February 04, 2025
Key Financial Highlights (Q3 FY2024-25)
Niva Bupa Health Insurance Company Limited (NSE: NIVABUPA, BSE: 544286) has announced its unaudited financial results for the quarter and nine months ending December 31, 2024. The company reported robust growth in gross premiums written, supported by strong market expansion, although rising claims and expenses impacted profitability.| Financial Metrics (₹ in Lakhs) | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 |
|---|---|---|---|---|---|
| Gross Premiums Written | 1,77,733 | 1,44,207 | 1,41,245 | 4,68,358 | 3,84,814 |
| Net Premium Written | 1,39,329 | 1,15,243 | 1,12,017 | 3,69,732 | 3,03,903 |
| Premium Earned (Net) | 1,21,322 | 1,13,580 | 94,959 | 3,36,704 | 2,59,320 |
| Investment Income (Net) | 6,818 | 6,791 | 4,094 | 19,357 | 12,214 |
| Net Commission | 28,029 | 26,078 | 18,745 | 76,907 | 49,713 |
| Operating Expenses | 18,939 | 15,868 | 16,442 | 52,111 | 49,606 |
| Claims Paid | 66,973 | 76,905 | 52,650 | 2,06,018 | 1,50,830 |
| Profit / (Loss) Before Tax | 1,302 | 1,324 | 458 | 744 | (7,521) |
Segment Performance
- Health Insurance continued to be the largest revenue driver, with net earned premiums of ₹1,11,263 lakh for the quarter.
- Personal Accident Insurance and Travel Insurance showed moderate growth, but Travel recorded an underwriting loss of ₹30 lakh.
- Total Health Segment Profit stood at ₹149 lakh, a sharp decline from Q2 FY25 (₹5,709 lakh), reflecting higher expenses and claim costs.
Expense and Profitability Trends
- Expense of Management (EOM) for Q3 FY25 stood at 41.73%, slightly higher than Q3 FY24 (39.06%).
- Combined Ratio increased to 108.29%, reflecting a rise in claims and operating expenses.
- Solvency Ratio improved to 3.03x, compared to 2.25x in the previous quarter, indicating strong financial positioning.
- Net Profit Margin at 1.15% for the quarter, showing modest improvement.
Key Corporate Announcements
- IPO Utilization: The company successfully utilized ₹77,847 lakh out of ₹80,000 lakh raised through its IPO in November 2024 for capital augmentation.
- Investor Complaints: The company received 269 investor complaints, mostly related to IPO refunds, of which 264 were resolved by quarter-end.
- Regulatory Compliance: Niva Bupa secured forbearance approval for exceeding Expenses of Management (EOM) for FY23 and FY24.
- Pending GST Inquiry: The company paid ₹2,500 lakh under Section 74(5) of the CGST Act in an ongoing investigation.
Management Commentary
Krishnan Ramachandran, Managing Director & CEO, stated:"Our strong premium growth underscores our market leadership in health insurance. However, rising claims and regulatory costs remain challenges. We continue to optimize expenses and enhance underwriting profitability to sustain long-term growth."
Strategic Outlook
- Digital Expansion: Continued investment in digital platforms for seamless policy issuance and claims processing.
- Product Innovation: Launch of new health insurance products catering to changing demographics.
- Regulatory Adherence: Strengthening internal compliance mechanisms to mitigate regulatory risks.