Star Health and Allied Insurance Company (STARHEALTH) Q4 12/13 earnings summary

Executive summary

• FY13 gross premium fell to Rs 86,021 lakh from Rs 108,506 lakh, primarily as government business declined; the net loss narrowed to Rs 12,562 lakh from Rs 14,754 lakh.

• Market-segment gross premium grew 59.27% YoY to Rs 80,718 lakh, while the outlook was described as positive with a focus on market business, claims control and expense rationalization.

Financial highlights

• Net premium was Rs 61,384 lakh vs Rs 80,991 lakh; net earned premium was Rs 51,123 lakh vs Rs 80,851 lakh.

• Operating loss improved to Rs 12,951 lakh from Rs 16,101 lakh; loss before tax was Rs 12,562 lakh vs Rs 15,445 lakh.

• Net loss was Rs 12,562 lakh vs Rs 14,754 lakh; basic and diluted EPS were both -Rs 4.47 vs -Rs 6.78.

• Operating expenses rose to Rs 31,864 lakh from Rs 20,278 lakh; net incurred claims were Rs 32,297 lakh vs Rs 77,423 lakh.

Outlook and guidance

• Outlook was positive, supported by greater emphasis on market business, control of incurred claims and expense rationalization.