Niva Bupa Health Insurance reported strong H1 FY26 results, with IFRS profit after tax more than doubling to INR 132 crores. Gross written premium (GWP) grew by 23%. The combined insurance service ratio improved by over 100 basis points to 103.1%. Retail growth was strong at 28%, and the company is seeing increased demand following GST reduction. No price revisions are planned for the current quarter.
Financial Performance Highlights
Niva Bupa Health Insurance showcased significant financial improvements in H1 FY26:
- IFRS Profit After Tax: More than doubled to INR 132 crores from INR 60 crores in the previous year.
- Gross Written Premium (GWP): Increased by 23% year-over-year. Totaling INR 3,983 crores.
- Combined Insurance Service Ratio: Improved to 103.1%.
Key Performance Indicators
- Retail Growth: Grew by 28% without factoring in 1/N impact.
- Customer Satisfaction: Weighted average NPS improved to 57.
- Average Ticket Size (ATS): Remained strong at over INR 31,000.
Business Updates
- Product Innovation: Launched ReAssure 3.0.
- Health Ecosystem: Bupa health app downloads exceeded 13 million.
- Customer App: 5.8 lac monthly active users with significant engagement in health check-ups and doctor consultations.
Strategic Initiatives
- Distribution Expansion: Increased headcount by over 1,000 feet on street.
- Technology Investment: Established an AI lab and launched a modern microservices-based core system.
- GST Impact: Fully passed on GST benefits to customers, anticipating increased demand and better coverage. In October, retail new business ticket size was up 15%.
Loss Ratio and Expenses
- Retail Loss Ratio: Stable at 68.1%.
- Expense of Management Ratio: Improved by 3.7% year-on-year, with H1 EOM at 36.3%.
Investment and Solvency
- Annualized Investment Yield: 7.3% with AUM of INR 8,482 crores.
- Solvency Ratio: Healthy level of 2.85x.
Future Outlook
Niva Bupa is maintaining its long-term ROE guidance of mid-to-high teens by FY29 and focusing on growth with profitability. No price revisions are expected in the short term as the company focuses on volume growth and deeper market penetration.
Source: BSE
