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The impact of GST rate cuts on margins driven by the unavailability of input tax credit has been a key concern for investors. Towards that end, Niva Bupa clarified to have passed on the impact to distributors, while volume growth has accelerated (more than 50% new business growth and 100bps renewal rate increase in retail segment during Oct’25).

We believe Star Health (Star) is on a steady earnings growth trajectory driven by better incremental balance between volume growth and profitability, as witnessed in its H1FY26 result (13.1% YoY growth in GEP, while IFRS PAT grew 20.9% YoY).

Niva Bupa (Niva) reported 17% YoY growth in NEP to INR14.2b (in-line) in 2QFY26. For 1HFY25, NEP grew 18% YoY to INR26.4b.

Star Health (STARHEAL)’s net earned premium grew 10% YoY to INR40.8b (in-line) in 2QFY26. For 1HFY26, NEP grew 11% YoY to INR80b.

ICICI Lombard (ICICIGI) has reported healthy earnings growth of 25.4% over the last three years and 22.9% YoY growth in H1FY26 (26.2% ex-capital gains).

ICICI Lombard’s (ICICIGI) gross written premium rose 2% YoY in 2QFY26 to INR70.6b (in line), impacted by the 1/n regulation. NEP grew 12% YoY to INR56.5b (16% beat).

We believe Star Health (Star) is on a steady earnings growth trajectory driven by better incremental balance between volume growth and profitability, as witnessed in its Q1FY26 result (14% YoY growth in GEP while IFRS PAT grew 44% YoY).

Star Health (STARHEAL) has reported lower growth than its SAHI peers, which has led to market share loss for the company in the health segment to 11.4% (YTDFY26) vs. 15.7% in FY21.

Niva Bupa has been able to deliver standout growth in health insurance premiums (~40% CAGR between FY20–25 and 28% in Q1FY26 on a comparable basis (without 1/n).

We initiated coverage on Niva Bupa in Apr’25 highlighting the faster-thanindustry growth momentum, product innovation capabilities, high standards of customer servicing and its focus on strengthening profitability.

Niva Bupa posted a 20% YoY growth in NEP to INR12.2b (in line) in 1QFY26. The loss ratio at 77.9% (our est. of 72.3%) increased 1,390bp YoY due to the impact of 1/n, higher reserving led by suspension of auto adjudication of claims.

Star Health’s (STARHEAL) net earned premium rose 12% YoY to INR39.4b (in line) during 1QFY26. Claims ratio at 69.5% (in line) grew 190bp YoY, driven by a 15% YoY increase in net claims incurred to INR27.4b (in line).

*over or under performance to benchmark index In Q1FY26, the company's gross direct premium income (GDPI) was largely flat YoY, at Rs. 7,735cr, as strong performance in its core portfolios was offset by...

ICICI Lombard’s (ICICIGI) gross written premium was up 2% YoY in 1QFY26 at INR81b (in line), impacted by 1/n regulation and its cautious approach to the motor segment.

Niva Bupa Health Insurance (Niva) has emerged as one of the fastest-growing health insurers, delivering a CAGR of ~34% during FY22-25 and garnering the highest incremental market share in the retail health segment.

Earnings lagged estimates (~15%) at Rs. 510 crore, declined by 2% y-o-y mainly led by lower investment income (down 17% y-o-y) in Q4FY25. GDPI was also muted at just ~2.3% y-o-y in Q4 mainly due to slowdown in motor segment and deferred accounting of longterm policies.

ICICIGI’s gross written premium was 10% up YoY in 4QFY25 to INR69b (in line), impacted by 1/n regulation implementation for long-term products. NEP grew 20% YoY to INR52.3b (15% beat). For FY25, it grew 17% YoY to INR198b.

Niva Bupa has been able to deliver standout growth in health insurance premiums (~40% CAGR between FY20-25) while its improved scale and assets under management should help improve margins and earnings growth ahead (expect IFRS PAT CAGR of 53% over FY25-27E).

Star Health reported weak performance for Q3FY25, with GWP growth at 5.3% (at a 1.8% miss) impacted by implementation of the 1/n regulation and Combined Ratio at 103.3% vs our estimate of 100.5% driven by higher Claims and Expense Ratio (affected by 1/n premium accounting of long-term policies).

ICICIGI’s gross domestic premium income (GDPI) was flat YoY in 3QFY25 at INR65b (in line), impacted by 1/n regulation implementation for longterm products.