- 10 Nov 2022
- ICICIdirect Research
STAR HEALTH WITNESS IMPROVEMENT IN MARKET SHARE
STARHEALTH - 462 Change: -0.35 (-0.08 %)News:
Modest business growth, though market share witnessed improvement. Operational performance healthy with downward trending claim ratio. Gross written premium (GWP) was up by 10.7% YoY (up 29.6%QoQ due to seasonality) to Rs3193 crore. Growth from retail health segment was higher than overall GDPI growth at 21.1% YoY (1HFY23) and this segment formed 93.6% of total GDPI premium. Net written premium (NWP) was up by 11.3% YoY while earned premium growth was higher at 15.6% YoY to Rs2795 crore, indicating higher flow from previously written policies. Combined ratio witnessed improvement, underwriting loss came at Rs13.1 crore. Total float was up 36% YoY to Rs11700 crore and investment income (shareholder + policyholders) came in at Rs83.7 crore, down 71% YoY. Thus, Star Health posted a net profit of Rs43.9 crore, versus a loss of Rs170.5 crore YoY
View:
Star Health’s leadership in retail health segment with sustainable long term growth opportunity and gradual improvement operational performance bodes well. However, revival in business growth to drive valuation ahead
Impact:
Neutral