Founded in 2008, Niva Bupa Health Insurance Limited has established itself as one of India’s leading standalone health insurance companies (SAHI). Offering a wide range of health-focused products and services, including annual health check-ups, digital consultations, and educational content, Niva Bupa leverages technology through its mobile app and website to engage its customers.
Promoted by Bupa Singapore Holdings Pte. Ltd. and Bupa Investments Overseas Limited from the Bupa Group, Niva Bupa benefits from its parent company’s expertise in health services across the UK, Australia, and various other regions worldwide.
Network and Distribution
With 210 branches across India, Niva Bupa has insured 14.99 million active lives as of June 2024. It distributes its products through 77 corporate agents, such as HDFC and AXIS bank and has a network of 10,426 hospitals as of 30 June 2024.
Financial Performance
Niva Bupa’s gross written premium (GWP) showed a 43% CAGR rise between FY22 to FY24. Although the company incurred a loss of ₹196 crore in FY22, it achieved profits of ₹12.5 and ₹81.8 crore in FY23 and FY24, respectively. In addition, the health insurance segment in India is expected to grow by 15-17% CAGR in FY24-FY29, potentially benefiting the business.
IPO Details
Niva Bupa is launching an IPO of ₹2,200 crore, including an ₹800 crore fresh issue and a ₹1,400 crore offer for sale. The funds will support the company’s capital base, with shares to be listed on NSE and BSE.
Company Name: Niva Bupa Health Insurance Limited
Company Established On: 5 September 2008
Company Type: Public Limited Company
CEO/MD: Krishnan Ramachandran
Financial Snapshot
| Particulars | FY23 | FY24 | Q1FY25 |
|---|---|---|---|
| Revenue | ₹4,073 crore | ₹5,607 crore | ₹1,461 crore |
| Net Profit | ₹12.5 crore | ₹81.8 crore | ₹-18.8 crore |
Strengths and opportunities
Niva Bupa Health Insurance is the third largest and second fastest-growing SAHI in India, holding a 17% market share as of August 2024. It offers a variety of customer-focused products, like “Reassure” for affluent clients, “Booster+” with extended coverage, and “Aspire” aimed at millennials. With 99% of new policies applied digitally, the company benefits from Bupa’s expertise in innovation and customer solutions. Supported by an individual agency network of 1,52,436 agents. agents, it also has robust technology and analytics across customer engagement, underwriting, claims, and policy renewal.
Risks and threats
Niva Bupa operates under stringent IRDAI regulations, which can affect its business operations. It relies heavily on intermediated distribution channels, which may create vulnerabilities if partnerships falter. The company has faced losses, notably during FY22 and Q1 FY25, impacted by COVID-19 and seasonal revenue variations. Competing in a crowded market with six other IRDA-recognized standalone health insurers, Niva Bupa also carries borrowings of ₹250 crore as of June 2024, which which exposes it to restrictions.
You can now apply for the Niva Bupa Health Insurance IPO on Upstox. Click here.