Star Health and Allied Insurance Company (STARHEALTH) Q4 16/17 earnings summary

Executive summary

• Gross premium reached Rs 296,005 lakh in FY17; profit after tax was Rs 11,794 lakh, down from Rs 13,658 lakh in FY16. Management cited market-business focus, claims control and expense rationalization as supports for a positive outlook.

• The business is focused on health insurance, with operations entirely in India; market-segment gross premium was Rs 293,905 lakh and RSBY premium was Rs 2,100 lakh.

Financial highlights

• Net premium was Rs 228,316 lakh vs Rs 153,975 lakh; net earned premium was Rs 191,145 lakh vs Rs 151,387 lakh.

• Net incurred claims were Rs 115,671 lakh vs Rs 81,455 lakh; operating expenses were Rs 63,582 lakh vs Rs 49,824 lakh.

• Underwriting profit was Rs 8,608 lakh vs Rs 24,853 lakh; profit before tax and net profit were each Rs 11,794 lakh vs Rs 13,658 lakh.

• Total income was Rs 234,556 lakh vs Rs 160,308 lakh; shareholder investment income was Rs 3,815 lakh vs Rs 1,786 lakh.

Outlook and guidance

• Management described the outlook as positive, citing emphasis on market business, control of incurred claims and expense rationalization.