Care Health Insurance Rs.100 Crore NCDs Allotted At 10% Coupon

TL;DR

• Care Health Insurance has allotted Rs.100 crore of unsecured, subordinated NCDs at 10% coupon maturing September 18, 2026, listing on NSE’s debt segment from September 22, 2026.

• The instruments carry a 10-year tenor (maturing 2036) with a call option exercisable after 5 years, and count as regulatory Subordinated Debt under IRDAI norms.

• Interest payments are non-cumulative and conditional on solvency margins, a missed payment isn't a default but does restrict shareholder dividends that year.

• The raise comes as Care Health's FY26 GWP grew 22.1% YoY to Rs.9,805 crore, even as PAT fell over 92% to Rs.12 crore amid rising claims and a 107% combined ratio.

• India Ratings upgraded the insurer to  IND AA Stable in January 2026. In August 2026, the RBI disapproved the demerger of Religare Enterprises’ financial services arm (63.2% stake) and the company continues to operate as a single entity.

Introduction

Care Health Insurance Limited, a material subsidiary of Religare Enterprises, has issued non-convertible debentures (NCDs) aggregating Rs.100 crore at a fixed coupon rate of 10% per annum. The issuance, completed on September 18, 2026, bolsters the standalone health insurer’s capital base as it continues to ramp up in the competitive health insurance space in India.

The debentures are unsecured, subordinated, listed, taxable, rated, redeemable, non-cumulative instruments and are fit to be termed as “Subordinated Debt” as per IRDAI regulations and SEBI’s NCS (Non-Convertible Securities) Regulations. This move comes at a time when Care Health Insurance is reporting strong premium growth alongside rising claims pressure, and while its parent Religare Enterprises navigates a major corporate restructuring.

Share Price-Care Health Insurance 

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Key Terms and Issue Structure-Care Health Insurance NCD

Care Health Insurance issued 10,000 debentures with the face value of Rs.1,00,000 each. This is at par by way of private placement in dematerialised form.

Redemption and Interest Conditions

Interest on these debentures is paid annually and charged to the profit and loss account, but payment is conditional on IRDAI's solvency norms. Care Health Insurance is not obligated to pay interest if doing so is prohibited by law, would result in a net loss, would widen existing losses, or would push the solvency margin below the Control Level of Solvency.

Importantly, any missed interest payment is non-cumulative and does not trigger a default event, though it does restrict dividend payouts to equity shareholders during that period . This structure is typical of subordinated debt used by insurers to shore up regulatory capital while limiting downside risk to the issuer during stressed periods.

Why Care Health Insurance NCD Matters-Business & Rating Context

The Rs.100 crore raise is part of a larger financial picture at Care Health Insurance:

1.Premium growth is still strong

Gross Written Premium (GWP) , Care Health reported a GWP of Rs.9,805 crore in FY26, growing at 22.1% YoY over Rs.8,033 crore in FY25. Some industry estimates for the wider FY26 GWP figure, including group business, put the number even higher at approximately Rs.11,417 crore, up around 24%.

2.Profitability came under pressure 

Despite premium growth, Care Health's Profit After Tax fell sharply to Rs.12 crore in FY26 from Rs.155 crore in FY25, a decline of over 92%, as rising claims and a higher combined ratio (107%, up from 103%) squeezed margins.

3.Credit rating has actually improved 

In January 2026, India Ratings and Research upgraded the issuer rating and the subordinated debt rating of Care Health Insurance to 'IND AA-'/Stable from 'IND A+'/Stable, noting the company’s improved financial flexibility even as underwriting profitability softened.

4. Parent company context 

Religare Enterprises has an approx. 63.2% stake in Care Health Insurance. Religare had sought to demerge its financial services business (lending, brokerage, investment services) into a separate entity called Religare Finvest, while retaining its stake in Care Health. The RBI had rejected the demerger earlier without giving any reasons. It implies that Care Health is under the existing Religare Enterprises structure for now and not under a de-merged insurance.

5. Trend of deleveraging 

Not even prior to this fresh NCD issuance, Care Health had paid off a separate borrowing of Rs.100 crore during FY26 indicating active balance sheet management.

Conclusion

Care Health Insurance NCD of Rs.100 crore subordinated NCD issue with a 10% coupon highlights the insurer’s continued dependence on debt capital to boost its solvency margin, despite strong premium growth but declining underwriting profitability. 

The 10-year call-protected structure gives the company flexibility, but the real story is the difference between the improved credit rating upgraded to IND AA- in January 2026 and the sharply lower FY26 profits.

This fundraise is a sign of steady and incremental capital management rather than a one-off event tied to any imminent corporate change as Care Health Insurance is firmly anchored within the existing group structure and the parent, Religare Enterprises, has restructuring plans stalled after the RBI rejected its financial-services demerger.

FAQ’s

What is the interest rate of the latest NCDs of Care Health Insurance?

The debentures carry a fixed coupon rate of 10% per annum, paid annually, subject to IRDAI solvency margin conditions.

What is the total size of this NCD issuance?

Care Health Insurance has raised Rs.100 crore through issuance of NCDs by way of private placement in the form of 10,000 debentures each of face value of Rs.1,00,000.

When do these NCDs mature and is there an early exit option?

The debentures are for a period of 10 years and mature on 18-Sep-2036. However, Care Health Insurance holds a call option to redeem them after 5 years, and annually thereafter.

Where will these debentures be listed?

The NCDs will be listed on the NSE Debt Segment on 22nd September, 2026.

Are these NCDs secured or unsecured?

They are Unsecured, Subordinated, Listed, Taxable, Rated, Redeemable, Non-Cumulative, Non-Convertible Debentures classified under “Subordinated Debt” as per IRDAI and SEBI NCS Regulations.

What happens if Care Health Insurance cannot pay interest in a given year?

Where an interest payment would breach solvency requirements, result in a net loss or an increased net loss, or be otherwise prohibited by law, the company may skip the interest payment. Since the instrument is non-cumulative, this does not count as a default, though equity dividend payments get restricted during that period.

What is Care Health Insurance's current credit rating?

India Ratings and Research upgraded Care Health Insurance’s issuer and subordinated debt rating to ‘IND AA-’Stable from ‘IND A+Stable’ in January 2026.

Who owns Care Health Insurance?

Care Health Insurance is a subsidiary of Religare Enterprises Limited with 63.2% stake.

How has Care Health Insurance performed financially in FY26?

Care Health Insurance got GWP up 22.1% YoY at Rs.9,805 crore. But the profitability hit hard as PAT fell 92% to Rs.12 crore.