Star Health and Allied Insurance Company (STARHEALTH) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked a strategic recalibration with a focus on distribution, underwriting discipline, claims management, customer experience, and operating efficiency.

• Achieved 16% YoY growth in Gross Written Premium (GWP) to ₹20,369 Cr for FY26, covering 2.8 Cr lives as of March 31, 2026.

• Retail health insurance sector saw robust growth, aided by policy support like GST exemption and rising consumer intent.

• Proprietary channels (agency and digital D2C) contributed over 90% of retail business, with digital onboarding at 96%.

• Persistency ratio improved to 99%, and Net Promoter Score (NPS) rose to 62, reflecting enhanced customer satisfaction.

Financial highlights

• Overall GWP increased 17% YoY to INR 6,259 crores in Q4; full-year GWP rose 16% YoY to INR 20,369 crores.

• Underwriting profit for Q4 was INR 186 crores, up 200% YoY; full-year underwriting profit turned positive at INR 206 crores from a loss of INR 165 crores last year.

• Combined ratio improved to 98.8% for FY26; loss ratio decreased to 68.7%.

• Full-year PAT increased 16% YoY to INR 911 crores; normalized PAT (8% yield) rose 45% YoY to INR 1,222 crores.

• Solvency ratio at 2.05x; expense of management ratio at 30.5%.

Outlook and guidance

• Focus remains on sustainable, high-teens growth and mid- to high-teen ROEs, with a digital-first strategy and customer-centric execution.

• Continued investment in technology, analytics, and wellness initiatives to drive efficiency and customer engagement.

• Expectation of further improvement in loss ratios through pricing, portfolio optimization, and preventive care.

• The company will adopt Indian Accounting Standards (Ind AS) from FY27, with a transition date of April 1, 2025.