Star Health and Allied Insurance Company (STARHEALTH) Q4 18/19 earnings summary

Executive summary

• FY19 net profit after tax rose to Rs 18,341 lakh from Rs 17,015 lakh; gross premium written reached Rs 540,129 lakh.

• Management cited a positive outlook, supported by focus on market business, claims-ratio control and expense rationalization.

Financial highlights

• Net premium was Rs 412,871 lakh; net premium earned was Rs 366,237 lakh, versus Rs 319,604 lakh and Rs 273,960 lakh, respectively, in FY18.

• Underwriting profit increased to Rs 11,049 lakh from Rs 4,226 lakh; profit before tax was Rs 26,708 lakh versus Rs 17,120 lakh.

• Net incurred claims rose to Rs 229,759 lakh from Rs 169,201 lakh; net commission was Rs 25,691 lakh versus Rs 13,658 lakh.

• Investment income for policyholders and shareholders was Rs 11,530 lakh and Rs 8,012 lakh, respectively; net investment yield was 7.54%, versus 8.36% in FY18.

Outlook and guidance

• Outlook was positive, with continued emphasis on market business, claims-ratio control and expense rationalization.