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Ramachandran emphasised that the industry has a long runway for growth but requires continuous investment. “This is a capital-intensive business. So, it is a question of what continued level of investments we choose to make in capitalising on the opportunity,” he explained.
He also highlighted the company’s strategy of balancing aggressive growth with profitability. “We, as a management team, definitely want to grow significantly faster than the market, but at the same time balance that with profitability,” he added.
Commenting on the Goods and Services Tax (GST) Council’s recommendation to rationalise GST on health insurance, Ramachandran stressed the importance of maintaining input tax credit. He believes that reducing GST to 12% would allow insurers to pass the full benefit to consumers.
Also Read: Why HDFC Life CEO isn’t concerned about higher insurance FDI
“Affordability on health insurance is important, especially given healthcare inflation and rising healthcare costs. So, any lowering of GST with input tax credit will be beneficial to the Indian consumer,” he stated.
Niva Bupa reported a 20% YoY increase in net earned premium for October-December 2024 (Q3FY25), reaching ₹1,136 crore from ₹950 crore. However, its underwriting loss widened by 42% to ₹101 crore, while operating profit dropped 71% to ₹3.4 crore. The combined ratio rose to 108.29% from 100.55%, indicating higher expenses and claims.
The company made a muted stock market debut on November 14, listing at ₹78.14 on NSE (5.59% premium) and ₹78.50 on BSE (6% premium) against its initial public offering (IPO) price of ₹74.
With a market capitalisation of approximately ₹14,998.06 crore, Niva Bupa’s stock has gained nearly 5% in the past month.
Also Read: Will submit the draft insurance bill to Cabinet shortly, says DFS Secy M Nagaraju
For the entire interview, watch the accompanying video
(Edited by : Unnikrishnan)
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