Star Health and Allied Insurance Company Limited has informed the Exchange about transcript of earning call dated April 30,2025.
STARHEALTH · price
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Awaiting price reaction for this filing.
Star Health closed FY25 as India's largest standalone health insurer with a 33% retail health market share, but profitability took a hit. Overall GWP grew 15% with fresh retail GWP up 25%, yet the claim ratio worsened to 70.7% (from 66.5% in FY24) and combined ratio hit 101.1% (vs 97.3%). PAT fell to Rs.787 crore from Rs.1,103 crore, and ROE came in at 9.5%. The group segment loss ratio spiked to 89.8% from 77.3%, though its share of total GWP has been cut to 7%. Management has re-priced 60% of the portfolio and is betting on cohort-based pricing, a larger agency network (target 1 million agents in 3 years), and digital channels (fresh business up 71%) to drive a recovery, reiterating the FY28 target of doubling revenue and tripling profit on IFRS basis.
Missed prior year guidance of 50bps loss ratio improvement, with ratios actually deteriorating 400bps, is a negative for near-term sentiment. Management's repeated refusal to give forward loss ratio guidance and deferral of key data questions to 'offline' may dent analyst confidence. However, the long-term FY28 doubling/tripling target remains intact and fresh business momentum (25% in retail) provides some comfort.