Star Health and Allied Insurance Company (STARHEALTH) Q4 14/15 earnings summary

Executive summary

• FY2014-15 gross premium rose 35% to ₹146,919 lakh; net loss widened to ₹14,005 lakh from ₹9,332 lakh YoY. Management cited market-business focus, claims control and expense rationalization as priorities supporting a positive outlook.

• Market-segment gross premium grew 37% to ₹144,158 lakh; RSBY gross premium was ₹2,762 lakh.

Financial highlights

• Net premium was ₹125,381 lakh vs ₹84,353 lakh; net earned premium was ₹101,793 lakh vs ₹67,540 lakh YoY.

• Net incurred claims rose to ₹65,106 lakh from ₹45,395 lakh; operating expenses increased to ₹45,583 lakh from ₹33,186 lakh.

• Underwriting loss widened to ₹14,798 lakh from ₹10,456 lakh; reported net loss was ₹14,005 lakh vs ₹9,332 lakh.

• Operating cash flow was ₹14,744 lakh vs ₹7,692 lakh; share-capital proceeds were ₹9,233 lakh vs ₹948 lakh.

Outlook and guidance

• Outlook was described as positive, conditional on prioritizing market business while controlling incurred claims and rationalizing expenses.