Star Health and Allied Insurance Company (STARHEALTH) Q2 25/26 earnings summary

Executive summary

• Achieved 12% year-over-year growth in gross written premium (GWP) to INR 8,809 crore for H1 FY2026, with retail health GWP up 17% to INR 8,332 crore and strong renewal persistency of 98% by value.

• Profit after tax for H1 FY2026 at INR 518 crore, up 21% year-over-year, driven by improved underwriting and investment income.

• Retail business forms 95% of the total book, with group portfolio reduced to 5%; retail health market share stable at 32-33%.

• Digital channel saw 47% year-over-year growth in fresh premium, now contributing 20% of fresh business; agency channel remains strong with 20% growth.

• Board approved unaudited standalone financial results for the quarter and half year ended September 30, 2025, with a limited review by joint statutory auditors.

Financial highlights

• Combined ratio for H1 FY2026 at 100.3% (vs 102.1% last year); Q2 at 101% (vs 104.8% last year); Q2 standalone at 103.79%.

• Net incurred claim ratio for H1 FY2026 at 70.6%, down 30 bps year-over-year; Q2 FY2026 at 71.8%, down 190 bps from Q2 FY2025.

• Expense ratio improved to 29.7% from 31.1% in H1 FY2025.

• Investment income at INR 752 crore for H1 FY2026, with 8.3% yield.

• Solvency ratio at 2.15x as of September 30, 2025, well above regulatory requirements.

Outlook and guidance

• Focus remains on disciplined underwriting, digital and agency channel expansion, and fraud analytics.

• No price increase planned for GST impact; regular price hikes will address medical inflation.

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

• Long-term strategy targets gradual improvement in combined ratio and ROE through 2028.

• Continued investment in technology and customer-centric wellness initiatives to drive growth.