Star Health Insurance Records PAT Growth of 37% to Rs 845 Crores in FY24
Hyderabad, 30 April 2024: Star Health and Allied Insurance Company Ltd. (Star Health Insurance), market leader in retail health insurance, today announced robust financial results for its Q4 and FY2024. In FY’24 the Company reported a record profit of Rs 845 Cr, up 37% and an increase of 18% in Gross Written Premium (GWP) to Rs 15,254 Cr. PAT for Q4FY24 at Rs 142 Cr was up 40% YoY; GWP increased by 18% YoY in Q4FY24 to Rs 4,968 Cr. The Combined ratio was 96.7% in FY24 and was 92.7% in Q4FY24. The claim ratio stood at 66.5% for FY24 and 64.1% in Q4FY24. The Company posted a lower expense of management ratio of 30.7%, against the regulatory requirement of 35%, which offers an opportunity for growth. Star continued to make underwriting profit in FY24.
Star Health Insurance’ growth in GWP in FY24 is a result of strong retail health insurance demand that the Company capitalised on through one of the largest agency networks, its strong digital channel sales, and collaborations with banks and financial institutions. Underwriting profits grew robustly on the back of strong underwriting and risk management. Star Health Insurance’s market share was up 22 bps among general insurance companies to 5.26%; while it continued to maintain its leadership in the retail health insurance sector with a 33% market share. Cashless claims pay-out improved to 87% of total claims in FY24 against 80% 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.
With a strong focus on customer centricity, the Company has taken significant steps towards enhancing its pan-India phygital presence with 881 branch offices and 14,295 network hospitals.
Commenting on the results Anand Roy, MD & CEO of Star Health Insurance said, “We at Star Health made a conscious journey of putting risk-first and growth later, which helped us in carving a path towards sustainable secular growth. We have yet again delivered record profits, which reflects our financial strength and stability, and underscores 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. Continuing to consolidate our market leadership, we are now shifting gears towards accelerating growth with profit. Our steady expansion in both volume and profit, showcases the strength of our customer’s continued trust in us. We delivered robust growth across all our channels, including agency, bancassurance and digital. This well positions us to rapidly scale up our business towards a sustained accelerated growth trajectory.”