Synopsis: Star Health is one of India’s largest private standalone health insurers, reporting Q3FY26 profit of Rs. 449 crore, up 415% YoY, on an IND AS basis, with insurance revenue of Rs. 4,562 crore and improved claims and expense ratios.
This is India’s first Standalone Health Insurance provider and is the largest private health insurer in India with leadership in the attractive retail health segment is now in focus after improving its claims ratio and Strong Investment Income.
With a market capitalisation of Rs. 26,625 cr, the shares of Star Health & Allied Insurance Company Ltd are currently trading at Rs. 452.50 per share, increasing 4% in today’s market session, making a high of Rs. 460, up from its previous close of Rs. 440.75 per share.
Q3FY26 Results
Star Health Insurance reported insurance revenue of Rs. 4,562 crore, up from Rs. 4,093 crore in Q3 FY25, reflecting an increase of approximately 11.4% year-on-year.
Insurance service expenses rose to Rs. 4,218 crore from Rs. 3,876 crore, driven by higher claims and acquisition costs, while net reinsurance costs decreased slightly. As a result, the insurance service result improved significantly to Rs. 324 crore from Rs. 179 crore, up about 81% YoY.
Investment income also saw a substantial jump to Rs. 569 crore from Rs. 207 crore, contributing to a net finance result of Rs. 552 crore versus Rs. 199 crore, up roughly 177% YoY.
The company posted a profit before tax of Rs. 594 crore, a fivefold increase from Rs. 117 crore in the prior year period, translating into a profit for the period of Rs. 449 crore, up from Rs. 87 crore, an increase of over 415% YoY. Loss ratio gross improved to 68.9% from 70.9%, and the expense ratio declined to 29.9% from 30.8%, resulting in a combined insurance service ratio (CISR) of 98.8%, better than 101.7% a year ago.
Business Highlights
For the first 9 months of FY26, Star Health Insurance demonstrated strong growth across multiple fronts. On the growth levers, the Agency channel showed 35% fresh growth with a 67% contribution to fresh GWP, while Digital grew 46% with a 20% contribution.
In contrast, Banca saw an 8% decline in fresh growth but still contributed 12% to fresh GWP, and Corporate experienced a significant drop of 86% in fresh growth, contributing only 1%.
In terms of financial performance, the company’s GWP rose to Rs. 13,856 crore in 9MFY26 from Rs. 11,947 crore in 9MFY25. Expense ratio improved slightly to 29.8% from 30.8%, and the combined ratio decreased to 99.8% from 102.1%. From a customer-centricity perspective, lives covered grew marginally to 1.8 crore, persistency improved to 99%, and grievances per 10,000 policies reduced to 20, indicating an enhanced focus on customer satisfaction and service quality.
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