Star Health & Allied Insurance Company Ltd share Price

Star Health is the largest standalone insurer engaged in health insurance segment with relatively superior market share, operating performance.

• Star Health is a market leader in the retail health insurance segment with 32%+ market share, as of December 2021 and 29.8% market share in the number of persons covered (as of FY21).
• Star Health has 768 branches and 12000+ network hospitals, with a presence in 25 states and five union territories.

• Large population base along with massive under penetration provides a long term sustainable growth opportunity. Increased awareness, led by Covid, is likely to act as inflection point. Rising income, product development, medical inflation is expected to pave the way for next leg of growth. We expect insurance penetration to double (from 3.8% in FY21) to 17%, 18% CAGR in total health, retail health premium, respectively, in FY21-31E
• Star Health is a market leader in retail health insurance, with market share in retail GDPI at 31.3%. Going ahead, market share dominance is expected to continue led by focus on products innovation, competitive pricing and strong distribution push. Further, higher proportion of retail business (~88-89%), competitive pricing and strong distribution push to drive growth
• Largest agency channel with ~5.3 lakh agents form a pillar to drive ~77% of business. Focus on agency channel coupled with strategic tie-ups with digital ecosystem partners to enable pedalling healthy growth in premium
• Star Health has consistently delivered combined ratio at 93-95% in FY16-20. Covid led to higher claims resulting in under writing loss, which, we believe, will normalise from FY23E onwards. Strong underwriting, tie-up with hospital will restrict claims while focus on opex (through in-house claim settlement and gradual improvement in efficiency) is seen boosting profitability and return ratios ahead

FY23 Annual Result Announced for Star Health and Allied Insurance Company Ltd.

Star Health and Allied Insurance Company announced FY23 results:

• Registers a net profit of Rs 619 crore for FY23
• Company delivers combined ratio of 95.3% for FY23
• Gross Written Premium of Rs 12,952 crore in FY23
• Appoints Anand Roy as the Chief Executive Officer and Managing Director

Anand Roy, newly appointed Chief Executive Officer and Managing Director of Star Health and Allied Insurance Company said, “I am extremely humbled and also excited about my new role at Star Health. It is indeed a privilege and honour to lead this great organisation into its next phase of success. FY 22-23 has been a good year for us where we saw steady growth q-o-q. We focused on improving our retail market share, lowering our combined operating ratio, growing our channel partners and agent network. The year saw us launch a couple of innovative products which were well received by customers across the country. Our growth strategy also focused on strengthening our presence through branches and increasing our network hospital presence for better customer service. Our combined ratio for FY23 improved to 95.3% versus 117.9% for FY22.”

“Retail health insurance will remain our primary focus for the years ahead. We continue to invest heavily in enhancing our customer experience through product innovation and digitalization. The brand of Star Health is well entrenched in all parts of our country. We will keep identifying new opportunities for growth and expansion and contribute to increasing the penetration of health insurance in India”, added Mr. Roy.

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