Star Health and Allied Insurance Company Limited announced its financial results for the second quarter and first half of FY27, showcasing a 19% year-on-year increase in gross written premium to ₹5,275 crore for Q2 and ₹9,562 crore for H1. The company highlighted its fifth consecutive quarter of improved underwriting performance and a 70% increase in normalized profit after tax for Q2 to ₹390 crore. Retail health market share stood at 30% for the quarter.
Star Health Delivers Robust Q2 and H1 FY27 Performance
Star Health and Allied Insurance Company Limited has reported strong financial and operational results for the second quarter (Q2) and the first half (H1) of the Financial Year 2026-2027. The company announced a significant 19% year-on-year growth in gross written premium (GWP) for Q2, reaching ₹5,275 crore, and a similar 19% growth for H1, totaling ₹9,562 crore. This performance underscores a sustained turnaround in underwriting results, marking the fifth consecutive quarter of improvement.
Key Financial Highlights
The company’s underwriting results showed a positive swing of approximately ₹139 crore in Q2, moving from a loss of ₹40 crore in the previous year to a profit of ₹99 crore. For H1, the improvement was even more substantial, with underwriting results at ₹210 crore compared to a loss of ₹24 crore in H1 FY26, a swing of ₹234 crore. The Combined Insurance Service Ratio (CISR) improved to 98% for Q2 and 97.9% for H1. Profit After Tax (PAT) for the quarter surged by over threefold to ₹265 crore, and for H1, PAT increased by 57% year-on-year to ₹815 crore. Normalized PAT saw a 70% increase in Q2 to ₹390 crore and a 56% increase in H1 to ₹775 crore, with normalized ROE rising to 15.1% in H1 FY27.
Business Performance and Strategy
Star Health’s retail health business GWP sustained its growth momentum, with fresh retail health GWP growing 35% year-on-year for the quarter and 36% year-on-year for the half year. The new-to-insurance mix rose to 93% for the quarter. The company emphasized its focus on disciplined risk selection, portfolio optimization, and its proprietary channels, including a rapidly growing digital D2C channel that saw 137% year-on-year growth in H1. The company also highlighted improvements in customer-focused metrics, with a retail claim settlement ratio of 92.4% for H1 and a renewal ratio of 102%.
Outlook and Regulatory Landscape
Looking ahead to H2 FY27, Star Health anticipates a normalization of headline growth rates as last year’s GST-led growth becomes part of the base. The company expressed confidence in its structural underwriting performance, anchored by its vintage book and multi-year policies. Star Health also commented on the evolving regulatory landscape, welcoming proposed reforms and aligning its business model with anticipated changes, particularly in distribution and expense management.
Source: BSE
