Star Health and Allied Insurance Company (STARHEALTH) Q1 26/27 earnings summary

Executive summary

• Celebrated 20 years of operations, serving over 28 million lives and maintaining leadership as India's largest retail health insurer.

• Achieved 19% YoY growth in gross written premium (GWP) to ₹4,287 Cr for Q1 FY27, with retail fresh GWP up 37% YoY to ₹730 Cr, driven by proprietary and digital D2C channels.

• Underwriting profit improved to ₹111 Cr from ₹16 Cr YoY, reflecting disciplined portfolio management.

• Customer persistency reached 102% and Net Promoter Score (NPS) increased to 65.

• Board approved reclassification of certain promoter group shareholders to public category, subject to regulatory approvals.

Financial highlights

• Gross written premium (GWP) rose 19% YoY to INR 4,287 crore (1/N basis) and INR 4,672 crore (N basis).

• Insurance revenue for Q1 FY27 grew 13% YoY to ₹4,917 Cr.

• Profit after tax (PAT) for Q1 FY27 was ₹550 Cr, up 25% YoY; normalized PAT (at 8% yield) up 44% YoY to INR 386 crore.

• Underwriting profit for Q1 was INR 111 crore, up from INR 16 crore YoY, marking four consecutive quarters of improvement.

• Investment income for Q1 FY27 was ₹644 Cr, up 10% YoY.

Outlook and guidance

• Insurance revenue growth expected to reach 15-16% through FY 2027 and increase further in FY 2028.

• Growth rate may moderate in H2 due to high base effect from GST waiver, but focus remains on sustainable, profitable segments.

• Mid to high teens ROE targeted on a steady-state basis.

• Ongoing investment in technology and analytics to enhance underwriting and claims efficiency.