Star Health and Allied Insurance Company (STARHEALTH) Q1 25/26 earnings summary

Executive summary

• Strategy focused on risk-first, customer-centric, digital-first, and ROE-driven growth, with strong agency and digital channel expansion and robust retail health market share at 31%.

• Product innovation and risk-based pricing, with Young Star and Health Assure now 80% of new business.

• Customer-centric initiatives improved NPS, digital engagement, and wellness outcomes, including 70% growth in telemedicine usage and 17% reduction in readmissions.

• Board approved unaudited standalone results for Q1 FY26 and made key management appointments, including Ms. Princey Mehra as Chief Compliance Officer.

Financial highlights

• Gross written premium (GWP) for Q1 FY26 at ₹3,936 crore, up 16% year-over-year; retail health GWP grew 18% to ₹3,667 crore.

• PAT for Q1 FY26 reached ₹438 crore, a 44% YoY increase; investment income rose to ₹586 crore, including ₹292 crore in mark-to-market gains.

• Return on equity (non-annualized) at 4.9% vs. 3.8% YoY.

• Combined ratio at 99.6% (vs. 99.2% YoY); claims ratio at 69.5%; expense ratio at 30.1%.

• Solvency ratio at 2.22x, above regulatory minimum.

Outlook and guidance

• Annual repricing strategy to address healthcare cost inflation and focus on profitable SME segments and digital business acceleration.

• Continued investment in customer experience, wellness, and operational efficiency; long-term guidance for FY28 maintained.

• Results are not indicative of full-year performance due to seasonality; higher claims expected during monsoon and higher premium income towards year-end.