Niva Bupa – Is this health Insurance company good for Your Portfolio’s Health?
Updated 9 November, 2024 / Time: 18:06
Niva Bupa is a health insurance company. Its main focus is on retail health insurance. The other product is group health insurance. It also has some business in travel insurance and personal accident insurance.
According to latest data the direct selling of insurance is around 13.4% insurance through agents is around 30% corporate agents are selling also around 30% and the rest is sold through banks or other means. The point to note is that when insurance companies sell directly through office they have to pay less commissions. In the past years the direct selling has decreased and this is negative point as the company is paying heavy commissions to third party.
The parent company is Bupa Group from Singapore. They have a lot of international exposure.
The experience and financial backing of Bupa group has helped in developing a fast network across the entire country. Now they have 210 offices in India.
They have launched many unique products. However the company in the past few years have grown its assets and revenue but still profit is not growing. Latest financial year shows a profit of 81 Crores. This data shows that the company may have deliberately done cost cutting to show better numbers of profit growth.
There is very high competition from STAR, Aditya Birla, HDFC Ergo and ICICI. The reason of low growth is also this competition. With consideration of all the points above we can conclude to stay away from this IPO. We can purchase these shares for medium to long term only after listing and then using