Star Health and Allied Insurance Company , a prominent player in the Indian insurance sector, has set ambitious targets for its financial performance while reporting robust growth in its latest quarterly results.

Financial Targets and Strategy

Star Health has announced its aim to achieve and maintain a return on equity (ROE) of 15-16% or higher by the fiscal year 2028. Nilesh Kambli, the company's Chief Financial Officer, emphasized the focus on sustainable profitability and controlling expense ratios to improve operating profitability.

Market Position

The company has successfully maintained a 33% annual market share, driven by its extensive agency network and digital platform. This strong market presence has been particularly notable in tier 2 and tier 3 cities, where Star Health has established itself as a leader in the insurance sector.

Q1 Financial Performance

Star Health reported impressive financial results for the first quarter:

The company's profit after tax saw a significant increase of 44.00%, rising from ₹304.00 crore to ₹438.00 crore. The return on equity also improved, reaching 4.90% compared to 3.80% in the previous year. Gross Written Premium, a key indicator of insurance business growth, rose by 13.00% year-on-year to ₹3,936.00 crore.

Business Insights

CFO Nilesh Kambli provided additional insights into the company's operations:

• Portability accounts for only 10% of new business, indicating strong customer retention and acquisition of new policyholders.
• The company's leadership position in tier 2 and tier 3 cities highlights its strong penetration in these markets.

Market Response

The positive financial results and future outlook were well-received by the market. Star Health's shares closed 4.55% higher at ₹446.15, reflecting investor confidence in the company's performance and strategy.

As Star Health continues to focus on sustainable growth and profitability, its performance in the coming quarters will be closely watched by investors and industry analysts alike.

Star Health and Allied Insurance Company Ltd , India's largest health insurance provider, has unveiled a multi-pronged strategy to solidify its leadership in the retail health insurance market. The company's approach, coupled with strong financial performance, signals a robust start to the fiscal year.

Strategic Focus on Technology and Digital Expansion

Star Health is pursuing retail market leadership through a comprehensive strategy that leverages technology and digital channels. The company is focusing on:

1. Technology-driven claims processing
2. Expansion of digital channels
3. Development of a diverse premium product portfolio

These initiatives are aimed at enhancing customer experience and operational efficiency. The company's customer app has seen 11 million downloads, featuring innovations such as real-time claims tracking and document submission.

Strong Financial Performance in Q1

The insurer reported impressive financial results for the first quarter:

• Gross Written Premium (GWP) grew by 13% year-on-year to ₹3,936.00 crore
• Profit After Tax (PAT) surged 44% to ₹438.00 crore (as per IFRS)
• Combined ratio improved to 99.60% (IFRS basis)
• Retail GWP increased by 18%, with fresh retail premiums growing by 25%

Key Performance Indicators

Focus on Sustainable Growth and Value Creation

Anand Roy, MD and CEO of Star Health and Allied Insurance, commented on the company's performance: "We have started the fiscal year on a steady note, with encouraging growth across our core segments and visible gains from the structural changes we initiated over the past two years. During the quarter, we stayed prudent in our risk selection, made critical pricing and underwriting changes, and improved our claims service experience."

Product Innovation and Distribution Channels

Star Health is seeing traction with new product launches such as Super Star and Star Flexi, which have collected more than ₹1,000.00 crore in premiums over the last 12 months. The company continues to rely on its multi-channel distribution strategy:

• Agency channel remains the backbone of the business
• Digital business is scaling well and emerging as a profitable growth engine
• Bancassurance and SME group business support overall growth

Customer-Centric Approach

The company's focus on customer service is evident in its improved Claims Net Promoter Score (NPS), which rose to 57 in Q1 from 45.8 in the previous year. This improvement reflects enhanced claims experience and customer satisfaction.

Looking Ahead

As Star Health looks to the future, its focus remains on sustainable growth and long-term value creation for all stakeholders. The company is well-positioned to capitalize on the growing health insurance market in India, driven by its technology initiatives, product innovation, and strong distribution network.

With its multi-faceted approach to market leadership and solid financial performance, Star Health Insurance appears poised for continued growth in the competitive health insurance landscape.