Mixed result for Medi assit healthcare services

Medi Assist Healthcare Services, a third-party administrator (TPA) for insurance firms, recently listed on the stock market, had a mixed performance in the third quarter of the fiscal year 2024 (Q3 FY24). Although revenue increased by 32% compared to the previous year, net profit remained almost unchanged from Q3 FY23 due to higher costs related to acquisitions and the amortization of intangible assets. The EBITA margin decreased due to costs associated with the acquisition of Raksha TPA, which Medi Assist acquired last year.

Medi Assist acquired Medvantage in January 2023 and Raksha in August 2023. The full integration of these two entities is expected to contribute to the company’s growth. According to management, it will take approximately 3-4 quarters to fully realize the benefits of these acquisitions.

Medi Assist serves insurance companies through its wholly-owned subsidiaries — Medi Assist TPA, Medvantage TPA, and Raksha TPA.The total premium managed by Medi Assist increased to Rs 14,163 crore in the first nine months of FY24, a 36% increase year-on-year. The majority of this premium (87%) comes from group policies, which grew by 35% year-on-year. The company is also focusing on the retail health segment, which grew by 45% year-on-year.As of September 2023, there are 16 TPAs providing services to public and private health insurance companies. Medi Assist leads the industry in terms of total premium managed by TPAs.

Its market share of the industry’s total health insurance premium (group and retail) was 20% as of December 2023, an increase of 230 basis points year-on-year. In the group business, its market share increased by 29.3%, a growth of 300 basis points year-on-year, while the market share in the retail segment decreased by 110 basis points to 6.3%.