Star Health and Allied Insurance Company (STARHEALTH) investor relations material

Executive summary

• Achieved strong top-line growth with GWP up 35% YoY to ₹13,856 crore for nine months, covering 1.8 crore lives, and maintained retail health market leadership with a 33% share and 95% retail mix.

• Ind AS PAT rose 87% YoY to ₹966 crore for nine months, with underwriting profit of INR 20 crore versus a loss last year.

• Digital and agency channels drove growth, with digital GWP up 46% YoY and agency fresh business up 35% YoY.

• Maintained strong customer centricity with NPS of 64 and improved grievance ratio per 10,000 policies.

• Board approved unaudited standalone financial results and reclassification of certain promoter group entities to public shareholders, subject to regulatory and shareholder approval.

Financial highlights

• Combined ratio improved to 99.8% for nine months, with Q3 at 98.9%; loss ratio declined to 70% for nine months.

• Investment yield at 9.6% for nine months, with investment income of ₹1,321 crore and 18.7% of book in high-yielding assets.

• Expense ratio improved to 29.8% for nine months; acquisition expense ratio rose to 26.9% in Q3 due to higher fresh business.

• Return on equity (non-annualized) increased to 10.6% in 9M FY26 from 6.4% in 9M FY25.

• Net worth as of December 31, 2025, was ₹7,47,724 lakhs.

Outlook and guidance

• Expect continued improvement in loss and combined ratios as pricing and underwriting changes flow through.

• Annual price hikes to continue, with 10% guided for senior citizen products.

• Focus on digital-first initiatives, operational efficiency, and expanding distribution network.

• Targeting mid-teens ROE through a blend of loss and expense ratio management.

• Management notes seasonality in the health insurance industry, with higher claims during monsoon and higher premium income towards year-end due to tax benefits.