Niva Bupa Health Insurance Company (NIVABUPA) Q4 21/22 earnings summary

Executive summary

• FY22 gross written premium reached ₹2,810 crore, up 60% YoY; retail health premium grew 59%, while net loss widened to ₹196.53 crore from ₹49.74 crore.

• Underwriting loss increased to ₹313.93 crore from ₹107.71 crore; revenue-account operating profit was ₹45.08 crore versus ₹124.96 crore.

Financial highlights

• Net earned premium was ₹1,752.51 crore versus ₹1,150.87 crore; net claims incurred rose to ₹1,088.63 crore from ₹645.56 crore.

• Net commission increased to ₹120.42 crore from ₹63.48 crore; insurance operating expenses rose to ₹857.39 crore from ₹549.54 crore.

• PBT and PAT loss were ₹196.53 crore, versus ₹49.74 crore in FY21; basic EPS was -₹1.42 versus -₹0.43.

• ₹271.72 crore of expenses above the allowable management-expense limit was transferred from the revenue account to the P&L, compared with ₹176.24 crore in FY21.

Outlook and guidance

• Industry premiums are expected to benefit from continued health-segment demand, post-COVID awareness, expansion into smaller cities, digital and offline distribution, and planned FY23 motor third-party premium increases.

• Potential constraints include adverse effects from new COVID variants and higher reinsurance rates.