(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.
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
Particulars (In Cr) | 9MFY24 | 9MFY23 |
GWP | 4827 | 3646 |
NEP | 4253 | 3257 |
Premium Earned | 3731 | 2730 |
P&L on sale of investment | 9 | 4 |
Interest, Dividend and Rent | 181 | 124 |
Total Revenue | 3922 | 2858 |
Claims Incurred | 2241 | 1496 |
Commission | 700 | 338 |
Operating Expenses | 871 | 900 |
Operating Profit | 109 | 124 |
Income from Investment | 105 | 73 |
Other Income | 215 | 198 |
Other Expenses | 5 | 3 |
PBT | 210 | 195 |
Tax | 54 | 49 |
PAT | 156 | 146 |
EPS | 1.6 | 1.5 |
₹185
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Find answers to common questions that you may have in your mind.
Please find below the procedure for buying Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares at UnlistedZone.
Please find below the procedure for selling Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares at UnlistedZone.
The lock-in period for Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares varies depending on the category of investors:
This regulation was introduced by SEBI in August 2021. The rule change, which reduced the lock-in period from one year to six months, was aimed at encouraging more investments in startups that are preparing for public offerings or IPOs. This reduction in the lock-in period is seen as a significant step forward, and since its introduction, many Portfolio Management Services (PMS) have been advising their clients to invest in Pre-IPO shares to capitalize on the benefits of early-stage investments.
DIS, or Delivery Instruction Slip, is a tool used by investors to sell or transfer Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares from their demat account to another. There are two types of DIS Methods:
1. Offline-DIS: This is a traditional, paper-based method for transferring shares. When using Offline-DIS, investors are required to fill out a DIS form and submit it to their broker. The necessary fields in the form include:
a. ISIN number of Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares.
b. Name of Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares.
c. Quantity of Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares.
d. Consideration Amount.
e. Target DP ID and Client ID.
f. Annexure.
2. Online DIS: Some brokers offer the facility to transfer Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares through an online DIS system. It's advisable to check with your broker if such a facility is available.
For instance, platforms like Angel Broking provide an Online-DIS feature. In this method, an investor simply needs to add a beneficiary and transfer Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares by filling in details similar to those required in the Offline-DIS.
For a more comprehensive understanding of this process, you can refer to our detailed article: https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/
In recent years, the unlisted share market has expanded significantly, leading to a reduction in the minimum investment amount. Previously, the typical investment ticket size ranged from 5-10 Lakhs, but in the current market scenario, it has decreased to between 35-50k. Therefore, through our UnlistedZone platform, if someone wishes to invest in Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares, the minimum investment required would now be in the range of 35-50k
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates:
Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favorable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period:
The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance.
When you purchase Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares through UnlistedZone, it's important to note that, as per SEBI regulations, these shares can only be transferred to a demat account.
There are two primary ways to check the credit of Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares in your account:
1. Using NSDL or CDSL Applications:
Download the NSDL or CDSL application from the Google Play Store.
To determine whether your stock broker is registered with NSDL or CDSL, you can examine the format of your Demat Account number. The Demat Account number consists of 16 characters, combining the DP ID and Client ID.
DP ID is the unique identification number of the Broker, assigned by CDSL or NSDL.
Client ID is the unique identification number of the Client, representing their portfolio.
In CDSL, the Demat Account number is entirely numeric (e.g., 12345678 for DP ID and 91234567 for Client ID).
In NSDL, the first two characters are alphabetic, representing the country (e.g., 'IN' for India), followed by a 6-digit unique number for the Broker (DP ID) and an 8-digit Client ID (e.g., IN123456 for DP ID and 78912345 for Client ID).
2. Checking in Broker's Application:
The credit of Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares can also be checked in your broker's application. However, it's important to note that it may take T+2 days for the shares to show up in the application after the transaction.
The Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares are credited in the demat account on the same day as the transfer of funds into our company's bank account.
"The price of Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares can be checked in two ways. First, you can join our Telegram channel, where we share the latest prices of all unlisted shares daily in the morning. Secondly, you can check price on our UnlistedZone platform to view historical graphs and prices of all shares in one place."
Investing in Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares, like any investment, carries certain risks that should be carefully considered:
1. Liquidity Risk: Unlisted shares, by their nature, are not traded on public stock exchanges. This can result in lower liquidity compared to listed shares, meaning it might be more challenging to find buyers when you wish to sell your shares.
2. Price Volatility: The price of Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares can be more volatile compared to listed shares. This is partly due to the lack of regular public trading and potentially limited information available about the company's financial health and performance.
3. Regulatory Risk: Unlisted shares are subject to different regulatory frameworks than listed shares. Any changes in regulations or compliance requirements can impact the value and tradeability of these shares.
4. Limited Information: There may be less publicly available information about unlisted companies. This can make it more difficult to assess the company's true value and potential for growth, increasing the risk of investment.
5. No Guarantee of Future Listing: Investing in Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares with the expectation of future listing on a public exchange carries the risk that the listing may not occur. This can affect both the liquidity and potential value appreciation of the shares.
6. Company-Specific Risks: Each company has its own set of risks based on its industry, management, financial health, and market position. These risks can significantly impact the performance of your investment in Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares.
UnlistedZone: Pioneering Excellence in India's Unlisted Share Market
UnlistedZone stands as India's fastest-growing and leading marketplace for buying and selling unlisted shares. Over the past 5 years, we have carved a niche in the financial market, website hit user inflows over a 2 million users on our platform since inception. This remarkable journey is underscored by the sheer volume of transactions facilitated through UnlistedZone, which has already surpassed the 300 Crore mark.
At the helm of our success are our esteemed co-founders, Mr. Umesh Paliwal and Dinesh Gupta. Their insights and expertise are regularly sought after by leading financial publications such as MoneyControl, Business Standard, and The Economic Times, particularly for their authoritative views on IPOs and the unlisted market. Our journey over these 5 years has not just been about numbers; it's been about building trust and reliability.
UnlistedZone has established a formidable reputation in the industry, earning the trust and confidence of our users. This trust is our cornerstone, ensuring that new investors can engage with us without the apprehensions of fraud that are often associated with unknown brokers in the market.
At UnlistedZone, we are committed to maintaining the highest standards of transparency and integrity, ensuring that your investment journey is not just profitable but also secure and trustworthy.
Valuation Methodology at UnlistedZone for Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares
At UnlistedZone, we employ a meticulous and strategic approach to valuing Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares, utilizing two primary methods: Benchmark Valuation Based on Latest Funding:
1. Our first step is to examine the most recent funding round for Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts. This method is particularly effective in capturing the latest market sentiment and financial health of the company.
2. Comparison with Listed Peers: In cases where there hasn't been recent funding for Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares, we adopt a comparative approach. This involves identifying a business in the listed market that closely resembles Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares in terms of industry, size, and business model. By comparing and contrasting the two, we can ascertain a fair valuation for Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares, drawing on the market data and performance metrics of its listed counterpart.
Investor Advisory: As experts in the unlisted space, we at UnlistedZone emphasize the importance of thorough risk assessment to all our investors. It's crucial to evaluate all risk parameters carefully before investing in unlisted shares. This due diligence is key to making informed and strategic investment decisions in the dynamic and evolving unlisted market.
"At UnlistedZone, our approach to sourcing Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares involves a strategic and direct method. Primarily, we acquire these shares from two key groups:
1. Employees of the Company: Often, employees of a company receive shares as part of their compensation or through employee stock option plans (ESOPs). Over time, some of these employees may decide to liquidate their holdings for various reasons, such as financial needs or portfolio diversification. We engage with these employees, providing them a platform to sell their shares.
2. Initial Investors: These are the early-stage investors or angel investors who provided capital to the company during its initial phases. As the company grows and evolves, these initial investors might look to sell part or all of their stake in the company. This could be for reasons like capitalizing on their investment, reallocating assets, or other strategic financial decisions.
By connecting with these groups, UnlistedZone ensures a reliable and consistent supply of Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares for our clients. This method not only helps employees and initial investors in liquidating their assets but also provides our clients with access to shares that are not readily available in the public market. It's a win-win for both the sellers and buyers, facilitated efficiently through our platform."
"The Securities and Exchange Board of India (SEBI) does have a regulatory influence on the unlisted market, though it's not as comprehensive as its oversight of the listed markets.
Key aspects of SEBI's involvement in the unlisted space include:
1. Applicable Rules and Regulations: Certain SEBI regulations are indeed applicable to transactions in the unlisted market. This includes the mandatory lock-in period of 6 months, the requirement to pay stamp duty, and depository participant (DP) charges for every transaction. These measures are in place to ensure a certain level of standardization and protection in the unlisted market, similar to those in the listed markets.
2. Lack of Specific Regulation for Unlisted Brokers: As of now, SEBI does not have specific regulations for becoming an unlisted broker. This means that while certain SEBI rules apply to transactions within the unlisted market, the process of becoming a broker in this space is not directly regulated by SEBI. This lack of direct regulation highlights the importance of due diligence by investors when engaging with brokers in the unlisted market.
3. Investor Protection and Transparency: The regulations that do apply, such as the lock-in period and transaction charges, are designed to protect investors and add a layer of transparency to these transactions. They aim to mitigate some of the risks inherent in trading unlisted securities, which typically don't have the same level of public scrutiny and regulatory oversight as listed securities. In summary, while SEBI's regulatory framework does extend to certain aspects of the unlisted market, it does not comprehensively regulate all aspects of it, particularly concerning the accreditation of unlisted brokers. This underscores the need for investors to exercise caution and conduct thorough research when participating in the unlisted market."
"For comprehensive and up-to-date news and information about Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares, we have several platforms to keep you informed. Our website is regularly updated with the latest insights and developments. For real-time updates and engaging discussions, you can join our Telegram channel. Additionally, follow us on Twitter for quick news bites and industry trends. And for more in-depth analysis and informative content, subscribe to our YouTube channel. These resources are designed to provide you with a well-rounded understanding of the unlisted market, ensuring you have access to all the information you need about Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares."