Star Health and Allied Insurance Co. Ltd has reported a strong profit for the March 2024 quarter and the fiscal of FY24. The company continued to make underwriting profit in FY24 though it shrank when compared with FY23.
The standalone health insurer recorded a 39 per cent rise in its profit after tax at ₹142 crore for the quarter ended March 31, 2024, when compared with a PAT of ₹102 crore in the year-ago period amid a year-on-year increase in underwriting loss the March 2024 quarter. Gross Written Premium grew by 18 per cent Y-o-Y in Q4 FY24 to ₹4968 crore.
For the full year of FY24, the company’s net profit grew by 37 per cent to ₹845 crore, the highest-ever annual profit, when compared with ₹619 crore in FY23 amid a drop in underwriting profit.
Its operating profit was higher at ₹90 crore as against ₹75 crore. The company’s underwriting profit was lower at ₹90 crore in FY24 when compared with ₹205 crore in FY23.
Its total income stood at ₹13,579 crore as against ₹11,763 crore.
The Chennai-headquartered company’s gross written premium (GWP) increased by 18 per cent to ₹15254 crore when compared with ₹12952 crore in FY23.
“We have yet again delivered record profits, reflecting our financial strength and stability, underscoring our competitive advantage and customer-centric approach. Our results demonstrate strengthened fundamentals through our sharpened focus on innovative product offerings and sound claim settlement process,” said Anand Roy, MD & CEO of Star Health Insurance.
The Combined ratio was 96.7 per cent in FY24 and was 92.7 per cent in Q4FY24. The claim ratio stood at 66.5 per cent for FY24 and 64.1 per cent in Q4FY24.
“The Company posted a lower expense of management ratio of 30.7 per cent, against the regulatory requirement of 35 per cent, which offers an opportunity for growth,” according to a company statement.
Star Health Insurance’s market share increased by 22 bps among general insurance companies to 5.26 per cent. At the same time it continued to maintain its leadership in the retail health insurance sector with a 33 per cent market share.
Cashless claims pay-out improved to 87 per cent of total claims in FY24 against 80 per cent in FY23. The Company has further strengthened its distribution network with an addition of 16,000 agents in Q4FY24 and 75,000 agents in FY24, taking the overall number of agents servicing customers to 7,01,000.