Star Health and Allied Insurance has announced a significant financial turnaround for FY26, marked by an underwriting profit of Rs. 206 crore compared to a loss of Rs. 165 crore in the previous fiscal year. The company achieved a 16% YoY growth in GWP, crossing the Rs. 20,000 crore milestone. Despite a short-term marked-to-market loss in Q4, the company’s focus on underwriting discipline and digital integration has bolstered operational efficiency and profitability.
Financial Performance Highlights
Star Health delivered robust growth in FY26, with Gross Written Premium (GWP) reaching Rs. 20,369 crore, representing a 16% year-on-year increase. A standout achievement for the year was the transition from a full-year underwriting loss of Rs. 165 crore in FY25 to an underwriting profit of Rs. 206 crore in FY26. Furthermore, the company reported a Profit After Tax (PAT) of Rs. 911 crore, up 16% YoY.
Strategic Operating Metrics
The company’s focus on portfolio recalibration and risk-first underwriting led to a notable improvement in key operating metrics. The combined ratio improved to 98.8%, and the loss ratio declined to 68.7% for the full fiscal year. Growth was driven by strong demand in the retail segment, with new-to-insurance customers accounting for 93% of fresh premiums. Additionally, digital adoption has reached new heights, with 95% of fresh premiums collected through digital channels.
Future Outlook and Strategic Focus
Looking ahead to FY27, Star Health remains committed to its strategy of building a granular, high-growth retail franchise. Key focus areas include expanding its agent network towards the 1 million mark over the next two years, enhancing home healthcare and telemedicine utilization to manage claims frequency, and leveraging data-driven analytics to maintain underwriting discipline. By prioritizing profitable segments and maintaining a digital-first mindset, the company aims to deliver sustainable, value-accretive growth while targeting mid-to-high teen Return on Equity (ROE).
Source: BSE
