Star Health and Allied Insurance Company (STARHEALTH) Q3 24/25 earnings summary

Executive summary

• Regulatory and accounting changes, including new premium recognition and IFRS adoption, are reshaping industry reporting and transparency, with alignment to new frameworks.

• Maintained leadership in retail health with a 32.2% market share and 56.1% share among standalone health insurers.

• Strong growth in GWP and fresh business, with digital premium collection reaching 70% and over 8.6 million app downloads.

• Unaudited standalone financial results for the quarter and nine months ended December 31, 2024, were approved by the Board on January 28, 2025.

• Product innovation, notably the Super Star product, and digital initiatives have driven customer engagement and business growth.

Financial highlights

• Nine-month FY25 GWP grew 16% (without 1/N), with fresh GWP up 27%; GWP for 9MFY25 was ₹11,643 crore, up 13% year-over-year.

• Combined ratio for nine-month FY25 was 101.8% (vs. 98.3% prior year); claim ratio increased to 70.7% (from 67.3%).

• PAT for nine-month FY25 stood at ₹645 crore, down from ₹703 crore in 9MFY24; investment income rose to ₹996 crore.

• Solvency ratio at 2.22x, well above the regulatory minimum of 1.5x.

• Opex/GWP ratio remained stable at 15.9% for 9MFY25.

Outlook and guidance

• Management expects continued improvement in financials, supported by recent price hikes and product launches.

• Long-term products are now accounted for on a 1/n basis as mandated by IRDAI, impacting reported ratios and profitability.

• Quarterly results are not indicative of full-year performance due to seasonality in the health insurance industry.

• Price hikes are expected to mitigate medical inflation, with further impact visible over the next 18–24 months.

• January and Q4 growth trends are positive, with expectations to close the year strongly.