Star Health and Allied Insurance Company , India's leading retail health insurer, has reported a robust financial performance for the first quarter, with significant growth in profitability and premium income.

Key Financial Highlights

• IFRS Profit After Tax (PAT) increased by 44% year-on-year to ₹438.00 crores
• Gross Written Premium (GWP) grew by 13% to ₹3,936.00 crores
• Retail health GWP surged by 18% to ₹3,667.00 crores
• Combined ratio stood at 99.60%
• Investment income rose to ₹586.00 crores, including ₹292.00 crores in mark-to-market gains

Strong Retail Performance

Star Health's retail segment continued to drive growth, with retail health GWP increasing by 18% to ₹3,667.00 crores. This growth was fueled by a 25% increase in fresh retail premiums and an impressive 98% renewal persistency on premiums. The company maintained its market leadership with a 31% share in the retail health segment.

Product and Channel Performance

The company's flagship products, Super Star and Health Assure, have been well-received in the market, contributing to nearly 80% of new business. Notably, the Super Star product crossed ₹1,000.00 crores in GWP within 10 months of its launch.

Star Health's agency channel, which contributes 82% of overall GWP, grew by 16% in both fresh and overall business. The company added 14,000 new agents during the quarter, expanding its agency base to 7.89 lakh.

Digital Growth and Innovation

The digital business showed impressive growth, with fresh business increasing by 73% year-on-year. Digital channels now contribute around 20% of new business, up from 12% in the same quarter last year. The company plans to create a dedicated digital Strategic Business Unit (SBU) to accelerate this growth further.

Claims and Customer Experience

Star Health reported a net incurred claim ratio of 69.50% for the quarter. The company's focus on improving claims experience has resulted in a higher claims NPS of 57, up from 46 in the same quarter last year. The claim settlement ratio also improved to 90% from 85.70% in the previous year's corresponding quarter.

Management Commentary

Anand Roy, Managing Director and CEO of Star Health, commented on the results, saying, "Our strategy grounded in four fundamental pillars - a risk-first approach, customer-centricity, a digital-first mindset, and a steady ROE focus - is now yielding results. We are seeing improvements in claims and customer experience, with better NPS trends and product innovations driving our growth."

Future Outlook

While the company maintains its focus on profitability and customer experience, it has indicated that it may revisit its long-term guidance of ₹30,000.00 crores in premium, potentially moderating it to adjust for changes in corporate business strategy. However, Star Health remains confident about achieving its bottom-line targets.

Board and Management Changes

Star Health announced the appointment of Rajeev Kher, former Commerce Secretary, as the new Chairperson of the Board. Additionally, Amitabh Jain (COO) and Himanshu Walia (CMO) have been elevated to the Board as Executive Directors, subject to regulatory approvals.

As Star Health continues to navigate the evolving health insurance landscape, its focus on retail growth, digital innovation, and customer-centric approach positions it well for sustained performance in the coming quarters.

Star Health and Allied Insurance Company Limited (Star Health) has issued a postal ballot notice seeking shareholder approval for several key business matters, including executive remuneration and board appointments. The company, a leading player in India's health insurance sector, is taking steps to strengthen its leadership team and align compensation with industry standards.

Remuneration for Non-Executive Chairperson

The company is seeking approval for an annual remuneration of Rs. 30.00 lakh for Mr. Rajeev Kher, the Non-Executive Independent Director and Chairperson of the Board. This remuneration is subject to the condition that the aggregate remuneration paid to all Non-Executive Independent Directors does not exceed 1% of the company's annual net profits.

MD & CEO Compensation Package

For Mr. Anand Roy, the Managing Director & Chief Executive Officer (MD & CEO), Star Health is proposing a compensation package for the financial year 2025-2026. The package includes:

• Fixed Pay: Rs. 6.59 crore
• Variable Pay: Up to 100% of the fixed pay, comprising:
  • Rs. 3.30 crore in cash
  • Equivalent value in Employee Stock Options (ESOPs)

New Board Appointments

The company is also seeking approval for the appointment of two new Whole-time Directors:

1. Mr. Himanshu Walia (Chief Marketing Officer)

   • Proposed annual package: Rs. 3.33 crore
   • Variable pay structure similar to the MD & CEO

2. Mr. Amitabh Jain (Chief Operating Officer)

   • Proposed annual package: Rs. 3.71 crore
   • Variable pay structure similar to the MD & CEO

Both appointments are for a period of five years, subject to IRDAI approval.

Employee Stock Option Scheme

Shareholders will also be asked to note a statement regarding the accounting methods for the company's Employee Stock Option Scheme (ESOP 2024).

Voting Process

The e-voting for these resolutions is scheduled to take place from August 2 to August 31, 2025. The results of the postal ballot are expected to be announced by September 1, 2025.

It's important to note that all appointments and remuneration proposals are subject to approval from the Insurance Regulatory and Development Authority of India (IRDAI).

These proposed changes reflect Star Health's commitment to attracting and retaining top talent in the competitive insurance industry, while also ensuring transparency and compliance with regulatory requirements. The outcome of this shareholder vote will be crucial in shaping the company's leadership structure and compensation policies for the coming years.