Star Health and Allied Insurance Company (STARHEALTH) Q4 19/20 earnings summary

Executive summary

• FY20 gross premium grew 27.1% to Rs 686,514 lakh; net profit after tax rose to Rs 26,330 lakh from Rs 18,341 lakh.

• Positive outlook supported by market focus, claims-ratio and expense controls, and digital infrastructure, despite the COVID-19 situation.

Financial highlights

• Net premium earned was Rs 468,409 lakh versus Rs 366,237 lakh; net claims incurred rose to Rs 308,743 lakh from Rs 229,759 lakh.

• Underwriting profit increased to Rs 15,493 lakh from Rs 11,049 lakh; profit before tax was Rs 40,621 lakh versus Rs 26,708 lakh.

• Investment income was Rs 29,353 lakh; gross investment yield was 7.55%.

• Basic EPS was Rs 5.49 versus Rs 4.03; diluted EPS was Rs 5.38 versus Rs 3.97.

Outlook and guidance

• Outlook described as positive, with continued emphasis on market business, incurred-claims control, expense rationalization, and digital infrastructure.

• During lockdown, premium collection and claims settlement continued with limited operations; full operations and policyholder service were expected to resume post-lockdown.