Niva Bupa Health Insurance Company (NIVABUPA) Q4 16/17 earnings summary

Executive summary

• FY17 gross written premium rose 25% to ₹593.93 crore; loss before tax narrowed to ₹3.68 crore from ₹68.50 crore in FY16.

• Growth initiatives included Bank of Baroda distribution, digital sales and product development; policies increased to 307,025 from 265,089.

Financial highlights

• Net premium was ₹563.92 crore and earned premium ₹544.28 crore, versus ₹451.55 crore and ₹393.11 crore, respectively, in FY16.

• Net incurred claims rose to ₹282.81 crore from ₹234.02 crore; net commission was ₹58.97 crore versus ₹44.80 crore, and operating expenses were ₹256.69 crore versus ₹221.23 crore.

• Revenue account operating profit was ₹85.07 crore, versus an operating loss of ₹81.47 crore in FY16; the P&L reported a ₹3.68 crore net loss, against ₹68.50 crore.

• Investment income allocated to the revenue account was ₹33.69 crore; income allocated to the P&L account was ₹18.22 crore.

Outlook and guidance

• FY17 priorities centered on customer-centric profitable growth, renewal and portfolio management, digital development, expense and claims control, stronger processes and workforce enablement.

• Five themes for the year ahead: people first, remarkable customer experience, profitable growth, renewal-focused portfolio management and digital development.

• Indian health insurance GWP was forecast to grow ~15% annually to ~₹50,000 crore by FY20, supported by low insurance penetration and greater health awareness.