Star Health and Allied Insurance Company , India's leading health insurer, has reported a robust 21% year-on-year increase in profit after tax to Rs. 518 crore for the first half of fiscal year 2026. The company's performance was primarily driven by strong growth in its retail health segment and improved operational efficiency.

Key Financial Highlights

• Gross Written Premium (GWP) reached Rs. 8,809.00 crore, marking a 12% year-on-year growth
• Retail health GWP rose by 17% to Rs. 8,332.00 crore
• Net incurred claim ratio improved to 70.60% from 70.90% in the previous year
• Combined ratio (IFRS basis) decreased by 170 basis points to 100.30%
• Investment yield stood at 8.30% for H1 FY2026

Retail Health Segment Leads Growth

The retail health segment emerged as the primary growth driver for Star Health Insurance. The company reported a significant 24% growth in fresh retail premiums, coupled with a strong renewal persistency of 98% on value in the retail health business. This segment now contributes to 95% of the company's total book, up from 91% in the previous year.

Operational Improvements

Star Health Insurance has made notable strides in improving its operational efficiency:

• Expense ratio improved to 29.70% from 31.10% in H1 FY2025
• Successfully exited unprofitable group employer-employee portfolios
• Repriced high-claims Banca Group books

Digital Channel Growth

The company's digital channel has shown remarkable growth, emerging as the fastest-growing segment:

• 47% fresh premium growth in the digital channel
• Now contributes 20% of overall fresh business

Market Position and Distribution

Star Health Insurance maintained its strong market position:

• Retained 32% market share in retail health
• Added over 30,000 new agents in the first half
• Agency vertical reported 20% growth in fresh business

Impact of GST Exemption

The recent GST exemption on retail health indemnity policies has provided a significant boost to Star Health Insurance's business:

• Reported 50% growth in fresh business in October
• Expected to improve persistency rates and affordability of health insurance

Management Commentary

Anand Roy, Managing Director & CEO of Star Health Insurance, commented on the results: "We are pleased with our performance in the first half of FY2026. Our focus on disciplined underwriting, strengthening our digital business, and improving fraud analytics capabilities has yielded positive results. The GST exemption on retail health policies is a welcome move that will further boost the affordability and penetration of health insurance in India."

Outlook

While the company did not provide specific guidance, management expressed confidence in the ongoing strategies:

• Continued focus on preferred geographies showing 1.5x growth compared to other markets
• Annual repricing strategy to address medical inflation
• Expansion into new areas such as OPD coverage, dental insurance, and other innovative products

Star Health Insurance's performance in H1 FY2026 demonstrates its resilience and adaptability in a dynamic market environment. The company's strong focus on the retail health segment, coupled with operational improvements and digital initiatives, positions it well for sustained growth in the coming quarters.

Investors and analysts will be keenly watching how Star Health Insurance capitalizes on the recent GST exemption and manages its combined ratio to achieve its long-term profitability targets.

Star Health and Allied Insurance Company Limited , India's largest standalone retail health insurer, has outlined ambitious strategic targets focusing on retail penetration, digital-first distribution, and operational efficiency improvements. The company aims to achieve over 10% premium compound annual growth rate (CAGR), enhanced solvency ratios, and market-leading claims automation capabilities.

Strategic Initiatives

Star Health's strategic plan is designed to boost profitability over the FY26-28 period through:

1. Improved distribution channels
2. Automated processes
3. Enhanced retail penetration
4. Digital-first approach

Financial Performance

The company's recent financial results reflect progress towards these goals:

Key Highlights

• Fresh retail premiums increased by 24%
• Retail health renewal persistency at 98%
• Market share in retail health insurance segment maintained at 32%
• Claims NPS improved from 52 to 61
• Overall company NPS improved from 59 to 61

Digital Transformation

Star Health's digital initiatives are showing promising results:

• Implementation of an AI-enabled claims platform for faster settlements
• The Star Health app has crossed 12 million downloads

Management Commentary

Anand Roy, MD & CEO of Star Health, stated, "The first half of this year has been marked by steady, meaningful progress with a 21% growth in PAT as per IFRS. Along with a healthy investment yield of 8.3%, the profitability was contributed by an improved loss ratio and reduction in our expense ratio."

Roy also noted strong tailwinds following GST exemption on retail health insurance, with early trends indicating a clear uptick in demand, reflected in stronger lead generation, new policy issuances, and GWP growth in October.

Future Outlook

Star Health remains focused on:

1. Disciplined underwriting
2. Advanced digital and fraud analytics
3. Deeper partnerships with hospitals and distributors

The company is well-positioned to sustain its leadership by combining responsible growth with customer-centric innovation, aligned with the national vision of Insurance for All by 2047.

Star Health's strategic focus on digital transformation, operational efficiency, and customer-centric approach appears to be yielding positive results. The company's ability to maintain its market leadership while improving profitability metrics suggests a robust foundation for future growth in the competitive health insurance sector.