Star Health and Allied Insurance Company Ltd (Star Health), a prominent player in the retail health insurance sector, has released its financial results for the fourth quarter of 2023 (Q4 2023) and the fiscal year 2024 (FY24).
The company reported a profit of Rs 845 crore for the fiscal year, a 37% increase compared to the previous year.
Gross written premium (GWP) for the year grew 18% to Rs 15,254 crore. In the fourth quarter alone, GWP reached Rs 4,968 crore, an 18% year-on-year increase, while profit for the quarter hit Rs 142 crore, a 40% year-on-year rise.
The company’s combined ratio was 96.7% for the year and 92.7% for the fourth quarter. The claim ratio stood at 66.5% for the year and 64.1% for the quarter. The expense of management ratio fell to 30.7%, below the regulatory limit of 35%.
Star Health’s growth was driven by strong demand for retail health insurance, supported by its extensive agency network, digital sales channels, and partnerships with financial institutions. Its underwriting profits also grew, thanks to robust risk management.
The company’s market share among general insurers increased by 22 basis points to 5.26%, while its share in the retail health insurance sector remained steady at 33%. Cashless claims payout improved to 87% of total claims, up from 80% in the previous year.
The company also expanded its distribution network, adding 16,000 agents in the fourth quarter and 75,000 agents in the fiscal year, bringing its total agent count to 701,000. Its distribution channels were also bolstered by 881 branch offices and 14,295 network hospitals, enhancing its pan-India coverage.
Commenting on the latest results, Star Health MD and CEO Anand Roy emphasised the company’s focus on risk management, profitability, and growth.
“We at Star Health made a conscious journey of putting risk-first and growth later, which helped us in carving a path towards sustainable secular growth. We have yet again delivered record profits, which reflects our financial strength and stability, and underscores our competitive advantage and customer-centric approach,” he said. “Our results demonstrate strengthened fundamentals through our sharpened focus on innovative product offerings and sound claim settlement process.
“Continuing to consolidate our market leadership, we are now shifting gears towards accelerating growth with profit. Our steady expansion in both volume and profit, showcases the strength of our customers’ continued trust in us. We delivered robust growth across all our channels, including agency, bancassurance, and digital. This well positions us to rapidly scale up our business towards a sustained accelerated growth trajectory.”
