Synopsis:
Shares of Star Health and Allied Insurance fell up to 7% after Q2 results showed net premium up 22.4% QoQ to ₹4,233.38 crore, while net profit plunged 79% to ₹54.9 crore.
The shares of the Mid-cap company specializing in health insurance, offering a variety of specialized plans for different needs, as well as personal accident and overseas travel insurance, declined by upto 7 percent following their Q2 results with a 79 percent decline in profit QoQ.
With a market capitalization of 27,338.44 Crores on Wednesday, the shares of Star Health and Allied Insurance Company Ltd declined by upto 6.5 percent, reaching a low of Rs. 462.20 compared to its previous close of Rs. 494.85.
What Happened
Star Health and Allied Insurance Company Ltd, engaged in health insurance, offering a variety of specialized plans for different needs, as well as personal accident and overseas travel insurance, has announced its Q2 results as follows:
Its Net premium written rose by 6.4 percent YoY from Rs. 3,975.03 Crores in Q2FY25 to Rs. 4,233.38 Crores in Q2FY26, and it rose by 22.4 percent QoQ from Rs. 3,457.40 Crores in Q1FY26 to Rs. 4,233.38 Crores in Q2FY26.
Its Net Profit YoY declined by 51 percent from Rs. 111 Crores in Q2FY25 to Rs. 54.9 Crores in Q2FY26, and it declined by 79 percent QoQ from Rs. 263 Crores in Q1FY26 to Rs. 54.9 Crores in Q2FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 0.93, compared to Rs. 4.47 in the previous quarter.
The company is almost debt-free with a low debt-to-equity ratio of 0.06. It has delivered a strong profit growth of 18.6 percent CAGR over the last five years. The ROCE of 12.0 percent and ROE of 9.37 percent indicate decent returns and efficient use of capital.
Company Overview & Others
Star Health and Allied Insurance Company Ltd. is an Indian health insurance provider, founded in 2006 and headquartered in Chennai. As India’s first standalone Health Insurance provider. Today, with over 14,000 Network Hospitals, 850+ branch offices spread across the country, over 6.80 lakh agents, and over Rs. 30,300 crore in paid claims.
It offers a wide range of products, including health, personal accident, and travel insurance, and has a large network of hospitals and agents. The company focuses on customer-centric services, including cashless treatment options, dedicated claims support, and innovative policies tailored to specific health needs.
The company has steady performance in the retail health market, with a 33% market share in FY24 and FY25, and 32% in H1FY25 and H1FY26, indicating stable leadership in the retail segment.
The GWP (Gross working premium) contribution is dominated by the Agency channel at 82.7%, followed by Digital at 8.7%, Banca at 7.1%, and Corporate at 1.5%, showing strong reliance on the agency network.
In FY25, the expense ratio rose slightly to 30.8% from 30.2% in FY24, while the claims ratio increased notably from 66.5% to 70.3%. As a result, the combined ratio moved up from 97.3% in FY24 to 101.1% in FY25, indicating higher overall costs and claims impact.
Written by Sridhar J
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