Star Health and Allied Insurance Company (STARHEALTH) Q4 23/24 earnings summary

Executive summary

• FY 2023-24 delivered GWP of ₹15,254.45 crore, up 18% YoY, and PAT of ₹845.01 crore, up 37%; IFRS ROE was 17.7%.

• Claims servicing remained a key operating strength: 1.75 million claims settled during the year, ₹89,136 million paid, and 94.8% of claims settled in under two hours.

• Strategic priorities include profitable growth, digital-first services, improved product mix, wider distribution, technology investment and cost optimisation in FY 2024-25.

Financial highlights

• GWP was ₹15,254.45 crore vs ₹12,952.47 crore in FY 2022-23; net earned premium was ₹12,938.27 crore vs ₹11,261.59 crore.

• PAT rose to ₹845.01 crore from ₹618.59 crore; PBT reached ₹1,128.85 crore vs ₹826.40 crore.

• Net claims incurred were ₹8,599.94 crore vs ₹7,320.40 crore; operating expenses were ₹2,394.42 crore vs ₹2,053.81 crore.

• Investment income increased to ₹1,084.10 crore from ₹834.56 crore; investment assets were ₹15,490.89 crore vs ₹13,413.10 crore.

• Net worth was ₹6,339.24 crore vs ₹5,430.13 crore; total assets were ₹17,767.74 crore vs ₹15,226.11 crore.

Outlook and guidance

• FY 2024-25 priorities are growth with profitability, a digital-first ecosystem, better product mix, expanded distribution, technology investment and cost optimisation.

• Plans include 1,000 Sales Manager Stations in remote locations during FY 2024-25; of 194 branches planned over five years, 153 are targeted for populations below one lakh.

• India's health insurance market is projected to reach USD 30 billion by 2030; low penetration, particularly in rural areas, is viewed as a significant expansion opportunity.