow slowly in the first half of the year, accelerating in the last quarter due to tax benefits.
- Opportunities
- Market Growth: The health insurance market in India is projected to grow significantly, driven by a growing middle class and regulatory support.
- Technological Advancements: Investing in new technologies can improve efficiency and competitiveness in the health insurance market.
- Expansion into New Segments: Niva Bupa can explore opportunities in new segments such as wellness programs and digital consultations.
- Threats
- Economic Downturns: Economic instability can affect project funding and demand for health insurance, impacting revenue.
- Intensifying Competition: The health insurance sector is highly competitive, with many players offering similar services, which can impact market share and profitability.
- Regulatory Changes: Changes in healthcare regulations can increase compliance costs and affect operations
Peer Comparison
| Name of the company | Face Value (₹ per share) | EPS | Net Profit (₹mn) | Net worth (₹mn) | RoNW | P/E | NAV per equity share (₹) | Share Price |
| Niva Bupa Health Insurance Company Limited | 10 | 0.51 | 818.52 | 20,495.90 | 5.68% | 145.11 | 12.06 | 74 |
| Listed Peers | ||||||||
| Star Health and Allied Insurance Company Ltd | 10 | 14.48 | 8,450.10 | 63,416.20 | 14.35% | 38.27 | 108.35 | 543.05 |
| ICICI Lombard General Insurance Company Ltd | 10 | 39.03 | 19,185.90 | 119,597.80 | 17.17% | 48.91 | 242.75 | 1,896.80 |
| The New India Assurance Company Ltd | 5 | 6.77 | 10,911.20 | 218,443.30 | 5.13% | 28.62 | 132.55 | 193.75 |
| Particulars | Unit | Niva Bupa Health Insurance Company Limited | Star Health and Allied Insurance Company Ltd | ICICI Lombard General Insurance Company Ltd | The New India Assurance Company Ltd | ||||||||||||
| June 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 | June 30, 2024 | March 31, 2024 | March 31, 2023 | Marc h 31, 2022 | June 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 | June 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 | ||
| Retail Health GWP | (₹ in millions) | 9,905.74 | 38,397.34 | 29,697.40 | 21,573.40 | 30,994.70 | 139,512.00 | 119,503.00 | 101,2 94.00 | 2,927.00 | 12,445.20 | 10,372.20 | 8,859.90 | 7,411.90 | 30,988.10 | 26,970.70 | 26,837. 30 |
| Retail Health Market Share | % | 9.88 | 9.1 | 8.38 | 7.02 | 30.91% | 33.06% | 33.73% | 32.95 % | 2.92% | 2.95% | 2.93% | 2.88% | 7.39% | 7.34% | 7.61% | 8.73% |
| Retail health accretion market share | % | 14.98 | 12.85 | 17.31 | 18.22 | 24.80% | 29.55% | 38.80% | 42.86 % | 2.04% | 3.06% | 3.22% | 3.41% | 6.89% | 5.93% | 0.28% | 1.91% |
| Gross Direct Written Premium | (₹ in millions) | 14,641.76 | 56,075.74 | 40,730.31 | 28,099.71 | 34,759.20 | 152,544.50 | 129,524.70 | 114,6 34.70 | 76,876.30 | 247,761.10 | 210,250.90 | 179,768.60 | 1,14,401.00 | 403,638.30 | 374,820.40 | 355,14 9.50 |
| Gross Written Premium | (₹ in millions) | 14,641.76 | 56,075.74 | 40,730.31 | 28,099.71 | 34,759.20 | 152,544.50 | 129,524.70 | 114,6 34.70 | 79,310.50 | 255,941.60 | 217,718.30 | 185,623.90 | 1,17,879.20 | 419,964.60 | 387,914.80 | 368,346.10 |
| Net Written Premium | (₹ in millions) | 11,515.98 | 44,209.51 | 31,831.07 | 21,576.28 | 31,701.70 | 140,673.60 | 123,196.40 | 108,0 94.90 | 53,605.30 | 181,656.10 | 155,395.40 | 134,895.90 | 95,769.00 | 344,074.00 | 311,265.70 | 297,60 2.30 |
| Premiums earned (net) | (₹ in millions) | 10,180.21 | 38,112.49 | 26,627.51 | 17,525.09 | 35,203.20 | 129,382.70 | 112,615.90 | 98,09 1.60 | 45,038.80 | 168,664.70 | 148,228.50 | 130,320.90 | 85,027.70 | 340,282.70 | 302,443.90 | 289,05 2.80 |
| Assets Under Management | (₹ in millions) | 56,744.43 | 54,582.31 | 33,660.95 | 24,013.15 | 1,58,019.30 | 154,908.80 | 133,921.00 | 113,7 34.20 | 5,10,043.80 | 489,072.40 | 431,804.00 | 387,862.40 | 8,54,597.50 | 813,111.00 | 735,106.40 | 705,58 8.00 |
| Net Worth | (₹ in millions) | 20,317.72 | 20,495.90 | 8,311.23 | 5,076.45 | 66,634.90 | 63,416.20 | 54,339.40 | 46,04 0.60 | 1,23,080.10 | 119,597.80 | 103,922.70 | 91,096.50 | 2,13,428.10 | 211,353.20 | 199,192.50 | 182,31 6.40 |
| Retention Ratio | % | 78.65% | 78.84% | 78.15% | 76.78% | 91.20% | 92.22% | 95.11% | 94.30 % | 67.59% | 70.98% | 71.37% | 72.67% | 81.24% | 81.93% | 80.24% | 80.79% |
| Claims Ratio | % | 64.03% | 59.02% | 54.05% | 62.12% | 67.58% | 66.47% | 65.00% | 87.06 % | 74.03% | 70.79% | 72.36% | 75.06% | 95.98% | 97.36% | 95.58% | 99.46% |
| Expense Ratio | % | 42.05% | 39.77% | 43.20% | 45.40% | 31.58% | 30.20% | 30.33% | 30.81 % | 28.28% | 32.52% | 32.09% | 33.76% | 20.08% | 23.51% | 21.57% | 21.19% |
| Combined ratio | % | 106.08% | 98.79% | 97.25% | 107.52% | 99.15% | 96.67% | 95.33% | 117.8 7% | 102.32% | 103.30% | 104.45% | 108.82% | 116.06% | 120.87% | 117.15% | 120.66 % |
| Expense of Management to Gross Direct Premium Ratio | % | 40.72% | 39.31% | 41.23% | 42.55% | 32.16% | 30.65% | 29.97% | 30.12 % | 26.85% | 29.77% | 29.56% | 30.00% | 17.77% | 20.94% | 19.27% | 18.95% |
| Return on Net Worth | % | -0.92% | 5.68% | 1.87% | -36.25% | 4.90% | 14.35% | 12.32% | – 25.68 % | 4.78% | 17.17% | 17.73% | 15.36% | 1.02% | 5.50% | 5.53% | 0.91% |
| Yield on total investments | % | 7.58% | 7.13% | 6.70% | 6.60% | 1.88% | 7.66% | 6.94% | 8.25 % | 2.22% | 7.74% | 7.05% | 7.97% | 2.75% | 14.92% | 17.64% | 12.18% |
| Solvency Ratio | times | 2.39 | 2.55 | 1.67 | 1.72 | 2.29 | 2.21 | 2.14 | 1.67 | 2.56 | 2.62 | 2.51 | 2.46 | 1.83 | 1.81 | 1.87 | 1.66 |
| Number of active lives insured at the end of the Fiscal | # | 14.99 | 14.73 | 9.89 | 7.29 | NA^ | NA^ | NA^ | NA^ | NA | NA | NA | NA | NA^ | NA^ | NA^ | NA^ |
| Average ticket size per policy | ₹ | 30,419.06 | 28,797.48 | 26,083.91 | 22,186.45 | 19,025.95 | 18,207.06 | 15,725.19 | 15,13 6.04 | 9,067.20 | 6,848.39 | 6,426.02 | 6,133.34 | 18,031.95 | 13,913.65 | 12,508.74 | 11,994. 50 |
| GWP per policy sold by agents | ₹ | 25,058.36 | 25,028.29 | 22,895.36 | 20,645.93 | 17,228.58 | 16,973.22 | 15,095.24 | 14,08 7.36 | 16,443.91 | 13,859.89 | 12,715.41 | 12,572.55 | 6,108.69 | 5,824.95 | 5,412.87 | 7,101.2 6 |
| Renewal Rate for Retail Health Indemnity Products (by value) | % | 90.24% | 92.15% | 89.41% | 87.97% | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ |
| GWP contribution of new retail health indemnity policies with sum insured ≥ ₹ 1 million | % | 73.66% | 70.72% | 67.37% | 63.01% | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ |
| Network Hospitals | # | 10,426 | 10,460 | 10,005 | 8,562 | NA^ | NA^ | 14,862 | 12,82 0 | NA^ | 10,425 | 7,547 | 6,751 | NA^ | NA^ | NA^ | NA^ |
| % of cashless claims through Network Hospitals | % | 75.45% | 70.01% | 66.54% | 62.53% | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ | NA^ |
| Claim Settlement Ratio | % | 93.21% | 91.93% | 90.53% | 90.78% | 85.56% | 86.49% | 80.07% | 82.33 % | 89.35% | 86.58% | 90.65% | 87.97% | 98.52 | 99.9 | 99.82 | 99.75 |
Risks
- Niva Bupa Health insurance profitability depends on our ability to manage our underwriting risks and appropriately price our products and any failure to accurately estimate medical expenses or the frequency of claims could have a material adverse effect on our business, financial condition, results of operations, cash flows and prospects.
(₹ in millions, except %)
| Particulars | 2024 | 2023 | 2022 |
| Claims Incurred (net) | 22,495.41 | 14,393.11 | 10,886.25 |
| Premiums earned (net) | 38,112.49 | 26,627.51 | 17,525.09 |
| Claims Ratio | 59.02% | 54.05% | 62.12% |
| Particulars | 2024 | 2023 | 2022 |
| Claims Ratio of SAHI | 65% | 62% | 81% |
| Claims Ratio of Private Insurers | 90% | 87% | 105% |
| Claims Ratio of Public Insurers | 103% | 105% | 126% |
- As a significant portion of business is generated from the health insurance line of business, any adverse changes to the demand for health insurance products and the retail health insurance sector may affect the sale of our health insurance products and in turn our business and profitability.
- Niva Bupa Health insurance is subject to extensive supervision and regulatory inspections (onsite and offsite, thematic or otherwise) by IRDAI and any regulatory and statutory actions against us or our distributors could cause us reputational harm and have a material adverse effect on our business, financial condition, cash flows, results of operations and prospects.
Litigation involved in Niva Bupa Health insurance
Gray Market Premium
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