Star Health and Allied Insurance Company (STARHEALTH) Q2 26/27 earnings summary

Executive summary

• Underwriting improvement continued for a fifth consecutive quarter; Q2 and H1 FY27 returned underwriting profits and reported PAT rose YoY.

• Strategy emphasizes disciplined risk selection, proprietary distribution, digital engagement, pricing, fraud controls and wellness initiatives.

Financial highlights

• Q2 GWP rose 19% YoY to INR 5,275 crore; H1 GWP reached ₹9,56,209 lakh, up 19.09%. Retail fresh GWP grew 35% in Q2 and 36% in H1 to ₹1,630 crore.

• Insurance revenue was ₹5,07,377 lakh in Q2 versus ₹4,39,578 lakh; H1 revenue was ₹9,93,038 lakh versus ₹8,64,085 lakh.

• Underwriting profit was INR 99 crore in Q2 versus a INR 40 crore loss, and INR 210 crore in H1 versus a INR 24 crore loss.

• PAT was ₹26,481 lakh in Q2 versus ₹7,958 lakh and ₹81,454 lakh in H1 versus ₹51,776 lakh; H1 PBT rose 56% to ₹1,093 crore.

• Normalized PAT at an 8% investment yield rose 70% to INR 390 crore in Q2 and 56% to INR 775 crore in H1; H1 investment income increased 21% to ₹911 crore.

Outlook and guidance

• Fresh business growth ambition is 20%+ over the long term; management hopes to sustain that rate in FY27 as headline growth moderates against the GST-led base.

• Targets include improving combined ratio and ROE over time, with ROE ambition moving from mid-teens toward high teens; loss cost held at mid-single-digit levels.

• Pricing remains tied to portfolio performance; products may be repriced where loss ratios require, and expense plans will align with final EOM rules.

• Technology priorities include automation across sales, servicing, claims and underwriting, supported by proprietary data and AI/ML analytics.