The industry leader in retail health insurance, Star Health and Allied Insurance Company Ltd. (Star Health Insurance), released strong financial results for its Q4 and FY2024 on May 1. The Company recorded a profit of Rs 845 Cr in FY’24, up 37%, while the Gross Written Premium (GWP) increased by 18% to Rs 15,254 Cr. In Q4FY24, PAT climbed by 40% YoY to Rs 142 Cr, while GWP increased by 18% YoY to Rs 4,968 Cr. In FY24 and Q4FY24, the combined ratio was 96.7% and 92.7%, respectively. throughout Q4FY24, the claim ratio was 64.1%, whereas it was 66.5% throughout FY24.
With a reduced expense of management ratio of 30.7% compared to the 35% statutory threshold, the company presents a growth opportunity. In FY24, Star maintained its underwriting profit margin.
Strong retail health insurance demand, which the company capitalized on through one of the largest agency networks, its strong digital channel sales, and partnerships with banks and financial institutions, is what led to Star Health Insurance’s growth in GWP in FY24. Due to effective risk management and underwriting, underwriting earnings increased significantly.
In the retail health insurance market, Star Health Insurance maintained its dominant position with a 33% market share, despite a 22-bps increase in its market share among general insurance companies to 5.26%. Payout for cashless claims increased to 87% of total claims in FY24 from 80% in FY23. By adding 16,000 agents in Q4FY24 and 75,000 agents in FY24, the company substantially reinforced its distribution network. As a result, there are now 7,016,000 agents serving clients nationwide.