Buy Niva Bupa Health Insurance Company; target of Rs 92: ICICI Securities

ICICI Securities's research report on Niva Bupa Health Insurance Company

Niva Bupa has been able to deliver standout growth in health insurance premiums (~40% CAGR between FY20–25 and 28% in Q1FY26 on a comparable basis (without 1/n). Alongside, the company’s improved scale and AUM should help it augment margins and earnings growth ahead (expect IFRS PAT CAGR of 55% over FY25–27E). The relatively accentuated growth and price hikes should also help Niva Bupa manage its loss ratios. Further, the company’s Q1FY26 expense ratio trend has already improved to align with EOM guidelines. Key risks include higher competitive intensity or claim denting profitability.

Outlook

Maintain BUY with revised TP of INR 92 (earlier INR 90)