Star Health and Allied Insurance Company (STARHEALTH) Q4 13/14 earnings summary

Executive summary

• Gross premium rose to Rs 109,107.84 lakh from Rs 86,021.35 lakh; net loss narrowed to Rs 9,332.36 lakh from Rs 12,561.54 lakh.

• Management cited greater emphasis on market business, control of claims and expense rationalization as the basis for a positive outlook.

Financial highlights

• Net earned premium was Rs 67,539.50 lakh versus Rs 51,122.86 lakh; net incurred claims were Rs 45,394.56 lakh versus Rs 32,297.33 lakh.

• Underwriting loss narrowed to Rs 10,456.31 lakh from Rs 12,951.27 lakh; net investment income for policyholders was Rs 2,635.17 lakh versus Rs 1,404.83 lakh.

• Other policyholder income was Rs 1,616.06 lakh, recovered from Aarogyasri Trust for amounts charged off in earlier years.

• Basic and diluted EPS improved to a loss of Rs 2.82 per share from Rs 4.47; net loss was Rs 9,332.36 lakh versus Rs 12,561.54 lakh.

Outlook and guidance

• Outlook was described as positive, supported by market-business focus, incurred-claims controls and expense rationalization.