Star Health and Allied Insurance Company (STARHEALTH) Q2 25/26 earnings summary

Executive summary

• Achieved up to 20% year-over-year growth in gross written premium (GWP) to INR 8,809 crore for H1 FY2026, with retail health GWP up 17% and strong renewal persistency at 98% by value.

• Retail business forms up to 95% of the total book, with group portfolio reduced to as low as 1.5% of GWP.

• Maintained retail health market leadership with up to 33% share and robust digital channel growth at 47% year-over-year.

• Profit after tax for H1 FY2026 at INR 518 crore, up 21% year-over-year.

• Strong digital adoption with up to 91% policies sourced digitally and 75% digital premium collection.

Financial highlights

• Combined ratio improved to 100.3% for H1 FY2026 from 102.1% last year; Q2 at 101% versus 104.8% last year.

• Net incurred claim ratio for H1 FY2026 at 70.6%, down 30 bps year-over-year.

• Expense ratio improved to 29.7% for H1 and 29.3% for Q2 FY2026.

• Investment income at INR 752 crore with an 8.3% yield.

• Return on equity (non-annualized) improved to 5.8% in H1 FY2026.

Outlook and guidance

• Expect further improvement in loss ratios and profitability due to ongoing portfolio recalibration, digital investments, and annual repricing.

• No price increase planned for GST impact; regular price hikes will address medical inflation.

• Focus on expanding digital channels, agency network, and customer-centric wellness initiatives.

• Confident in achieving long-term ROE improvement and combined ratio targets by FY2028.

• Results are not indicative of full-year performance due to seasonality; higher claims expected during monsoon.