(i) Care Health (Previously Religare Health) Insurance, the health insurance arm of Religare Enterprises Limited (REL), is a specialized Health Insurer offering health insurance services to employees of corporates, individual customers, and financial inclusion as well. RHI commenced business in 2012 and currently has three major shareholders – Religare Enterprises Limited, Union Bank of India and Corporation Bank.

(ii) Care Health (Previously Religare Health) Insurance currently offers products in the retail segment for Health Insurance, Critical Illness, Personal Accident, Top-up Coverage, International Travel Insurance and Maternity along with Group Health Insurance and Group Personal Accident Insurance for corporates.

(iii) Care Health Insurance (CARE) has solidified its position as a significant player in India's health insurance sector. For FY23, CARE stood as the second-largest Standalone Health Insurer (SAHI) and the eighth-largest overall in the Indian health insurance market. Notably, in the retail health segment, CARE ranks as the fourth-largest overall and the second-largest among SAHIs.

(iv) Between FY18 and FY23, CARE saw a remarkable increase in its market share across various health insurance segments. Specifically, its share in overall health insurance rose to 5.3% from 2.5%, in retail health to 7.7% from 4%, and in group health to 4.3% from 1.7%. This growth is reflected in the impressive Compound Annual Growth Rate (CAGR) of premiums in the overall, retail, and group health segments, recording 36%, 35%, and 45%, respectively.

(v) CARE's premium distribution channels show a diverse mix, with 35% coming from individual agents, 18% from corporate agents, and 13% directly (including online). Over the past five years, the contribution from individual and corporate agents has been increasing. The company boasts a strong network infrastructure, comprising 248 branches, 251,000 individual agents, 149 corporate agents, and partnerships with over 22,900 hospitals.

Health Insurance Sector:

(i) Only 4% of the population is covered under individual or family floater policies. Including group health and government schemes, coverage increases to 38%.

(ii) Higher penetration in states like Maharashtra, Gujarat, and Delhi. Overall penetration remains low even in these states.

(iii) Potential coverage expansion between 2x to 4x. Anticipated 10% CAGR in ticket size for existing customers. Expected 20% lower ticket size for new customers. Projected industry growth: 4.5x to 7.6x, reaching INR 1.6 to 2.6 trillion.

(iv) Market Share Increase:

a) In FY23, SAHIs held a market share of 28.1% in overall health insurance, up from 27.3% in FY22.

b) In the retail health segment, their market share rose to 54% in FY23 from 51% in FY22. This is a notable increase from 19% (overall health) and 37% (retail health) in FY19.

(v) Growth Drivers:

a) A major factor contributing to this growth is the effective utilization of individual agents for policy distribution.

b) By the end of FY23, SAHIs had a total of 1,158,676 agents, compared to 676,774 agents for 24 multi-line general insurers (both PSU and Private).

(vi) Product Range and Distribution Networks:

a) SAHIs offer a relatively wider range of health insurance products than private multi-line insurance players.

b) Insurance brokers and corporate agents are now permitted to establish tie-ups with SAHIs, enhancing the distribution network. Agents tend to prefer selling health insurance products from SAHIs while distributing other general insurance products from multi-line players.

(vii) Future Outlook:

Given these advantages, it is anticipated that SAHIs will continue to dominate the retail health insurance market for an extended period.

Business Performance in FY20-21

1. In the financial year ended March 2021, Care Health Gross Domestic Premium Income (GDPI) rose to Rs. 2,559 Crores from Rs. 1,975 Crores, (excluding Ayushman Bharat) registering a growth of 29.5 % over financial year 19-20.

2. Profit After Tax (PAT) for the year increased to Rs. 102 Crores, registering a growth of 55.7 %.

3. Solvency ratio was at 2.45, one of the highest in the industry and significantly above the minimum regulatory requirement of 1.50x. This shows that company is well capitalised.

4. The Company has launched a few new products, namely, Care Advantage, Arogya Sanjeevani, Corona Kavach, Covid Care, Group Care 360, Care Shield Add- on, Explore V2.

5. During the last year 4 new branches were opened and total count of branches is 158. There are around 9,904 permanent employees in the Company. The agent strength, which is back bone of any insurance company has increased from 1,32,474 to 1,69,183 as compared to last financial year.

6. Care Health Insurance has tied up with more than 16,000 healthcare network providers to facilitate cashless services to its customers.

Raises funds in FY20-21

1. Care Health has raised Rs. 337 Crores by allotting 7,98,67,980 Equity Shares of Rs. 10 each on preferential allotment/ private placement basis to M/s Trishikhar Ventures LLP and a few other shareholders at a premium of Rs. 27.89/- per equity share. 2. Care Health has also issued 3.32 Crores of ESOPs.

Current Care Health Unlisted Share Price:

Currently, the Care Health Unlisted share price is ₹175 with an EPS of ₹2.61/share. Note: Check the Latest Care Health Insurance Unlisted Share Price at UnlisteZone Android or iOS Mobile App.

Care Health Unlisted Share FY23 Results Analysis

1. Gross Direct Premium Q4FY23 witnessed a significant increase in gross direct premium, reaching ₹1,495.46 Cr compared to ₹1,250.77 Cr in Q3FY23. The growth trend is also reflected in the yearly figures, as the gross direct premium for FY23 reached ₹5,141.52 Cr, a substantial increase from ₹3,880.91 Cr in FY22. This indicates a healthy growth trajectory in generating premium revenue for Care Health Insurance.

2. Net Earned Premium The net earned premium also experienced a positive trend in Q4FY23, reaching ₹1,201.59 Cr, up from ₹969.61 Cr in Q3FY23. Similarly, the net earned premium for FY23 increased to ₹3,932.04 Cr, compared to ₹2,510.84 Cr in FY22.

3. Operating Profit Q4FY23 witnessed a substantial rise in operating profit, reaching ₹519.27 Cr, compared to ₹47.20 Cr in Q3FY23. The yearly operating profit also increased significantly, with FY23 reporting ₹643.72 Cr, up from ₹282.97 Cr in FY22.

4. Net Profit The net profit for Q4FY23 stood at ₹99.27 Cr, representing an increase from ₹56.84 Cr in Q3FY23. The yearly net profit for FY23 reached ₹245.84 Cr, a substantial improvement compared to ₹11.50 Cr in FY22.

5. Total Net Worth Care Health Insurance's total net worth increased from ₹1,289.20 Cr in FY22 to ₹1,749.17 Cr in FY23.

6. Earnings Per Share (EPS) The yearly EPS for FY23 stood at ₹2.61, reflecting substantial growth compared to ₹0.13 in FY22. This indicates increased earnings available to shareholders for each outstanding share, highlighting the company's profitability and potential return on investment. 7.

Valuation Care Health Vs Star Health

Care Health has a market capitalization of approximately 14,000 Crores and a share price of Rs. 150, with about 94 Crores shares outstanding. Its Gross Written Premium (GWP) remains at Rs. 5,141 Crores, resulting in a Mcap/GWP ratio of 2.74x. On the other hand, Star Health has a market capitalization of around 34,308 Crores, a share price of Rs. 590, and approximately 58.2 Crores shares outstanding. Its GWP is approximately 11,000 Crores, leading to a Mcap/GWP ratio of 3.11x. Comparatively, Care Health is relatively more reasonably priced than Star Health due to its lower Mcap/GWP ratio, indicating a more favorable market capitalization in relation to its Gross Written Premium.

8. Conclusion Overall, Care Health Insurance has demonstrated impressive financial performance in Q4FY23 and throughout FY23. The company exhibited substantial growth in premium revenue, net profit, operating profit, and EPS. Moreover, the significant increase in total net worth signifies a strengthened financial position. These positive indicators suggest effective business strategies, robust operational performance, and enhanced market presence for Care Health Insurance.

Results of 9MFY24