Niva Bupa Health Insurance Company (NIVABUPA) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 and 9M'FY25 were marked by a significant regulatory-driven accounting transition, impacting reported numbers but not underlying business fundamentals or economic value.

• Gross written premium for 9M'FY25 reached ₹4,683.6 crore, up 21.7% YoY; Q3'FY25 GWP was ₹1,442.1 crore.

• Profit after tax for 9M'FY25 was ₹7.4 crore (Indian GAAP) and ₹119.5 crore (IFRS), reversing a prior year loss.

• Retail health market share increased to 9.6% from 9% YoY, with active lives insured at 19.8 million.

• The company completed its IPO in November 2024, raising ₹80,000 lakhs to augment capital and maintain solvency.

Financial highlights

• Net earned premium for 9M'FY25 was ₹3,367.0 crore, up from ₹2,593.2 crore in 9M'FY24.

• IFRS cash for Q3 more than tripled YoY to INR 260 crores.

• AUM reached ₹7,310.7 crore as of 9M'FY25, with an annualized investment yield of 7.4%.

• Solvency ratio as of December 31, 2024, was 3.03, well above the statutory minimum.

• Net profit after tax for the quarter was ₹1,324 lakhs, compared to ₹458 lakhs in the same quarter last year.

Outlook and guidance

• Management expects to meet the glide path for expense of management as approved by the board and regulator.

• Steady-state combined ratio on IFRS expected at 97-98%, supporting high-teens ROE.

• Expense ratio targeted to reach 36% by next financial year, driven by scale, technology, and channel/product mix.

• Financial results for the quarter are not indicative of full-year performance due to industry seasonality.

• Further clarity on combined ratio trajectory expected after another quarter of transition.