- 02 May 2024
- ICICI Securities
Star Health Insurance reported healthy performance in Q4FY24
STARHEALTH - 549 Change: 6.55 (1.21 %)News: Star Health Insurance reported healthy performance in Q4FY24 with market share maintained at 33% in retail health insurance market. While premium growth continued to remain steady at 18% YoY to ₹4968 crore, led by traction in customer accretion amid focus on strengthening distribution. Combined ratio came at 92.7% in Q4FY24 (claim ratio at 64.1%, expense ratio at 30.7%) vs 91.3% in Q4FY23. For FY24, combined ratio remained at 96.7% resulting in under-writing profit. Investment income increased 34% YoY to ₹290 crore (yield at ~8%) which resulted in earnings of ₹142 crore, up 40% YoY. Investment assets have increased to ~₹15,500 crore with leverage remaining steady at 2.4x.
Views: Continued strategy to maintain market share in retail healthy insurance market and focus on faster growth in SME segment with strengthening of distribution capabilities should aid premium growth trajectory ahead.
Impact: Neutral