Niva Bupa Health Insurance Company (NIVABUPA) Q4 17/18 earnings summary

Executive summary

• FY18 gross written premium (GWP) rose 27% YoY to ₹754.47 crore; net profit was ₹22.84 crore versus a ₹3.68 crore loss in FY17. Underwriting loss widened to ₹27.55 crore from ₹5.42 crore.

• Growth priorities centered on customer experience, profitable growth, renewals, digital capabilities, expense control and claims management.

Financial highlights

• Net premium was ₹587.74 crore versus ₹563.92 crore; earned premium was ₹575.85 crore versus ₹544.28 crore in FY17.

• Net incurred claims were ₹289.02 crore versus ₹282.77 crore; net commission fell to ₹22.67 crore from ₹58.97 crore, while management expenses rose to ₹291.71 crore from ₹256.73 crore.

• Profit before tax and net profit were ₹22.84 crore, compared with a ₹3.68 crore loss in FY17; basic and diluted EPS were ₹0.25 versus negative ₹0.04.

• Investment income allocated to the policyholders’ account was ₹29.95 crore and to the shareholders’ account ₹20.89 crore; other income was ₹2.74 crore.

Outlook and guidance

• FY18 priorities included profitable renewal growth, compelling products, digital investment, expense optimization, robust claims management, stronger processes and technology, and workforce enablement.

• Planned to pursue sustainable growth through agency and bancassurance, expand digital customer experiences, and selectively develop SME/MSME group business and profitable partner relationships.

• HDFC Bank partnership was set to commence in FY19; Ayushman Bharat was under review as a potential successor to the Odisha RSBY scheme.