Motilal Oswal's research report on Niva Bupa Health Insurance
Niva Bupa Health Insurance (Niva) has emerged as one of the fastest-growing health insurers, delivering a CAGR of ~34% during FY22-25 and garnering the highest incremental market share in the retail health segment. We expect the growth momentum to remain strong and estimate a CAGR of 25% in gross written premium (GWP) over FY25-28E (Pre 1/n). Niva has a diversified product mix, with retail/group health accounting for 68%/31% as of 9MFY25. In the group segment, a one-third contribution comes from corporates and the remaining from credit-linked products. Consistent innovations and right pricing will boost momentum in its retail health segment (33.5% CAGR in FY22-24). Among standalone health insurers (SAHIs), Niva has one of the best claim settlement ratios (90% in FY24) thanks to its efficient claim management process, focus on transparency, quick AI-powered claim settlement, and high-quality healthcare network.
Outlook
We expect the company to report a CAGR of 25%/32% in pre-1/n GWP/PAT over FY25-28. We initiate coverage on Niva with a TP of INR 100, based on 40x FY27E P/E on IFRS PAT.
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