Recently-listed Niva Bupa Health Insurance Company turned profitable in the second quarter of FY2025, reporting a net profit of Rs 13 crore under I-GAAP standards, compared to a net loss of Rs 7.6 crore in the same quarter last year.
The company’s performance under IFRS standards was even stronger, with a net profit of Rs 24 crore, driven by operational improvements and investment income growth.
The gross written premium (GWP) rose to Rs 1,777.3 crore, with the retail health segment contributing significantly, achieving a market share of 9.9 percent.
The insurance firm showed efficiency improvements, with the combined ratio falling to 101.3 percent from the previous quarter. Its claim settlement ratio also improved to 91.4 percent.
Niva Bupa’s quarterly results follow its recent listing on Indian stock exchanges. The company’s shares debuted on November 14, 2024, at Rs 78.14 per share on the NSE, a 5.59 percent premium over its issue price of Rs 74. The Rs 2,200-crore IPO, which closed with a 1.80 times subscription, raised Rs 990 crore from anchor investors.
The initial public offer of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, got subscribed 1.80 times on the closing day of share sale on Monday. Earlier, the company mobilised Rs 990 crore from anchor investors.
The Rs 2,200-crore issue had a price band of Rs 70-74 per share.
Niva Bupa share price jumped nearly 3 percent today to end at Rs 75.77. The stock is marginally above its IPO price of Rs 74, and has a market capitalisation of Rs 14,000 crore.
Rajat Sharma, Company Secretary and Compliance Officer, said in the earnings call presentation that the company’s profitability reflects its disciplined underwriting and continued investment in digital and automated processes. Niva Bupa said that 99.9 percent of new policies were processed via digital channels and that 87.6 percent of cashless claims were adjudicated in under 30 minutes.
The company, formerly Max Bupa Health Insurance, also expanded its assets under management (AUM) to Rs 5,965.2 crore, delivering an annualised investment yield of 7.5 percent. It has maintained a solvency ratio of 2.25x, comfortably above regulatory requirements.
Going ahead, the company expects to build on its growth momentum by expanding its hospital network, which stood at 10,190 hospitals.
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