Last Updated on November 2, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
Founded in 2006, Star Health and Allied Insurance Company Limited is a leading multinational health insurance company in India and has its headquarters in Chennai, Tamil Nadu. The company currently has more than 15,000 employees and over 850 branch offices across the country. With more than 14,000 network hospitals all over India, Star Health and Allied Insurance Co. offers wide coverage and extends services in health, personal accident, and overseas travel insurance.
The company released its financial results for the second quarter of FY24 on October 31, 2023, after market hours. While it registered a 35% increase in profits, the company fell short of analysts’ estimates. Here is a quick rundown of its key financial metrics and performance highlights.
Additional Read: Q2 Results Dashboard
Key Financial Metrics
Performance Highlights
- Star Health and Allied Insurance Co. reported an increase of 15% YoY in its total income at ₹3,356.6 Cr during the quarter, as against ₹2,918.05 during the same period last year.
- The company’s operating expense to Gross Written Premium (GWP) ratio stood at 16% for Q2 FY24.
- For the period under review, the retail health segment reported a profit of ₹67.55 Cr, down 35% from the year before when it registered ₹103.08 Cr.
- The Group health profit (corporate) for the quarter declined 31.4% YoY at ₹5.08 Cr from ₹7.41 Cr in the corresponding period last year.
- The company’s net profit rose 35% year-on-year to ₹125.30 Cr versus ₹93.1 Cr during Q2 FY23.
- Star Health and Allied Insurance Co’s solvency ratio increased from 1.95 to 2.13 on the year.
- The expense ratio for H1 FY24 was 18.19%, up from 17% during the same period last year.
As per an exchange filing, Star Health and Allied Insurance Company Limited clocked a 35% YoY increase in net profit for Q2 FY24, standing at ₹125.30 Cr. However, it fell short of the ₹165.97 Cr profit estimated by analysts.
The company’s Gross Written Premiums (GWP) increased from ₹3,192.9 Cr registered during the second quarter of the last fiscal year to ₹3,731.7 Cr during Q2 FY24. The GWP also increased sequentially from ₹2,948.63 Cr reported during the first quarter of this year. For the first six months, the company’s GWP stood at ₹6,680.32 Cr compared to ₹5,656.56 Cr during H1 FY23.
However, the total expenses during the quarter also increased sequentially and year-on-year. As for the operating profit, the company clocked ₹72.63 Cr during the period under review, as against ₹110.49 Cr during the same period last year.
Star Health and Allied Insurance Company Limited: H1 Financial Figures (YoY)
| Particulars | H1 FY 2022-23 | H1 FY 2023-24 |
| Gross Premium Written | ₹5,656.56 Cr | ₹6,680.32 Cr |
| Total Income | ₹5,727.07 Cr | ₹6,546.34 Cr |
| Total Expenses | ₹5,337.62 Cr | ₹6,182.24 Cr |
| Underwriting Profit/(Loss) | ₹144.22 Cr | ₹67.09 Cr |
| Operating Profit | ₹389.45 Cr | ₹364.10 Cr |
| Profit Before Tax | ₹408.64 Cr | ₹551.45 Cr |
| Profit After Tax | ₹306.35 Cr | ₹413.15 Cr |
Also Read: Star Health & Allied Insurance Share Price
Star Health and Allied Insurance Company Limited: Financial Figures (QoQ)
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Gross Premium Written | ₹2,948.63 Cr | ₹3,731.7 Cr |
| Total Income | ₹3,189.79 Cr | ₹3,356.55 Cr |
| Total Expenses | ₹2,898.32 Cr | ₹3,283.93 Cr |
| Underwriting Profit/(Loss) | ₹145.43 Cr | ₹(78.35) Cr |
| Operating Profit | ₹291.47 Cr | ₹72.63 Cr |
| Profit Before Tax | ₹384.35 Cr | ₹167.11 Cr |
| Profit After Tax | ₹287.85 Cr | ₹125.30 Cr |
Key Analytical Ratios
| Particulars | H1 FY 2022-23 | H1 FY 2023-24 | Q2 FY 2022-23 | Q2 FY 2023-24 |
| Solvency Ratio | 1.95 | 2.13 | 1.95 | 2.13 |
| Combined Ratio (CoR) | 97.92% | 98.44% | 97.87% | 99.22% |
Stock Performance
Star Health and Allied Insurance Company Limited announced its quarterly results for Q2 FY24 after the market closed on October 31, 2023. On the same day, the company’s shares opened at ₹588.05 and declined 1.17% to settle at ₹580.80 apiece on BSE.
About the Company
Star Health and Allied Insurance Company Limited was established in 2006, and today, it is the country’s leading private health insurance company. The company offers innovative services and products in health, personal accident, and overseas and domestic travel insurance tailored for Indian citizens. It has also received several awards in recent years, including Digital Innovation of the Year (Health Insurance) – 2023 and The Best of Bharat Awards – 2022. The company launched its ₹7,249 Cr IPO in December 2021 (later reduced to ₹6,400 Cr) and currently employs more than 15,000 people.
Sources:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/1cf40bcd-1d8a-4f82-ab9e-78c09d852f4f.pdf
