The accounting change for Gross -Premies Written (GWP) resulted in NIVA Bupa -Health Insurance Insurance that an operational loss for the first quarter of this tax under the accounting standards of Indian Gaap, says that the executive director and CFO Vishwanath M. In an interview with lineVishwanath says that the health insurer is convinced that it will achieve the new legal costs of management (EOM) by the end of the current financial year. Fragments:
Niva Bupa Health Insurance witnessed a growth of 11.44 percent on an annual basis in his gross premiums (GWP) for the first quarter of this tax, up to £ 1631.90 crore. Was this growtholume led?
The reported growth of 11.44 percent in GWP for Q1 must be viewed in the light of a change in our accounting method. The basis of the past financial year was calculated differently and the treatment of premium recognition has changed this year-especially for long-term policy. Based on a like -based basis, after correction for the accounting change, the actual growth is 28 percent for the quarter. It is important to note that this shift is purely accounting -related and does not reflect any change in the underlying company fundamentals. The premium recognition approach for certain long -term policy has been revised, which explains the reported variance.
The growth is widely based on all our distribution channels-agency, bancassurance and broker all-them all strong performance. The retail segment has surpassed total growth, with a growth of more than 30 percent on an annual basis in Q1. Yes, this is clearly due to volume -led growth. The number of lives that fall under our policy increased strongly of 1.5 crore in Q1FY25 (including both retail and group) to 2.25 crore in Q1FY26, which marked a considerable increase of 50 percent.
What was the contribution of the store insurance compared to group insurance? Do you expect this mix to change over the next two to three years?
In Q1FY26, the individual (retail) activities contributed around 67-68 percent of our total GWP, with the remaining share from group insurance. This is broadly in line with the mix of Last Fiscal and we are comfortable with this composition.
Both retail and group segments produce healthy growth and we see no immediate reason for this mix to shift equipment in the short term. We expect that it will remain in a similar reach for the next two to three years.
In Q1FY26 the company reported an operational loss of £ 145.22 Crore, compared to a business profit of £ 23.23 Crore in Q1FY25. What led to this operational loss?
The operational loss in Q1FY26 is mainly due to the change in accounting treatment for gross written premiums (GWP). This change was implemented halfway through the previous financial year, which resulted in a lower GWP basis for Q1FY26. Under Indian Gaap, this adjustment had an influence on the net premiums (NWP) and the total income, which led to a decrease compared to the previous year. That is why a comparison on an annual basis on a GAAP basis does not offer a consistent or accurate picture.
That is why it is important to consider our performance under International Financial Reporting Standards (IFRS), which we follow for consolidated reports with our majority shareholder, Bupa. Under IFRS, our performance is much clearer-with the net profit that increases from £ 36 crore in Q1FY25 to £ 70 crore in Q1FY26, which means that the year after year is effectively doubled. There is no such distortion in the IFRS numbers.
How does the company progress in terms of compliance with the new costs of management (EOM) standards?
We are well on our way to meet the legal requirements under the revised EOM standards. Our EOM ratio improved considerably – from 40.7 percent in Q1FY25 to 35.9 percent in Q1FY26, which reflects a reduction of 4.8 percentage points. For the current quarter, the permitted EOM limit – invoicing in permitted expenses to Insurtech and insurance consciousness – is around 35.8 percent. We are very close to this threshold and remain fully committed to achieving full compliance within the established timelines. We are sure that we will meet the regulatory benchmark towards the end of the financial year.
What are the contributions of the desk and Bancrosturance channels in the field of distribution?
Currently, around 30 percent of our company will be rid of the office canal, while around 20 percent are contributed by Banc Acroversurance. We are quite comfortable with this distribution mix and believe that it is durable in the long term. Our office tunet work is growing steadily – we now have more than 1.90 Lakh agents throughout the country and consistently adds 2,000 – 2500 new agents every month.
On the side of the Bancroge we have partnerships with more than 20 banks, including both the public and private institutions. These banks collectively operate thousands of branches and offer us an effective channel to deepen our presence in Tier II and Tier III cities.
At the same time, our office category is also focused on geographical expansion. Everywhere we identify potential in disadvantaged markets, we open new branches or recruit new agents locally to strengthen our footprint. Both channels are an integral part of our strategy to expand access and penetration in smaller cities and emerging markets.
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