Niva Bupa Health Insurance Company (NIVABUPA) Q4 18/19 earnings summary

Executive summary

• FY19 gross written premium rose 26% YoY to ₹947 crore; the year ended with a net loss of ₹48.39 crore versus profit of ₹22.84 crore in FY18.

• Underwriting loss widened to ₹84.49 crore from ₹27.55 crore; growth priorities centered on agency, bancassurance and profitable, sustainable distribution.

Financial highlights

• Gross written premium ₹947.02 crore vs ₹754.47 crore; net earned premium ₹659.48 crore vs ₹575.85 crore in FY18.

• Net loss before and after tax was ₹48.39 crore vs FY18 profit of ₹22.84 crore; basic and diluted EPS were both -₹0.51 vs ₹0.25.

• Net claims incurred ₹355.64 crore vs ₹289.02 crore; net commission ₹30.85 crore vs ₹23.83 crore; insurance operating expenses ₹357.47 crore vs ₹290.56 crore.

• Revenue-account operating surplus was ₹85.73 crore vs ₹110.17 crore; ₹136.50 crore of excess management expenses was transferred to the P&L under regulatory forbearance.

Outlook and guidance

• Strategic focus: profitable, sustainable growth led by agency and bancassurance, stronger direct channels and a comprehensive digital strategy.

• Expansion plans included tier-2 and tier-3 markets with the filed entry-level Max Health Pulse product; Health Recharge and Max Health Plus broadened product options.

• Regulatory forbearance for expenses of management above allowable limits was granted through FY22; the expense convergence plan remained in progress.