ICICI Securities has released a research report on Niva Bupa Health Insurance Company, highlighting the company’s impressive growth in health insurance premiums. Between FY20 and FY25, Niva Bupa’s premiums have grown at a compound annual growth rate (CAGR) of approximately 40%. This growth trend has continued into Q1FY26, with the company reporting a 28% increase in premiums on a comparable basis.
The report attributes this growth to Niva Bupa’s improved scale and assets under management (AUM), which are expected to drive margin expansion and earnings growth. ICICI Securities forecasts an IFRS profit after tax (PAT) CAGR of 55% for Niva Bupa between FY25 and FY27.
The company’s ability to implement price hikes and manage loss ratios is also expected to support its growth. Additionally, Niva Bupa’s expense ratio has already improved in Q1FY26, aligning with the Expense Outgo Management (EOM) guidelines.
Despite the positive outlook, the report highlights potential risks, including increased competitive intensity and claim costs that could impact profitability. However, based on its analysis, ICICI Securities has maintained a “BUY” rating for Niva Bupa, with a revised target price of INR 92 (up from INR 90).
Overall, the report suggests that Niva Bupa is well-positioned for continued growth and margin expansion, driven by its increasing scale, improved AUM, and ability to manage loss ratios. Investors are advised to consult with certified experts before making any investment decisions based on this report. With its strong growth trajectory and improving financials, Niva Bupa appears to be an attractive investment opportunity in the health insurance sector.