Star Health and Allied Insurance Company (STARHEALTH) Q1 26/27 earnings summary

Executive summary

• Celebrated 20 years of operations, serving over 28 million lives and maintaining leadership in retail health insurance with a focus on sustainable, value-driven growth.

• Achieved 19% YoY growth in gross written premium (GWP) to ₹4,287 Cr for Q1 FY27, with retail fresh GWP up 37% to ₹730 Cr, driven by proprietary channels and digital D2C.

• Underwriting profit improved to ₹111 Cr from ₹16 Cr YoY, reflecting disciplined portfolio management.

• Customer persistency reached 102% and Net Promoter Score (NPS) increased to 65.

• Board approved reclassification of certain promoter group shareholders to public category, subject to regulatory approvals.

Financial highlights

• Gross written premium for Q1 FY27 was ₹4,28,713 lakhs, up from ₹3,60,547 lakhs in Q1 FY26.

• Insurance revenue for Q1 FY27 grew 13% YoY to ₹4,917 Cr.

• Profit after tax (PAT) for Q1 FY27 was ₹550 Cr, up 25% YoY; normalized PAT (at 8% yield) up 44% YoY to ₹386 Cr.

• Underwriting profit for Q1 was INR 111 crore, up from INR 16 crore YoY, marking the fourth consecutive quarter of improvement.

• Combined Insurance Service Ratio (CISR) improved to 97.0% from 98.7% in Q1 FY26.

• Investment income for Q1 FY27 was ₹644 Cr, up 10% YoY.

Outlook and guidance

• Insurance revenue growth expected to gradually rise to 15-16% through FY 2027 and further in FY 2028.

• Focus on sustainable, profitable growth through disciplined risk selection and portfolio management.

• Reinsurance costs expected to decline further, benefiting from expiring treaties and ongoing negotiations.

• Financial results reflect seasonality, with higher claims expected during monsoon and premium income typically higher at fiscal year-end.