Star Health and Allied Insurance Company Limited has announced its financial results for the first quarter of FY27. The company reported a 25% year-on-year increase in profit after tax, reaching ₹550 crore. Gross return premium saw a robust 19% YoY growth to ₹4,287 crore on a 1/N basis. Underwriting profit also significantly improved, reaching ₹111 crore, marking the fourth consecutive quarter of core underwriting profitability enhancement.
Star Health Announces Strong Q1 FY27 Financial Performance
Star Health and Allied Insurance Company Limited has released its financial results for the first quarter of the Financial Year 2026-27 (Q1 FY27), showcasing substantial growth across key financial metrics. The company reported a profit after tax of ₹550 crore, marking a significant 25% increase compared to the same period last year. This performance underscores the company’s continued focus on profitable growth and operational efficiency.
Key Financial Highlights for Q1 FY27
- Gross Return Premium: Increased by 19% YoY to ₹4,287 crore on a 1/N basis, and by 19% YoY to ₹4,672 crore on an N basis.
- Fresh Retail Health GWP: Grew by 37% YoY to ₹730 crore on a 1/N basis, and by 35% YoY to ₹1,039 crore on an N basis.
- New-to-Insurance Mix: Stood at 94% for Fresh Retail Business, up from 90% in Q1 FY26.
- Underwriting Profit: Improved to ₹111 crore in Q1 FY27, a significant jump from ₹16 crore in Q1 FY26. This marks the fourth successive quarter of improvement in core underwriting profitability.
- Combined Insurance Service Ratio (CISR): Improved by 1.7% from 98.7% in Q1 FY26 to 97% in Q1 FY27.
- Investment Income: Increased by 10% YoY to ₹644 crore.
- Profit After Tax: Increased by 25% YoY to ₹550 crore. Under a normalized framework, profit after tax increased 44% YoY to ₹386 crore, with annualized ROE improving to 15.6% in Q1 FY27.
Business and Distribution Updates
Star Health continues to focus on building a diversified and granular retail franchise, with a disciplined approach to risk selection. Proprietary channels, including agency and digital D2C, contributed over 90% of the overall retail business. The company scaled its agency network, adding approximately 20,000 new agents in the quarter, bringing the total to 8.5 lakh agents, with a 19% YoY improvement in agent productivity. Digital D2C remains the fastest-growing profitable channel, with 74% of fresh business originating from its platform, and D2C fresh business grew 142% YoY.
Customer Focus and Technology Investments
Customer-centric metrics continue to show improvement, with the retail claim settlement ratio increasing by 1% to 91% for Q1 FY27. The company level NPS improved by 12 points to 65 points. Investments in digital and AI are key strategic initiatives, focusing on superior risk selection, faster customer service, and lower cost-to-serve. The company’s proprietary data and in-house analytical expertise provide a significant competitive advantage.
Future Outlook
Star Health is focused on three strategic priorities: driving sustainable growth and expanding health insurance penetration, enhancing core underwriting profitability through rigorous portfolio management, and leveraging technology for customer centricity. The company believes the retail health insurance market in India will grow significantly in the next 20 years, and Star Health aims to remain a leading player.
Source: BSE
