Mumbai: Niva Bupa Health insurance owned by North Niva has advanced its purpose to achieve premium income of Rs 5,000 Crore in one year to FY24, after pickup in sales.
“We hope to end the year with a premium of RS 2,700 Crore, which is a more than 50% increase compared to the previous year.
We expand our agency network and our geographical presence and open a new branch every 3.5 days and already have 160 offices.
Have 15 bank partners and grow direct sales to our customers and digital through partnerships with Fintechs, “said CEO of Niva Bupa Krishnan Ramachandran.
He has joined Niva Bupa on May 2020 from Apollo Munich, where he is the CEO.
Apollo Munich was previously obtained by HDFC Ergo General Insurance.
Niva Bupa was originally promoted by Max in a partnership with the Boute headquartered UK.
In 2019, Max India sold its shares to North Sejati, which acquired 55% through a special destination vehicle fetle tone.
Earlier this year, the AXIS Bank acquired 9.9% of the shares in the Fettle tone, which gave it almost 5.5% ownership in Niva Bupa’s health.
According to Ramachandran, most of the growth will come from increasing health penetration in the Indian market.
Part of the company’s strategy is to launch the product each quarter to open the fresh segment for coverage.
“We launched this year’s product targeted at senior citizens.
We also launch new personal accident products targeted at small and medium enterprises and entrepreneurs.
We will also launch products targeted at diabetics and people who have chronic conditions, “Krishnan said.
While Covid has regarding the bottom line of Niva Bupa along with other health insurance companies in the country, Ramachandran said that the company expects to benefit FY23.
The company, which has a paid-up capital of 1,500 crore, has seen its solvency margin swimming under 1.7 times the requirements of the law such as the 1.5 times needed by the regulator.
“There are no capital constraints of growth from existing shareholders.
From their point of view, they are willing to fund the capital of growth as much as required,” he said.
The profit for the current year is expected to be beaten due to a higher combined ratio (claim & management costs to total premiums).
The combined ratio, which was 101% in the previous year, deteriorated to 113%, in part because higher expenses due to Covid claims and increased management costs due to expanding their network.
Although it is not clear whether the average increase in medical costs seen during Covid will remain high, Ramachandran expects a combined ratio to increase by scale.