NEW DELHI: Star Health and Allied Insurance Company Ltd (Star Health Insurance) has reported an 11 per cent decline in net profit for the second quarter of the current financial year.
The company reported Rs 111 crore in profit during the quarter compared with Rs 125 crore. However, the revenue grew by 16.6 per cent during the quarter to Rs 3,914 crore. In the first half of the year, the company posted profit after tax of Rs 430 crore.
Roy said the company’s investment assets grew by 17.2 per cent and reached Rs 16,431 crores as on 30-Sep 2024, with an investment income of Rs 354 crore. The combined ratio in Q2FY25 stood at 103 per cent and 101% in H1 FY25.
The Company retained its leadership position in retail health insurance, with a market share of 32 per cent and among SAHI players with a market share of 55.3 per cent.
The company focused on expanding its agency strength, posting strong agency business growth of 17 per cent in fresh GWP in H1FY25. The agency business vertical contributed to 80% of overall business in H1FY25 with increased agency strength at 742k agents with recruitment of 25k agents in Q2FY25.
This growth highlights Star Health’s continued efforts to meet the evolving insurance needs across India, especially within tier 3 and tier four cities and towns. Anand Roy, MD and CEO of Star Health and Allied Insurance stated, “At Star Health, we are committed to bringing innovative, affordable products to all socioeconomic segments of society, leveraging technology and robust partnerships with healthcare providers to enhance service delivery.
By introducing modular plans that adapt to customers’ needs across life stages, allowing for customization and scalability - and expanding our inclusive offerings, we have strengthened our reach across key segments. We remain laser-focused on ensuring accessible and affordable health insurance for every Indian, especially in underserved markets.”
The Bancassurance business, which includes banks, NBFCs and alternate channels, saw fresh GWP growth of 25 per cent. In corporate business, the company recalibrated its corporate business strategy and witnessed major growth on a low base. The digital business comprised of direct-to-customer, online brokers and web aggregators has also shown strong growth in fresh business of over 41 per cent in H1FY25. For H1FY25, the operating expense to GWP ratio stood at 15.6 per cent, reflecting effective cost control compared to 17 per cent in H1FY24 with an expense ratio at 30.8 per cent.