Star Health and Allied Insurance Company (STARHEALTH) Q1 24/25 earnings summary

Executive summary

• Achieved 18% YoY growth in gross written premium (GWP) for Q1 FY25, reaching INR 34,759 million, and maintained leadership in health insurance with a 31% market share and a diversified network of 718k agents and 887 branches.

• Focused on profitable growth, customer centricity, and digital transformation, with 72% of policies issued digitally and 25% growth in digital channels.

• Expanded rural presence with a 40% YoY increase in rural agents and 1,319 sales manager stations.

• Launched home healthcare services in 50+ cities at no extra premium, partnering with four providers.

• Board approved unaudited standalone financial results for Q1 FY25 and reappointment of the Managing Director & CEO for five years from December 16, 2024.

Financial highlights

• GWP for Q1 FY25 was INR 34,759 million, up 18% YoY; profit after tax was INR 3,189 million, up 11% YoY; investment income was INR 2,953 million with a 7.5% yield.

• Combined ratio increased to 99.2% in Q1 FY25 from 97.8% in Q1 FY24; claims ratio at 67.6% (vs 65.4% YoY); expense ratio at 31.6% (vs 32.4% YoY).

• Solvency ratio stood at 2.29x (regulatory minimum 1.5x); investment assets at INR 158 billion.

• Earnings per share (basic) for Q1 FY25 was ₹5.45, compared to ₹4.95 in Q1 FY24.

• Operating profit for Q1 FY25 was ₹31,207 lakhs, up from ₹29,160 lakhs in Q1 FY24.

Outlook and guidance

• Targeting to double GWP to INR 30,000 crores and triple PAT to INR 2,500 crores by FY28.

• Price hikes planned for ~30% of portfolio, with expected realized hike of 4% overall.

• Continued focus on expanding digital and alternate distribution channels, with 25% growth in both banca and digital segments.

• Monitoring regulatory changes and ready to adjust pricing and product features as needed.

• Financial results for the quarter are not indicative of full-year performance due to seasonality in the health insurance industry.