Niva Bupa Health Insurance Share Price Jumps 14% – 5 Key Reasons Behind the Surge

Niva Bupa Health Insurance shares jumped over 14% despite weak market sentiment, driven by strong FY25 earnings. 

Nifty 50 has slipped below the 24,400 mark in early trade on Thursday, May 8, 2025, reflecting a cautious mood in the broader market. Yet amid the softness in frontline indices, one stock has bucked the trend and emerged as a top performer—Niva Bupa Health Insurance Company Ltd., which rallied sharply on the back of impressive earnings.

As of 9:59 AM, the stock had surged over 14%, clocking its best single-day performance in more than five months. The trigger? A strong set of numbers for Q4 and FY25, that signalled both operational efficiency and financial strength.

Key Reasons Behind the Stock’s Uptrend

Here’s what’s fuelling investor confidence in Niva Bupa:

• Robust Profit Growth
  

  1. The company reported a 31.2% year-on-year rise in net profit for Q4FY25, reaching ₹206.1 crore.
  2. For the full year FY25, profit soared by a staggering 160.9% year-on-year, reflecting significant operational leverage and improved cost management.

• Strong Premium Growth
  

  1. In Q4FY25, the Gross Written Premium (GWP) rose to ₹2,395 crore, up 36% YoY.
  2. For the entire FY25, GWP stood at ₹7,407 crore, reflecting 32% growth over FY24.
  3. After adjusting for the new 1/N accounting method introduced by IRDAI (effective October 1, 2024), the GWP figures were ₹2,079 crore (Q4FY25) and ₹6,762 crore (FY25), still posting strong 18% and 21% growth, respectively.

• Improved Operational Metrics
  

  1. Claims Settlement Ratio improved from 91.9% in FY24 to 92.4% in FY25, reinforcing trust and customer satisfaction.
  2. Expense of Management was reduced from 39.3% to 37.4%, owing to efficiency gains from digitisation and automation.

• Strengthened Solvency Ratio
  

  1. The solvency ratio rose to 3.03 in FY25 from 2.55 in FY24.
  2. This is a critical metric for insurers, as it indicates the company’s ability to meet long-term liabilities.
  3. In simple terms, a solvency ratio above 1.5 (the regulatory minimum) suggests a well-capitalised and financially sound company, and a ratio of 3.03 is considered highly reassuring.

• Expanding Market Presence

Niva Bupa increased its Retail Health Market Share from 9.1% in FY24 to 9.4% in FY25, further strengthening its leadership position in the Indian health insurance space.

A Look Back at the IPO

Niva Bupa made its stock market debut last year, listing at ₹78.14 on the NSE—a 5.5% premium over its IPO issue price of ₹74.

Disclaimer: The article is for informational purposes only and not investment advice.