Star Health has reported a 21% YoY increase in profit after tax (PAT) for H1 FY2026, reaching ₹518 crore. Gross written premium stood at ₹8,809 crore, with retail health GWP rising by almost 17% to ₹8,332 crore. The company maintains a retail health market share of 32%. The net incurred claim ratio improved to 70.6%. Digital channel premiums grew 47% year-on-year.
Financial Performance Highlights
Star Health announced its financial results for H1 FY2026, showcasing significant growth and improvements across key metrics:
- Gross Written Premium (GWP): ₹8,809 crore, representing a 12% YoY growth.
- Retail Health GWP: Increased by almost 17% to ₹8,332 crore.
- Profit After Tax (PAT): Rose to ₹518 crore, a 21% YoY increase.
- Net Incurred Claim Ratio: Improved to 70.6%.
- Retail Health Market Share: Maintained at 32%.
Business Segment Performance
The company highlighted the performance of its key business segments:
- Retail Health: GWP increased by almost 17%, driven by a 24% growth in fresh retail premiums.
- Digital Channel: Continued strong growth, with fresh premium growth of 47%.
- Agency Vertical: Remained a strong contributor, with almost 20% growth on fresh business.
Key Strategic Initiatives
Star Health emphasized its strategic focus on several key areas:
- Portfolio Recalibration: Fully exited the unprofitable group employer-employee portfolio.
- Operating Costs: Reduced operating costs, improving the expense ratio to 29.7% from 31.1%.
- Digital Transformation: Launched a new claims platform and agency app to enhance digital experience.
- Focus on Profitable Growth: Continued focus on preferred geographies and products meeting ROE thresholds.
Q2 FY2026 Financials
Key metrics for the second quarter of FY2026 include:
- Underwriting Loss: ₹43 crore compared to ₹178 crore in Q2 FY2025.
- Combined Ratio: 101% compared to 104.8% in Q2 of the previous year.
- Claim Ratio: 71.8% versus 73.7% in Q2 of last year.
- Profit After Tax: ₹79 crore impacted by MTM loss.
Other Updates
- The company’s investment book yielded 8.3% including MTM gains on an IFRS basis for H1 FY2026.
- Positive tailwinds from GST exemption on retail health indemnity policies.
- Focus on fraud detection models that delivered savings growth of almost 35% YoY.
Source: BSE
