Niva Bupa Health Insurance Company Ltd (NSE: NIVABUPA) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Unidentified Speaker
KRISHNAN RAMACHANDRAN — CHIEF EXECUTIVE OFFICER
VISHWANATH MAHENDRA — CHIEF FINANCIAL OFFICER
Analysts:
Unidentified Participant
Shreya Shivani — Analyst
Varun Acharya — Analyst
Ananga Rana — Analyst
Shobhit Sharma — Analyst
Ritika Dua — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Neva Bhopa Health Insurance Co. Ltd. Q1 and FY26 earnings conference call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anshumandu from ICICI securities. Thank you. And over to you, sir.
Good evening ladies and gentlemen.
Unidentified Speaker
On behalf of ICC securities we invite you all to Q1FY26 results conference call of Neva Pupa Health Insurance. Without further ado, I’ll hand over the call to Mr. Krishna Ramachandra, M.D. cEO. Over to you, sir.
KRISHNAN RAMACHANDRAN — CHIEF EXECUTIVE OFFICER
Thank you Anshuman. And thank you everyone for being on the call and our apologies for the delay. Also there are some technical glitches on the BSE side because of which the financials and presentation are not yet available. But it’s available on NSE. With me are my colleagues Vishwanath, CFO Ankur, CBO, Dr. Babatosh, COO Vikash Jain, the Deputy CFO and CIO Himanshu, Head of Investor Relations and Varun, the Financial Controller. As far as the industry is concerned, health insurance continues to be the largest segment within the non life industry. And in Q1 it experienced a growth rate of 10%.
One thing for all of you to be aware is that the reported numbers because of the multi year accounting change will continue to have noise depending on the proportion of multiyear. So one caveat in terms of the overall industry growth rates and why they appear to be suppressed relative to historical averages. From an industry standpoint, three very important initiatives that I feel I should give you an update on. One is the industry wide awareness campaign with a focus on health and motor as an industry. We’ve been talking about this for a while. That awareness is one of the reasons why at the industry level volume growth has not been in keeping with the potential.
We believe that the awareness campaign will be a game changer in terms of increasing not just awareness but also urgency to purchase health insurance. And as a company we do believe we’ll be a direct beneficiary of this awareness campaign. This is a multi year campaign. So what hopefully some of you may have been may have seen during RTL is only the start of a multiyear campaign that the industry has embarked on. The second important initiative which we believe will fundamentally make insurance more and more affordable as we move along is a common empanelment initiative again led by the General Insurance Council and enabled through the insurance regulations.
And this initiative is well underway and as we speak actually there are close to 1,500 applications that are making their way through various stages to get onto the industry panel. And just to remind all of you, the objective of this is to have common agreements as well as common tariff arrangements over time. Again another very important industry initiative and the third again which has been launched under the aegis of the General Insurance Council is a movement towards more evidence based practice of medicine. As you are all aware post monsoon there is a spurt of infections across the country.
So as an industry we have come together to define protocols for when is admission necessary, what is medically necessary. These have been friction points with customers historically, but now with us as an insurance industry laying out standards, we believe that this will move towards better customer experience. But more importantly it will over time eliminate unnecessary care. Now coming to the company’s performance for Q1 in Q1 and a lot of the numbers I’m going to state will be on a like to like basis so that there is comparison. Our growth overall as a company for quarter one was 28%.
Again this is without the one mile impact and within that our retail health growth, our retail health business grew at 32%. Our IFRS path for the quarter was 70 crores up from 36 crores same quarter last year. And our combined ratio again on an IFRS basis improved from 103.9% to 103.2%. Our Indian GAAP financials will continue to have noise because of the one by an accounting change and this impact will take perhaps between two to three years to play out. But as we have consistently maintained, IFRS is a better reflection of our financials and we continue to publish and report our numbers on an IFRS basis.
Our retail market share moved up same time last year from 9.9% to 10%. So that’s broadly some highlights as far as the financial performance of the company is concerned. On product mix broadly it stays the same. 67% retail, about 31% group and 2% travel. And on the product side again as we have mentioned in the past at a portfolio level, specifically on mature products, we will execute high single digit price revisions in Q1. Specifically on one of our flagship products, which is reassure 2.0, we did execute a 7% increase in Q1. Our ambition is to not just be a health insurer, but also to be a health partner to our customers.
And we deliver a host of what we refer to as ecosystem health services to our customers through our health app. We now have 12.3 million downloads and 7 lakh 5.7 lakh monthly active users on the app, which is a very robust indication of the value that customers see in our services. More than 50,000 health checkups get consummated through the health app every month and more than 6,000 doctor consults again are fulfilled through the app every month. In Q1 we launched a very important new capability which is a chronic condition management program. As you are all aware, India is the diabetes and cardiovascular capital of the world and increasingly obesity and metabolic syndrome is a big health problem with our country.
So with a view to over time bending the cost in claims on account of these conditions, we have launched this program. The objective is to manage these conditions through lifestyle management, through medication management, so that ultimately we avoid customers, stay healthy and avoid hospitalization. So this is a new, exciting new capability that went live in our app. In Q1, as you know, we measure NPS across 35 touch points. Can I proceed? So we Measure NPS across 35 touch points and our blended NPS score stands at 57. At the end of Q1 and on cashless claims discharge, we continue to have an NPS in the high 60s.
Broadly, our distribution mix during the quarter remains unchanged and we continue to invest in expansion, specifically in terms of sales headcount in Q1 as well as in the quarters leading up to Q3. We will continue to invest in expansion in the extent of intelligent automation continues to improve. Specifically, I’d like to call out maybe three capabilities that are in advanced stages of going live. One is we are upgrading our core system to an Oracle Stack, Oracle Health and we are hoping to go live with that sometime in Q2. This will be a significant transformation to our core technology stack.
We are also at an advanced stage of implementing Sprinkler, which is a customer system infused with a lot of AI capabilities. And we have gone live with Commvan, which again allows us, which is AI technology that allows us to listen to every call and improve, whether on the tele sales side or on the customer side, improve call quality and consistency so while we have broadly improved on all automation metrics, there is one metric that did go south in Q1 specifically on claims, Auto adjudication. On account of a bunch of information security assurance reviews specifically with third parties, we did suspend the Auto Adjudication service which did mean that our SLAs on claims were hit.
You would have noticed that typically our cashless rate in 30 minutes is 90% of our cashless approvals are within 30 minutes. In the quarter that came down to 76% as well as our overall SLAs took a hit in Q1 because of which we’ve also had a buildup in our outstanding claims in Q1. Having said that, the information security assurance reviews are complete and we have gone back to being live in Q2 in the month of July itself. But that’s one specific KPI I thought I’d call out which did not go very well for us in Q1.
In Q1 we expanded our PPN network to now 43 cities and 17% of claims in these cities go through the PPN network which is a combination of a great customer experience but more important or equally importantly making sure that customers get high quality treatment but in a more affordable care setup. Also, you know, specifically around claims for Q1, whether it’s ICS or incidence rates, we don’t observe any unusual patterns. They are consistent with the trends that we have seen historically. And the last statement from my side before I hand over to Vishwanath our CFO is that we retained our great Places to Work ranking.
We are Amongst the top 100 places to work in the country across all organizations and in the top 25 in banking and financial services. We have always said that talent is critical to our ability to execute and compete in the marketplace. And this ranking is a good external benchmark of the emphasis and importance and quality of our talent management practices. So with that over to you Vishwanath.
VISHWANATH MAHENDRA — CHIEF FINANCIAL OFFICER
Thank you sir. So some of the financial highlights for Q1FY26 are. So as Mr. Krishan mentioned that GWP grew by 28% in first quarter but against that 28% growth in GWP net and PM grew by only 20% and the IGAAP because of this change in accounting for multi year policies. As a result of this change most of the ratios are looking distorted under igaap. And as you all know we have been publishing audited IFS financials for last three financial years and we also use them for consolidation into BUPA accounts. So I’ll be covering financial commentary basis IFS only.
The profit after tax under IFRS almost doubled from 36 crore last financial year Q1 to 70 crore this year and combined ratio under IFRS has improved by 30 basis point to 103.2% while there is increase in loss ratio by 2.9%. This has been more than offset by reduction in expense ratio by 3.6% under IFRS resulting in this improvement in combined ratio. The retail loss ratio on1.65 basis has increased in Q1 by around 2% largely on account of strengthening of reserves. As Mr. Kishan mentioned that we had put on hold the claim auto adjudication rule engine due to information security assurance review across our third parties.
This has resulted in altering the pattern of cream processing and increase in outstanding reserves as on 30 June 2025. So we are keeping higher reserves on current basis. We’ll monitor this closely in next two quarters and action as warranted. The clean motor adjudication has restarted in quarter two and we have not experienced any abnormal trend in either in incidence rate or average claim size. There is y o y improvement in expense of management ratio to the tune of by 4.8% with quarter one EUM being 35.9% against last year 40.7% same quarter. This is mainly on account of one decrease in gross commission as a percentage of GWP due to change in mix et cetera cut down on some discretionary expenses in Q1 but most importantly because of operating leverage where expenses have gone up by low single digit while GWP has gone up by 28% and we are confident to bring down EUM ratio within regulatory limit in this current financial year and we almost there.
There is a difference of 10 basis point in Q1 as per the glide path submitted to IRDA. Investment yield on annualized basis in Q1 is 7.3% with AUM of more than 8100 crore. Solvency ratio is at a healthy level of 2.86 as on 30 June against regulatory minimum of 1.50. So this was an overview of Quarter 1 FY26. Happy to take questions.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and one on the Touchstone phone. If you wish to remove yourself from the question queue, you may press STAR to. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Prage Jain from Motilal Oswal. Please go ahead.
Unidentified Participant
Yeah hi, good evening everyone is Prage Jain. Firstly on the IFRS numbers when we look at insure the reconciliation that is given the insurance contract IFRS 17 is about 1. The difference is about 179 crores. This I would assume would take care of both the benefit and the benefit of expenses as well as the impact of Banda365 but it’s still a kind of a very big positive number. So could it explain why is this a big positive in this quarter?
VISHWANATH MAHENDRA
So actually in this quarter because we are looking at UPN1 by n basis. That’s why it is looking on the higher side. That’s the only reason.
Unidentified Participant
Okay.
VISHWANATH MAHENDRA
So therefore. Yeah, yeah.
Unidentified Participant
Sorry I’ll take this offline. The other other part is on the. On the loss ratio. So. So is it fair to assume that this incremental, you know IBNR creation that you. You have done in this quarter that should help you that should lead to lower loss ratios in the coming quarters?
VISHWANATH MAHENDRA
Most probably. We are confident that trend should stabilize by end of the year and will release as we experience low incurrence.
Unidentified Participant
Okay. And could you break down your loss ratio or possibly even on IFRS basis between retail and group?
VISHWANATH MAHENDRA
Retail IFRS ratio is around 68% and group would be around 61%.
Unidentified Participant
And what was it last year?
VISHWANATH MAHENDRA
Q1 FY25 last year it was more like retail was around 66% and group hours around 58%.
Unidentified Participant
So there’s an increase in both the sides.
VISHWANATH MAHENDRA
Yes. Yeah. And group is also to do with mixed change more towards corporate than other.
Unidentified Participant
B2B2C okay, got that.
Unidentified Participant
I’ll come back in the.
operator
Thank you. Before we take the next question I would like to remind participants if you wish to ask a question you may press star and 1. A reminder to all participants if you wish to ask question you may press star and 1. The next question comes from the line of Shreya Shivani from clsa. Please go ahead.
Shreya Shivani
Yeah, thank you for the opportunity. I have two questions. First is not really related to the quarterly results but something that we picked up from your fine, you know all the public disclosure of the full year numbers. So I was comparing the volume wise claim rejection data that you have. It has been largely range bound for Neva Pupa by 25 also you were at about 7% or so but for some of the other players in the industry this number has significantly come down to like under 5%. So do you think it is a Range which is achievable for us or do you think that the single digit 7, 8, 9% that you operate in is a far more logical place that you would end up being My second question is on the claims ratio.
Sorry, I’m probably not able to understand the claim ratio becomes there’s a huge difference between IFRS and IGAAP, right? The one which is on your slide 8 and the one which is on your last slide. Is it all of it is because of accounting? I mean what is the. I’m sorry, I’m not able to understand such a big gap between.
KRISHNAN RAMACHANDRAN
Maybe I can take second one. So if you’re referring to this 77.9% ratio. Yeah this is on I give one by n basis because earning has gone down, claims being same. That’s why looking inflated, that should be.
Shreya Shivani
The only reason, right? Even if you are making higher reserve that cannot get that should not get impacted by the one by N accounting. Right. The ibn. Okay. Just that NP is smaller so it is looking higher. That that’s the only logic. Right?
KRISHNAN RAMACHANDRAN
Exactly. Exactly.
Shreya Shivani
Yeah.
KRISHNAN RAMACHANDRAN
And on the. Thanks sir, on the first question, while. There is no so to say perfect claim settlement ratio, it’s largely a function of things like vintage mix, et cetera. And also how well insurer is performing. In terms of avoiding unnecessarily non payable claims. So holistically if you look at it, we’ve been very very stable consistent over. More than eight quarters with robust trigger rate hit rate. On the fraud control side, our mix. Also is largely towards retail. That’s an important indicator and book vintage also plays a role. So while there is no specific number to target, we are confident that the number of 7% around or 92 93%. Of the settlement ratios that you observe consistently are likely to stay that way. Or further improve going forward in time.
VISHWANATH MAHENDRA
So Shayar, I guess the other factor to keep in mind is typically higher settlement ratios are seen in corporate policy. So depending on the I guess your point of some of the other players have stable ratios but settlement rates have gone up broadly with retail books at least our experience is depending on the maturity, anything from 92, 93, 94 is what we have seen. We’ll have to examine what is it that the others are doing to see if there’s any area for improvement for us.
Shreya Shivani
Sure, sure. Just one follow up question that I had you indicated that you’ve taken about 7 or 8% price hike in your flagship product this quarter. Had you taken any price hike in FY25 and I’m asking you this question because your average ticket size per policy between 1Q25 and 1Q2026, there’s a drop. It could be just a function of what you’re selling. You sold something different altogether in this quarter. But just trying to understand what was the price I taken last year versus what has been taken this year.
KRISHNAN RAMACHANDRAN
So we had not taken for this particular product last year. We had not increased the pricing. This is this time only we have increased the price. And on the ticket size you must be seeing this is similar to what it was last year as well. Does that some multi year here and there mix would have changed. That’s where there’s a difference there.
VISHWANATH MAHENDRA
So if you look at it on a like to like basis. Yeah, it’s there on page 10 of the presentation. There’s not much change here.
Shreya Shivani
Okay, okay, okay. Got it, got it. Sorry, sorry. All right, understood. So that number is the 26000 I was seeing is on one by N. So that’s the long term policy that is getting. Fine. Got it, got it. Okay. This is very useful. Thank you. And all the best.
KRISHNAN RAMACHANDRAN
Thank you.
operator
Thank you. The next question comes from the line of praise Jean from Motila Lost one. Please go ahead.
Unidentified Participant
Yeah, hi. You know, just to follow up on plain again, is there anything that you can help us understand on how the fresh book versus the existing book loss ratios are evolving for you say in the last generally. I remember you mentioning in one of the calls that you want to maintain the loss ratio on the renewal book at 75%. So any trajectory, whether it is this loss ratio on the revolver book, how is this shaping versus what are the losses on the price book? This is particularly for the on the.
KRISHNAN RAMACHANDRAN
Retail side so broadly in line. Praish, I’d say range bound. As also mentioned, at least in Q1, we have not seen any pattern shifts on either ACS or incident rates. And with respect to fresh versus new broadly in line with what we’ve spoken about and the number you mentioned.
Unidentified Participant
Okay, and what would be the mix between fresh and new for us in terms of premium on the retail side?
KRISHNAN RAMACHANDRAN
It would be 40, 60, 40 new and balance renewal.
Unidentified Participant
Okay, okay. And any strategy came with respect to, you know, you raising the share of corporate was corporate, which strategy changed there or how are you thinking about this so broadly?
KRISHNAN RAMACHANDRAN
Our strategy on corporate, there are two parts to it. One is, let me say it’s not a strategy but just about being opportunistic wherever we feel our value proposition around integrated care management makes sense and we get adequate price. For example, early this year in January, with two large multinational companies, we were able to win bases our proposition at an adequate price. But otherwise the strategy continues to be focused on SME. SME through all the distribution channels that we have, whether it’s agents, banks, digital partners or our own teams, including brokers. So that’s broadly our corporate strategy and there’s no change on that.
Yeah, sorry.
Unidentified Participant
This question is particularly because when we’ve interacted with the competition, they hinted at the price aggression in the group business, particularly employee. Employee still remains on the higher side and winning the mandate at adequate pricing has been a challenge. So what has been our right to win in this segment?
KRISHNAN RAMACHANDRAN
Broadly? One is, as I said, our focus is on the SME segment where the, I mean the price sensitivity is not the same. Not to say that it’s not a price sensitive segment but because of the nature of how we distribute, for example, many of our banks are very large SME lenders. So you know, so that’s one big channel of distribution. Second is our own agent. So I’d say on the SME segment we have not seen shifts around price sensitivity on the remainder. As I said, it’s opportunistic. It’s about being able to win accounts where on the basis of our proposition, where the pricing makes sense.
You’d like to add Ankur, I think.
Unidentified Participant
You’Ve made the point here. Yeah, that’s it from aku. Thank you.
operator
Thank you. The next question comes from the line of Varun Alacharya from Kotak Securities. Please go ahead.
Varun Acharya
Hi. Hope I’m audible. I had a couple of Questions regarding the pre1 by n and the post1 band accounting. So the claims ratio on a like to like basis that is the without one band accounting, if you compare it is up to about 800 basis points this quarter year on year. So can you break this down into how much of this has flown from higher infectious diseases, how much is from the higher resource you have built because of the water education issue and how much of it is from product mix shift because of the group business or the rather the employer employee increasing? Because this would be helpful in us understanding where the actual normalized claims ratio would be for this year and how things are shaping up vis a vis peers and everybody.
The second question is with regard to the commissions. So if you look at deferred commissions that create an impact on the net commission line item, so that was about 27 crores in pre Q of last year. Now it appears to have gone up to about 50 crores. So has the share of long term policies increase or is this driven by volume overall growing going up. And I did some calculations 3:1 then pad comes out about negative 36 or rather loss of 36 crores. Am I right or I’m in the ballpark over here.
KRISHNAN RAMACHANDRAN
Can you describe so third one ballpark. You are right. So because in our LODR we have given what is the difference in GWP and commission so on loss ratio. Your question is 64% going to 72.3%. Yeah. This is on account of majorly One thing like Mr. Kishan mentioned that we have won a large account two large accounts MNCs on in last quarter of last financial year. Let’s say January 25th. So this is the accounting for UPR we use. So 50% is earned on the same in same quarter. And 50% of that will be earned in last quarter of this financial year which is in this case without one by N.
And one by N will not have the impact on this. Because this is corporate money policy. And that’s the reason the EP is lower in this quarter. Because we don’t have commensurate earned premium these accounts. That’s primarily the reason of increasing claims ratio. And that’s why it is better to look at IFS loss ratio which will not have all these kind of noises. What was the second question? Commission. I could not understand completely. Repeat the second question again.
Varun Acharya
So when we look at commission that we get in pre one by N and post one by N the difference largely is on account of deferred commission. Right. On the long term policies.
KRISHNAN RAMACHANDRAN
Yes.
Varun Acharya
So that in 3Q last year was about 27 crores. Now it has gone up to something like 60 crores.
KRISHNAN RAMACHANDRAN
Last year. You are referring to and you are referring to which report. Or maybe we can. Can we take this offline. But what we can confirm is this commission we are defining and that’s the only difference which we have captured in our LODR report. What is the deferment of commission on that basis?
Varun Acharya
And one more thing, the claims ratio is up about 300 basis points. That can you break it up into what are the components in that?
KRISHNAN RAMACHANDRAN
Yeah. So one is around 2%. As I mentioned it is increase in retail loss ratio that has to do with increase in outstanding which I explained because of this halting this auto adjudication ruling then and around 3% increase in group loss ratio which is on account of mainly mixed change big corporate which we have written compared to other, you know B2B2C business in previous quarter of last year.
KRISHNAN RAMACHANDRAN
Yes.
operator
Thank you. The next question comes from the line of anunga Rana from TA91 Partners. Please go ahead.
Ananga Rana
Hi, I had two questions. One is if I look at your. Average ticket size per policy that has come down year on year. So first, what’s the reason for that and secondly, roughly what is that year. On year growth bid for the Bandka channel? Those are my two questions.
KRISHNAN RAMACHANDRAN
So on ticket size, if you look at page 10 of the presentation on a like to like basis has not been much change.
VISHWANATH MAHENDRA
Yeah. If you’re referring to page number nine, this is because of one by an impact. Okay, got it, got it. Yeah, my bad. Yeah.
Ananga Rana
Okay. And on the banker channel, what would. Our growth look like for banker?
VISHWANATH MAHENDRA
It’s. Our growth on the banker side is also strong. We are growing at a 20% plus on the banker side as well.
Ananga Rana
And if I could fit in one more question and it is that EUM. Has remained constant quarter on quarter. Is this just. Is there some business or is it just a normal fluctuation?
VISHWANATH MAHENDRA
Was that your question?
Ananga Rana
No, no.
VISHWANATH MAHENDRA
Yeah. This is because of some reinsurance payments, this annual settlement we made some sizable insurance payment. That’s why on quarter on quarter you will see that it is stable. Thank you.
operator
Thank you. The next question comes from the line of Shobit Sharma from HDFC Security Ltd. Please go ahead.
Shobhit Sharma
Hi sir, thank you for the opportunity. Sir, I’m sorry to have back again on the loss ratio question. So. So I am not able to understand. If I look at H2FY25 versus H2FY24, the increase in loss ratio was around 4 to 5 odd percentage considering the impact of the one by N. But given in the current quarter, even after acknowledging the mixed change which has happened between in the retail portfolio on the group side, the jump seems to be very huge. So can you help us understand what has actually happened on that side?
KRISHNAN RAMACHANDRAN
So actually it’s a mix of two three things. One is as I mentioned in reply of previous question, even without one by n there is increase in loss ratio moving 64% to 72.3%. That is explained by, you know, this large group which we have written for which earning corresponding earning is not there in this method while they are claimed. So that’s one and from there to one by N loss ratio. This is sheer change in earned premium because of one by N.
Shobhit Sharma
So is it largely because of the large corporate deals which we have underwritten in Q4?
KRISHNAN RAMACHANDRAN
So let me repeat, it is not that large corporate deal was loss Making that’s why it has gone up. We use 50% method of UPR. What that means is 50% is earned in the quarter in which you write the business and 50% in the last quarter. So that’s the facing facing impact of this earnings.
Shobhit Sharma
Okay, okay. Okay. And you mentioned that we have provided for some extra reserving. Can you quantify that? How much is that contributing to the overall increase in the loss ratio?
KRISHNAN RAMACHANDRAN
So this 2% increase around 50 basis point would be change in mix, new renewal and balance would be because of this increase in reserve standing of reserves.
Shobhit Sharma
So 1 1/2 to 2%. Approximately.
KRISHNAN RAMACHANDRAN
Yeah.
Shobhit Sharma
Another thing which I want to know from you is our approach on the long term policies. We have seen your peer has been now very aggressive on capturing a higher market share on that side with the fronting of payouts. So how are we protecting our business on that side? Are we losing any market share on that side? I just want to know your strategy on that.
VISHWANATH MAHENDRA
We are not losing our market share. In fact you would have seen that we are now just 10% market share on the retail business. But having said that, strategically we are moving down our multi year policy. It was in the late twenties earlier. Now this year it is in the early twenties. So.
Shobhit Sharma
Early twenties you mean in the terms of the fresh business we are writing in?
VISHWANATH MAHENDRA
Yeah, multi year. Gwp.
KRISHNAN RAMACHANDRAN
That’s correct.
VISHWANATH MAHENDRA
Gwp Multi year.
Shobhit Sharma
Okay. Okay. Thank you. Thank you. These are my questions. Yeah. All the best.
operator
Thank you. The next question comes from the line of Shreya Shivani from clsa. Please go ahead.
Shreya Shivani
Yeah, thank you. Just to follow up on the, on the premium growth that you spoke about. 28% yoy or 32% yoy. Can you, can you also give how much of this growth has come from volume? Volume increase and how much is it? Is it. Would you be expecting similar trends in the year to come by. In for the year to come by?
VISHWANATH MAHENDRA
Thank you for that question. This increase of almost 30% growth is largely on the volume growth and not the value growth because you would have seen the ticket size remaining same.
Shreya Shivani
Yeah.
VISHWANATH MAHENDRA
Which means our overall all of this large part of this growth is volume growth only.
Shreya Shivani
So I mean more than. Okay, more than 80, 90% of it then in that case if I had to break it, it’s almost 30 growth would be from volume only for the overall retail health team. And to go 32. Yeah. Okay. This is very, very useful. Thank you so much.
VISHWANATH MAHENDRA
Correct.
operator
Hello. We are unable to hear you.
Shreya Shivani
Hello? Yeah, I’m done with it. Thank you so much.
operator
Thank you. The next question comes from the line of Ritika Bandhan amc. Please go ahead ladies and gentlemen. Before we go towards the next question, I would like to remind participants you may press star and one to ask the question. The next question comes from the line of Ritika. Please go ahead.
Ritika Dua
Thank you. And I’m sorry, I’m going to ask you to repeat the bridge you just mentioned to I think to show this question on what was the impact on the loss ratio because of the group exposure and the accounting there. So if you could give the bridge again when the loss ratio on the. On the one by N basis and on without one by N basis. Both.
VISHWANATH MAHENDRA
Sure. Ritika.
Ritika Dua
Thank you.
VISHWANATH MAHENDRA
Yeah. So first is let’s say without 1 by N1 by 65 basis. There we have covered this that there is increase in detail loss issue to the tune of 2% mainly on account of reserve increase and 3% in group mainly to do with mixed change. So that’s the one by 65 loss ratio which has both claims and earned premium amortized on daily basis. So that is the increase. Now there are two more factors which are playing. So one, if we move this one by 65 loss ratio to 50% loss ratio without one by N which is the accounting we were following previously.
So there what happens is because of this 50% method if the premium is uniform it hardly makes any difference on monthly basis you are writing same premium and you are accounting 50% of that. We wrote one large account, two large accounts, two MNCs as on the 1st of January 2025. So 50% of that was earned in last quarter of last financial year and the balance 50% given the method will be earned in last quarter of this financial year. But there is a uniform claim payment. So optically this number without 1 by n 50% loss ratio is looking on higher side.
This is one impact moving from 1 by 65 to 50%. Then there is impact of this one by n where the earned premium is on lower side because of reduction in GWP and accordingly NWP and earned premium and does the work from without one buy and 50% to one by N50%. And we can offline also discuss if you need more details. Profitably written, yes, large groups are profitable. The combined ratio is 100% or below. Yeah.
KRISHNAN RAMACHANDRAN
And also these are multi year contracts. So you will see this effect coming back in Q4 this year for us just so that. Yeah. Multi year contract.
VISHWANATH MAHENDRA
Yeah, yeah.
Ritika Dua
So you part answered my second question which was obviously logically. It should come back like you just said that part of this increase is because of the accounting should come back. And also if you could repeat what you said also on the reserving with that ideally that also should reverse. And lastly sir, have we shared any guidance for FY26 or if you want to share a little longer also whichever ways. That’s the second question.
VISHWANATH MAHENDRA
Yeah. So on increasing reserve. So basically it has to do with change in pattern of claims. So outstanding has gone up because of halt in this auto adjudication. Now one way was to we reduce IBN asked to compensate because generally outstanding has some portion which is released when that those claims are paid. But what we have done and we have yet to see whether there is inherent change in pattern of reporting or processing. That’s why we kept that outstanding same and IBNR as a result overall claims have gone up which is incurred claim. We will monitor this another two quarter or so and if we feel that there is case to reduce this reserve we will do else we’ll carry this so on prudent basis.
That’s on loss issue. Guidance on guidance.
KRISHNAN RAMACHANDRAN
It’s early I think probably after the infectious disease season is done. That’s probably a better time for us to give specific guidance at this point.
Ritika Dua
Thank you so much.
operator
Thank you. Ladies and gentlemen, a reminder to all participants if you wish to ask a question you may press star and 1. The next question comes from the line of Rachnaki from simple. Please go ahead.
Unidentified Participant
Yes, I just wanted to understand your stand on guidance strategy. We are still some of our products, you know are we still following the LTV approach or you know we are. You know I’ll do or we have planned to go for zonal wise pricing.
VISHWANATH MAHENDRA
Yes. LTV we are following and zonal wise pricing is extension of LTV only so charging more appropriate premium to risk pool. And we are considering we already have products where we have three, four zones and we are exploring if there is case to further increase number of zones. But there is no moving away from LTV approach. It is extension of that only price hike. Sorry we missed that the price hike.
KRISHNAN RAMACHANDRAN
The core objective is to negate inflation. The medical underlying medical inflation. The main objective is to negate that or.
Unidentified Participant
Thank you.
operator
Thank you. As there are no further questions from the participants I would now like to hand the conference over to the management for closing comments. Thank you. And over to you sir.
KRISHNAN RAMACHANDRAN
Thank you very much for all your questions. Apologies once more for the delay and no further comments from our side. Thank you.
VISHWANATH MAHENDRA
Thank you. Thank you.
operator
Thank you. On behalf of ICICI Securities. That concludes this conference. Thank you for joining us. And you may now disconnect your line. Thank you. It.