Niva Bupa Q4 profit jumps 31% YoY, growth strong but margins under pressure

Niva Bupa Q4 net profit surges 31 percent to Rs 206 crore, gross premiums rise 18 percent

Standalone health insurer Niva Bupa Health Insurance Company Ltd on May 7 reported a 31.2 percent year-on-year increase in net profit at Rs 206 crore for the fourth quarter ending March 31, 2025, compared to Rs 157 crore in Q4 FY24.

The insurer recorded an 18.2 percent year-on-year growth in gross premiums written for the fourth quarter of FY25, reaching Rs 2,078.7 crore compared to Rs 1,759.4 crore in the same period last year.

Net premium written grew by 21 percent year-on-year to Rs 1,672 crore from Rs 1,381.9 crore.

However, underwriting profit fell 12.2 percent to Rs 57.6 crore from Rs 65.6 crore, and operating profit declined significantly by 43.1 percent to Rs 94.9 crore from Rs 166.8 crore a year ago. The company’s solvency ratio remained stable at 3.03 percent on a sequential basis.

In February this year, Niva Bupa Health Insurance Company MD and CEO Krishnan Ramachandran said the company aims to grow 8-10 percent faster than the market over the next five years. He anticipates the sector to expand at a 15 percent compounded annual growth rate (CAGR).

Ramachandran emphasized the industry’s long-term growth potential but noted its capital-intensive nature. “This is a capital-intensive business. So, it is a question of what continued level of investments we choose to make in capitalising on the opportunity,” he explained.

He also underscored the company’s strategy of balancing aggressive growth with profitability. “We, as a management team, definitely want to grow significantly faster than the market, but at the same time, balance that with profitability,” he added.

The results were announced after market hours. Shares of Niva Bupa Health Insurance Company Ltd closed at Rs 81.07, up by Rs 0.22, or 0.27 percent, on the BSE.