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RATING

RECOMMENDATION

Strong Buy

Business Type

Dominant Leader

  • unlisted stock logo
    MEDI ASSIST HEALTHCARE Unlisted Shares Essentials

ISIN

U74900KA2000PLC027229

Face Value

₹5.00

Total Share

6,88,59,212

Total Income

₹330.41 Cr

Profit After Tax

₹34.56 Cr

Promoter Holding

77.10 %

EPS

₹5.17

Book Value

₹217.30 Cr

Sector

Financials

Sub-sector

Insurance

Cashflow - Operations

₹18.65 Cr

Cashflow - Financing

-₹11.75 Cr

MEDI ASSIST HEALTHCARE Growth

Compounded Sales Growth

  • 17.51%

    1 Year

  • 16.95%

    2 Year

Pro Only

Compounded Profit Growth

  • 31.96%

    1 Year

  • -7.56%

    2 Year

Pro Only

Return On Equity

  • 15.90%

    1 Year

  • 12.25%

    2 Year

Pro Only

About MEDI ASSIST HEALTHCARE

  • Medi Assist Healthcare Services Ltd. is India’s leading Healthtech and InsurTech company focused on administering health benefits across employers, retail members and public health schemes. 
  • They are India’s largest health benefits administrator in terms of revenues and premium serviced for health insurance policies for the financial years 2018, 2019 and 2020.
  • Satish Gidugu is the CEO of the Medi Assist Healthcare Services Ltd.
  • The company has developed a pan-India healthcare provider network, which comprises over 11,000 hospitals across 722 cities and towns. During the FY 2020, they settled 37.7 Lakh claims worth INR 7,899 Cr.
  • The company earned a total income of INR 330 Cr. and a profit after tax of 34 Cr. for FY 20.
  • Mr. Rakesh JunJhunwala invested in Medi Assist Healthcare Services Ltd. in the year 2012 and continue to hold the shares till date.

  • MEDI ASSIST HEALTHCARE Subsidiaries

The company has one subsidiary Medi Assist TPA

  • Medi Assist TPA was incorporated on September 3, 1999 as Medi Assist India Private Limited. 
  • Subsequently, its name was changed to Medi Assist India TPA Private Limited on January 16, 2009. 
  • Its name was changed to Medi Assist Insurance TPA Private Limited on September 2, 2016. 
  • Medi Assist TPA is currently engaged in the business of processing insurance claims as a third-party administrator.


  • MEDI ASSIST HEALTHCARE Revenue Segmentation

  • Motor
  • Health
  • Fire
  • Personal Assets
  • Marine
  • Others
  • MEDI ASSIST HEALTHCARE Product & Services

Products

  • Member Benefits Platform

Member benefits platform is a secure environment that allows members to review their coverage, download documents like benefit schedule and member guide, and gives them access to the provider finder and online claim submission process.

  • Outpatient Benefits Platform

Med-Max is a platform for automated, affordable, and accessible outpatient medical benefits

  • Payer Platforms

Med-Insur partners with payers to help accelerate their health insurance innovation journey. The product offers an end-to-end core administration platform for small and large health plans to modernize their systems at scale and introduce new products quickly.

  • Claims Management Platform

Med-Claim simplifies the claims processes for customers, employees, agents and third parties with an innovative solution to address a common industry problem improving claims service while reducing costs.

  • Healthcare BI/Analytics

Med-Pi

  • Identifies factors and trends that drive losses.
  • Analyze historical and current claims data to ensure that providers are charging for the proper treatments.
  • Improve investment by using payer data-backed evidence to demonstrate and defend the success of a program or strategy

Services

Medi Assist Healthcare Services Ltd. provides services to various stakeholders, which can largely be summed up as follows:

  • To Policy holders

Onboarding

Benefit administration

Hospitalization concierge

Outpatient benefits

Tech Integration

  • To Insurance Companies

Claim management

Access to provider and network rates

  • To Hospitals

Contract rate, discounts and packages

Electronic pre-authorization

Cashless processing

Paperless lifecycle (electronic)


  • MEDI ASSIST HEALTHCARE Industry Overview

Industry Statistics

The insurance industry of India has 57 insurance companies 24 are in the life insurance business, while 34 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. There are six public sector insurers in the non-life insurance segment. In addition to these, there is a sole national re-insurer, namely General Insurance Corporation of India (GIC Re). Other stakeholders in the Indian Insurance market include agents (individual and corporate), brokers, surveyors and third-party administrators servicing health insurance claims

Future Prospects

  • In India, the overall market size of the insurance sector is expected to INR 20,16,000 Cr. in 2020.
  • The life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023. India’s insurance penetration was pegged at 3.76% in FY20, with life insurance penetration at 2.82% and non-life insurance penetration at 0.94%. 
  • The market share of private sector companies in the general and health  insurance market increased from  47.97% in FY19 to 48.03% in FY20. In the life insurance segment, private players held a market share of 33.78% in premium underwritten services in FY20.
  • In FY21 (until February 2021), premium from new business of life insurance companies in India stood at INR 2,29,680 Cr.
  • Gross premiums written of non-life insurers in India reached INR 1,75,572 Cr. in FY21 (between April 2020 and February 2021), from INR 1,76,760 Cr. in FY20 (between April 2019 and February 2020), driven by strong growth from general insurance companies.
  • The government schemes constituted 73% of total lives covered in 2019-2020 and have increased at a CAGR of 11.1% over the period from 2014-2015 to 2019-2020. This can be attributed to the revival of the public health insurance schemes with launch of Ayushman Bharat. Interestingly, due to these launches from the government, the growth of lives covered under the group schemes witnessed the fastest growth of 13.9% CAGR from 2014- 2015 to 2019-2020

MEDI ASSIST HEALTHCARE Awards & Achievements

  • Business Leader of the Year Award by World Leadership Awards, 2021
  • India’s Best TPA by Asia’s Insurance Awards, 2020
  • Top 14 Healthiest Workplaces in India by Arogya World
  • Best HR strategy in line with Business by Karnataka Best Employer Brand Awards, 2020
  • Dream Companies to Work For by Karnataka Best Employer Brand Awards, 2020
  • Certificate of Appreciation for Exemplary Performance
  • FICCI Healthcare Excellence Award, 2019
  • Tatva Annual Awards by ICICI Prudential for Best Service Provider- Tele Underwriting, 2018
  • CIO 200 Change Agents, 2017
  • CIO 100 Award – Oscar of the IT Industry - Information Mastermind
  • Pahal Award by Tata Consultancy Services
  • Gold Medal and "Skoch Award for Excellence" for RGJAY scheme – Maharashtra

MEDI ASSIST HEALTHCARE Strengths

  • Total income has been rising at 2-year CAGR of 17%
  • The company is India’s largest health benefits administrator in terms of revenues and premium serviced for health insurance policies for the financial years 2018, 2019 and 2020.
  • The company has developed a pan-India healthcare provider network, which comprises over 11,000 hospitals across 722 cities and towns. During the FY 2020, they settled 37.7 Lakh claims worth INR 7,899 Cr.
  • In FY 20, They serviced over 7,800 corporate accounts, managed INR 6,243 Cr. of corporate premium representing 24% of the overall corporate health insurance market in India and 36% of the corporate health insurance market serviced by health benefits administrators.
  • They managed INR 7,829 Cr. of health insurance premiums for the financial year 2020 and had market shares of 17% of the private health insurance market and 29% of the private health insurance market serviced by health benefits administrators in India, based on premium under management for the financial year 2020
  • The company has long-term relationships with large corporates and insurance companies.
  • The technology deployed by the company has so far been able to achieve a success rate of 17% in the detection of fraudulent claims during the first nine months of FY21 which resulted in savings of close to ₹ 86 crore for insurers.

MEDI ASSIST HEALTHCARE Shortcomings

  • The company is dependent on a limited number of insurance companies for a significant portion of their revenues. For the FY 2020, their five largest insurance companies based on premium under management contributed 65% of their revenue from operations.
  • The company is dependent on corporate accounts in certain industries for a significant portion of their revenues from operations. For FY 2020, of the total premiums serviced attributable to their 50 largest corporate accounts, corporate accounts in the IT/ITES 62%, and corporate accounts in the BFSI sector contributed 18%.
  • The company’s total expenditure has been increasing at 2-year CAGR of 23%.

MEDI ASSIST HEALTHCARE Opportunities

  • Rising income levels, greater health awareness, increased occurrence of lifestyle diseases and improved access to insurance are key drivers contributing to the growth of healthcare market in India. Compared to other developing nations, India’s per capita healthcare expenditure (USD 73 in 2018) is on the lower side, which is expected to gain momentum with increasing public and private health expenditure along with rising enrolment in healthcare insurance.
  • Over the last four to five years, the out-of-pocket healthcare expenditure as a percentage of current healthcare expenditure has shown a decreasing trend and with increasing health insurance penetration, it is expected to reduce further over the next five years

MEDI ASSIST HEALTHCARE Threats

  • Their business depends on their ability to effectively manage and expand their network of healthcare providers. Their inability to ensure significant volume of business for such providers may adversely impact their ability to maintain preferential pricing arrangements.
  • Their dependence on few clients exposes them to risks associated with their client’s internal management, financial condition and creditworthiness, and major events affecting these clients.
  • The biggest risk that Medi Assist faces is competition. While the industry is crowded with 23 players, a small number own the bulk of the market. As of FY20, there were only four players which generated a revenue of more than ₹ 100 crores, while the remaining six generated revenues in the range of ₹ 45-88 crore. This opens up the possibility of mergers and/or acquisitions.   

MEDI ASSIST HEALTHCARE Rating

  • RECOMMENDATION

    Strong Buy

  • MEDI ASSIST HEALTHCARE Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

Registered Date

07/06/2000

Planify Ticker

MEDIHEALTH

Reg Office: Tower D, 4th Floor, IBC Knowledge Park, 4/1 Bannerghatta Road, Bangalore, Karnataka - 560029

Website: http://www.mediassist.in