Niva Bupa Health Insurance Company Limited is responding to the evolving needs of the customers over 16 years of operations. They offer the customers the ability to access a comprehensive health ecosystem and service capabilities via their ‘NivaBupa Health’ mobile application and website, thereby offering them a holistic proposition. This application provides the customers access to a range of healthcare solutions including diagnostics, digital consultation, annual health check-ups and health education content. Customers can also undertake claims submission, policy servicing and track health parameters through this application. The Promoters, Bupa Singapore Holdings Pte. Ltd. and Bupa Investments Overseas Limited, are members of the Bupa Group. Through the association with the Bupa Group, they have access to its international healthcare insurance experience. Established in 1947, the Bupa Group is an international healthcare organization serving over 50 million customers worldwide, as at December 31, 2023. Company had 14.99 million active lives insured as of June 30, 2024. They are strategically focused on the retail health market and GWP from the retail health products was 67.65% and 68.47% of the overall GWP for the three months ended June 30, 2024 and Fiscal 2024, respectively. The retail health insurance segment is the most promising segment in the health insurance industry in India as of March 31, 2024, due to higher average premium per life, higher renewal rates and lower Combined Ratios as compared to group health insurance. Company sells the products directly to customers through the direct sales channel, which accounted for 13.61% and 13.07% of the business by GWP for the three months ended June 30, 2024 and Fiscal 2024, respectively, and comprise sales made by the sales team and online sales through the website and 'Niva Bupa Health' mobile application. They also rely on intermediated distribution channels comprising individual agents, corporate agents (banks and others), brokers, insurance marketing firms, POSPs and web aggregators to distribute the products. They have a diversified channel mix with corporate agents (banks and others), individual agents and broker channels contributing 27.25%, 32.07% and 27.04% respectively of the business by GDPI for Fiscal 2024 respectively. Through the combination of the direct and intermediated distribution channels, they have a diversified presence across India, and for the three months ended June 30, 2024 and Fiscals 2024, 2023 and 2022, they have generated GWP in every state and union territory in India, with no single state or union territory accounting for more than 20% of the GWP. Company has delivered a 91.93% claims settlement ratio for Fiscal 2024. In addition, 88.41% and 81.50% of pre-authorized cashless claims were approved in the three months ended June 30, 2024 and Fiscal 2024, respectively. They have the Network Hospitals of 10,460 as of March 31, 2024 from 8,562 as of March 31, 2022. Out of the total 10,426 Network Hospitals as of June 30, 2024, 329 were PPN Hospitals, which provide benefits to customers such as free ambulance services, designated relationship manager in the facility, discount on pharmacy, diagnostics and consultations even after discharge. As per financial performance, Niva Bupa Health Insurance Company Limited has posted total income / net profits of Rs 90.48 Cr / Rs (196.53) Cr (FY22), Rs 413.07 Cr / 12.54 Cr (FY23), Rs 328.73 Cr / Rs 81.85 Cr (FY24) and Rs 72.3 Cr / (18.82) Cr (Q1 FY25). So as per previous financials data, company has shown inconsistent results. Company has an average EPS of Rs 0.04 and average RoNW of (2.58)% for last three fiscals. Issue is priced at a P/BV of 6.19 as per NAV of Rs 11.95/- as on 30.06.24. If we attribute latest earnings of FY23, FY24, TTM and annualised FY25 on equity post issue, then asking price is at a P/E of around 1078, 165, 100 and NA respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, six lead managers are associated with this IPO, and have handled around 141 IPOs in last three fiscals. As per financials, Niva Bupa Health Insurance Company Limited has shown inconsistent results, RoNW is 5.68% and P/E is 1078, 165, 100 and NA respectively as per FY23, FY24, TTM and annualised FY25 earnings. Company is one of the fastest growing health insurance company and so, issue looks fully priced as compared to listed peers. Company is a health insurance company in India, which is very competitive and organized business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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