Star Health and Allied Insurance Company Limited reported a Profit After Tax (PAT) of ₹54,973 lakh for the quarter ended June 30, 2026 (Q1FY27), marking a 25.2% year-on-year increase from ₹43,818 lakh in Q1FY26. The Chennai-based insurer’s underwriting profit surged sixfold to ₹111 crore, compared to ₹16 crore in the previous year, driven by disciplined pricing and improved claims management. This performance underscores the company’s ability to enhance operational efficiency despite industry-wide inflationary pressures, delivering stronger core profitability insulated from investment volatility.

The Board of Directors, chaired by Managing Director and CEO Anand Roy, approved the unaudited standalone financial results on July 29, 2026. The results were reviewed by Joint Statutory Auditors M/s. T R Chadha & Co LLP and M/s. MSKA & Associates LLP under Ind AS 34. In addition to financial approvals, the Board authorized the reclassification of shareholders from the Late Rakesh Jhunjhunwala promoter group to the public category, subject to stock exchange approval. The company also confirmed the exercise of call options for 4,000 convertible debentures redeemable on September 30, 2026, and 700 debentures due on October 29, 2026.

Financial Performance Highlights

Star Health’s profitability was supported by a significant recovery in investment income, which swung to a positive ₹64,369 lakh in Q1FY27 from ₹58,644 lakh in Q1FY26. The insurance service result stood at ₹42,510 lakh, compared to ₹28,784 lakh in the previous year. Key metrics for the quarter are detailed below:

The claims ratio for general insurance business increased slightly to 67.48% from 68.52% in Q1FY26, indicating better claims experience relative to premiums earned. The combined operating ratio (CoR) improved to 90.93% from 92.00% in the prior year quarter, signaling enhanced operational efficiency. Total assets grew to ₹23,78,004 lakh, with policyholder investments constituting ₹13,89,180 lakh.

Segment-Wise Breakdown

The health insurance segment remained the primary growth engine, reporting insurance revenue of ₹4,86,790 lakh, up from ₹4,27,971 lakh in Q1FY26. Fresh Retail Health Gross Written Premium (GWP) surged 37% YoY to ₹730 crore. The personal accident segment saw a slight decline in revenue to ₹4,769 lakh from ₹5,392 lakh, while travel insurance revenue contracted to ₹161 lakh from ₹279 lakh. Despite the smaller size of these segments, they contributed marginally to the overall profit, with health accounting for ₹54,557 lakh of the total net profit.

What the Numbers Show

A notable divergence exists between the top-line growth and the claims inflation rate. While GWP grew by nearly 19%, incurred claims rose by only 12.4%, suggesting that premium pricing has outpaced claim costs in this period. Furthermore, the swing in investment income significantly boosted the bottom line, contributing to a return on equity (RoE) of 5.57% (quarterly), compared to 4.93% in the previous year. The solvency ratio remains robust at 2.09, well above regulatory requirements, providing a buffer against future volatility.

Operational Efficiency and Digital Growth

Star Health settled 9.6 lakh claims during Q1FY27, with the Retail Claims Settlement Ratio improving to 91%. Persistency improved by 3% YoY to 102%, and the Company Net Promoter Score (NPS) rose by 12 points to 65 as on June 2026. Digital channels contributed 16% of fresh retail sales, up 142% YoY, with 97% of fresh policies sourced digitally. The company’s AI-enabled platform, ATOM PRO, won “InsurTech Product Excellence of the Year” at the BFSI FinNext Awards 2026, reinforcing its technology-led distribution strategy across its network of 900+ branches and 8.5 lakh+ agents.

Star Health & Allied Insurance Company Limited has submitted an application to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on August 03, 2026, seeking formal approval for the reclassification of 97 promoter group entities into the public category. This procedural step follows the company’s earlier disclosure on July 28, 2026, regarding receipt of reclassification requests from shareholders associated with the estate of Late Mr. Rakesh Jhunjhunwala. The move aims to regularize the shareholding pattern in compliance with Regulation 31A(8)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring accurate regulatory reporting following the promoter’s demise.

The reclassification process involves transferring shares held by these entities from the 'Promoter / Promoter Group' category to the 'Public' category. While the majority of the 97 entities hold nil shares, Mrs. Sudha Gupta holds a non-nil stake of 2825 shares. Two entities, Late Mr. Rakesh Jhunjhunwala and Late Smt. Sushiladevi Gupta, are listed as deceased shareholders, making request letters inapplicable for them. The company stated it will undertake all necessary steps to process these requests, including obtaining approvals from its Board of Directors, the stock exchanges, and the members of the company.

Entities Seeking Reclassification

The 97 entities span a diverse range of individuals, corporate bodies, trusts, and limited liability partnerships. Key categories include:

• Individuals: Master Aryamaan Jhunjhunwala, Master Aryavir Jhunjhunwala, Miss Nishtha R. Jhunjhunwala, Mr. Rajeshkumar Jhunjhunwala, Mrs. Sudha Gupta, Mrs. Madhu Seksaria, Mrs. Renu Ruia, Mrs. Roopal Gupta.
• Investment & Advisory Firms: Rare Enterprises, Rare Investments, Capris Advisors LLP, Goldcrest Advisors LLP, Insync Capital Partners LLP, Manveer Associates LLP.
• Real Estate & Infrastructure: Kinnteisto LLP, Park Developers, Yashrey, Shree Ratnasagar Developers, Ratnasagar Developers LLP, Neumec Developer & Builders, Parvati Realtors LLP, Bhumi Realty Ventures LLP, Rashi Properties LLP, J&J Buildcon Private Limited.
• Corporate Entities: Aptech Limited, AGLSM SDN BHD, Aptech Training Ltd. FZE, Aptech Ventures Limited (Mauritius), MEL Training & Assessments Limited, Inventurus Knowledge Solutions INC, Inventurus Knowledge Solutions Limited, IKS Cares Foundation, Concord Biotech Limited, Concord Biotech Japan K.K., Concord Lifegen Limited, Clean Max Everglades Pvt Ltd, JCB Salons Private Limited, FRIN Beauty Private Limited, Minosha India Limited, Minosha Print Solutions Pvt Ltd, Minosha Project Pvt Ltd, Pegasus Assets Reconstruction Private Limited, Zenex Animal Health India Private Limited, SNV Aviation Private Limited, Wing World Ground Services Pvt Ltd, Snehal Packaging Private Limited, John Energy Limited, John Drilling Services Private Limited, John Energy International FZCO (formerly John Energy International DMCC), Synergy Drilling Fluids Private Limited, Shree Sant Kripa Intellectual.
• Trusts: Pegasus 2023 Trust 2, Pegasus 2023 Trust 3, Pegasus 2023 Trust 9, Pegasus 2024 Trust 1, Pegasus 2024 Trust 2, Pegasus Group Eleven Unicorp Trust I, Pegasus Group Forty one Trust 1, Pegasus Group Nine Trust 2, Pegasus Group Nine Trust 3, Pegasus Group one Trust 41, Pegasus Group Thirty Nine Trust 1, Pegasus Group Thirty Nine Trust 2, Arti Family Trust, Jhunjhunwala Family Trust, Nityas Welfare Trust, Noopur Family Trust, Sudha Children Trust, Inayas Welfare Trust, Arayas Welfare Trust, Renu Ruia Trust, Kushi Trust, Kartikeya Trust, Nitya Trust, Inaya Trust.
• Other Entities: Jalaram Baba Children’s Nest Education Private Limited, Les Concierges Services Private Limited, OHM Educom Foundation Private Limited, ABC Enterprises, Ruia Agro Farms, Ruia Builders & Developers, Associate Enterprise, Maanya Enterprises, Bombay Goods Freight Carriages, BGFC Logistic LLP, Shraddha Communication Private Limited, Onex Systems Private Limited, E-Phoria Technologies Private Limited, Hope Film Makers Private Limited, Gutz Feel Film Production LLP, Hope Entertainment LLP, One by Three Film Production LLP, Resitex, Sunil Seksaria HUF, Estate of Late Rakesh Jhunjhunwala.

Shareholding Details

Regulatory Process

Star Health & Allied Insurance Company Limited confirmed that it will process the reclassification requests in accordance with the applicable regulatory framework. This involves securing approvals from the Board of Directors, BSE Limited, the National Stock Exchange of India Limited, and the company’s members. Copies of the request letters received from the aforementioned members have been enclosed as Annexure 1 to the regulatory filing. The application was signed by Jayashree Sethuraman, Company Secretary & Compliance Officer.