Investment returns kept operating earnings positive for four straight fiscal years through 2026.
Niva Bupa Health Insurance is expected to maintain its strongest level of risk-adjusted capitalisation, supported by internal capital generation and earnings retention, as the Indian health insurer continues to improve its underwriting performance, according to AM Best.
AM Best expects Niva Bupa’s risk-adjusted capitalisation to remain at the strongest level, measured by its Best’s Capital Adequacy Ratio (BCAR), despite the company continuing to record underwriting losses.
The insurer’s operating earnings have remained positive for four consecutive fiscal years through 2026, supported by robust investment returns.
Its underwriting performance has also improved materially in recent years, mainly due to a lower expense ratio as the company expanded its scale.
For fiscal 2026, Niva Bupa reported a return on equity of 10.7% and a combined ratio of 102.0% on a net/net basis under IFRS 17.
AM Best said Niva Bupa’s financial position is also supported by strong financial flexibility, including capital contributions from shareholders and access to capital markets for debt issuance.
Its investment portfolio is considered low risk, with most assets allocated to fixed-income securities with good credit quality.