Star Health and Allied Insurance Company Limited has announced a 16% increase in its profit after tax (PAT) to INR 911 crore for the fiscal year 2025-26 (FY26), compared to INR 785 crore in FY25. The company attributed this growth to sharp improvements in operating metrics and a robust performance across its business segments.
Financial Performance Highlights
The insurer's gross written premium (GWP) rose by 18% to INR 15,200 crore in FY26, up from INR 12,880 crore in the previous fiscal. Net earned premium also saw a healthy uptick, reaching INR 12,100 crore, a 17% increase year-on-year. The combined ratio improved to 98.2% in FY26 from 99.5% in FY25, reflecting better underwriting discipline and cost management.
Key Operating Metrics
Star Health's expense ratio declined to 12.5% from 13.2%, while the loss ratio improved to 85.7% from 86.3%. The company's solvency ratio stood at 2.05 times, well above the regulatory requirement of 1.50 times. New business premiums grew by 22%, driven by strong demand for health insurance products in both retail and group segments.
- Profit After Tax: INR 911 crore (FY26) vs INR 785 crore (FY25), up 16%
- Gross Written Premium: INR 15,200 crore vs INR 12,880 crore, up 18%
- Combined Ratio: 98.2% vs 99.5%, improved by 130 basis points
- Expense Ratio: 12.5% vs 13.2%, down 70 basis points
Management Commentary
Managing Director and CEO of Star Health, Mr. Anand Roy, stated: "We are delighted with our performance in FY26, which reflects our focus on profitable growth and operational efficiency. The improvement in our combined ratio and expense management demonstrates the strength of our business model. We remain committed to delivering value to our stakeholders and expanding our reach in the health insurance market."
Outlook and Strategy
Star Health plans to continue its growth trajectory by leveraging technology, enhancing customer experience, and expanding its distribution network. The company is also focusing on product innovation to cater to the evolving needs of policyholders. With a strong capital base and improving metrics, Star Health is well-positioned to capitalize on the growing demand for health insurance in India.
