India · Delayed Price · Currency is INR Star Health and Allied Insurance Company Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw strong retail growth, improved underwriting, and digital advances, with normalized PAT up 45% YoY and ROE at 13.1%. Strategic focus remains on profitable growth, digitalization, and risk management amid regulatory and market shifts.
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Strong top-line and profit growth driven by improved combined and loss ratios, digital and agency channel expansion, and disciplined execution. Retail health leadership maintained, with robust investment yields and a focus on sustainable ROE amid regulatory and inflationary challenges.
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Gross written premium grew 12% year-over-year to INR 8,809 crore, with retail health GWP up 17% and persistency at 98%. Loss ratios and expense ratios improved, while digital and agency channels drove growth. GST exemption boosted demand, and profitability rose 21% year-over-year.
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Q1 FY26 saw 13% GWP growth and 44% PAT increase, driven by strong retail and digital channels, improved claims ratios, and ongoing cost discipline. Strategic product innovation and risk-based pricing support profitability amid healthcare inflation.
Fiscal Year 2025
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Maintained retail health insurance leadership with 33% market share and 25% fresh GWP growth, but faced elevated claim ratios and lower profits due to higher frequency and severity of claims. Strategic repricing, digital initiatives, and regulatory reforms are expected to support future profitability.
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Strong nine-month FY25 growth in GWP and fresh business, with robust digital and agency expansion, but elevated claim ratios and regulatory changes impacted combined and expense ratios. Price hikes and product innovation are expected to support future improvement.
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Strong growth in GWP and digital channels was offset by higher claims ratios due to medical inflation and seasonal factors. Price hikes are being implemented across much of the portfolio, and medium-term targets for doubling GWP and tripling profit by FY28 are maintained.
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GWP grew 18% YoY to INR 3,477.76 crores, with PAT up 11% YoY to INR 319 crores. Agency remains the main channel, but banca, corporate, and digital segments are growing faster. Claims ratio rose to 67.6% due to higher medical case frequency and wellness spend.