Niva Bupa Health Insurance jumped 11% on 23 April 2025 as Motilal Oswal Financial Services (MOFSL) initiated coverage on the stock with a positive view. The brokerage has a ‘Buy’ rating and a target of INR 100, which means 29% upside from INR 77.62.

The stock is not so old and went up to INR 86.46 on NSE intraday. As of 23 April 2025, Niva Bupa’s market cap is INR 15,403.66 crore.

What’s driving the optimism?

MOFSL says Niva Bupa Health has become one of the fastest growing standalone health insurer in India. The company has grown 34% CAGR in Gross Written Premium (GWP) in FY22 to FY25 and has highest incremental market share in retail health. Analysts now expect 25% CAGR in GWP and 32% CAGR in Profit After Tax (PAT) in FY25 to FY28.

MOFSL credits this robust outlook to the company’s strong brand equity, product innovation, and a highly diversified distribution model. The firm is seen benefiting from a well-rounded sales network: agents (30%), corporate agents (28%), brokers (29%), and direct channels (13%) contributed to the company’s distribution in the first nine months of FY25 (9MFY25).

Digital Push and Operational Efficiency

One of the key highlights of Niva Bupa Health is its digital push. The company has invested heavily in technologies across core areas like policy management, claims tracking and telemedicine services. This will lead to operational efficiency, cost control and scalable growth.

And to top it all, Niva Bupa Health has a claim settlement ratio of 90% in FY24, one of the highest among standalone health insurance companies. This is due to its transparent claims process and AI powered claim adjudication.

Global Backing and Strategic Leadership

A big part of Niva Bupa’s growth story is its strategic partnership with Bupa Group, a global healthcare leader based in the UK. Bupa with over 70 years of legacy and over 50 million customers across 190 countries brings in underwriting expertise and industry depth to the Indian venture.

The MOFSL report says Niva Bupa