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Star Health & Allied Insurance Company Ltd

| Audited Financial Results for the Quarter and Year Ended March 31, 2026

Report Source

⬤28th Apr 26

Summary : Star Health shows premium growth, positive profit, but negative underwriting.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Claims Paid: 11,28,686 lakhs (FY 2026)
  2. Commission & Brokerage: 2,67,333 lakhs (FY 2026)
  3. Employees' remuneration and welfare expenses: 1,98,318 lakhs (FY 2026)
  4. Gross Premium Written: 18,62,192 lakhs (FY 2026)
  5. Net Written Premium: 17,65,025 lakhs (FY 2026)
  6. Premiums Earned (Net): 16,59,669 lakhs (FY 2026)
  7. Segment-wise: Health Retail (15,74,451 lakhs FY), Health Group/Corporate (85,217 lakhs FY).
  8. Net Cash flows from Operating Activities: 1,87,344 lakhs
  9. Net Cash flows from Investment Activities: (1,06,685) lakhs
  10. Net Cash flows from Financing Activities: (3,148) lakhs
  11. Cash and cash equivalents at end of period: 1,44,354 lakhs
  12. Share Capital: 58,840 lakhs
  13. Reserves & Surplus: 7,00,083 lakhs
  14. Borrowings: 47,000 lakhs
  15. Total Assets: 8,02,122 lakhs
  16. Investments - Shareholders: 7,51,078 lakhs
  17. Investments - Policyholders: 12,50,156 lakhs
  18. Cash and Bank Balances: 1,44,356 lakhs
  19. Current Liabilities: 5,88,915 lakhs
  20. Provisions: 10,15,341 lakhs
  21. Standalone financial results.

Corporate Overview

  1. India (implied)
  2. Seasonality of the health insurance industry (higher claims in monsoon, higher premium income towards year-end).
  3. Reliance on Appointed Actuary for actuarial valuations (IBNR, IBNER, PDR).
  4. Specializes in health insurance products.
  5. Compliant with regulatory requirements (SEBI, IRDAI).
  6. Focused on financial performance and accurate reporting.
  7. Policyholders
  8. Health Retail
  9. Health Group/Corporate
  10. Solvency Ratio: 205% (as of March 31, 2026)
  11. Gross Premium Growth Rate: 11.31% (FY 2026)

Risk Factors

  1. Underwriting profit remains in negative.
  2. Industry seasonality impacts claims.
  3. New Labour Codes increase employee costs.
  4. Actuarial valuations rely on Appointed Actuary.

Key Drivers

  1. Strong gross premium growth rate.
  2. Healthy solvency ratio at 205%.
  3. Positive net cash flow from operations.
  4. Adopting new Indian accounting standards.

Auditor’s Report

  1. Unmodified opinion on financial results.
  2. Actuarial valuation of liabilities (IBNR, IBNER, PDR) and reliance on Appointed Actuary's certificate.
  3. Reliance on Appointed Actuary's certificate for actuarial valuations.

Board Commentary

  1. Dividend per share is Nil for the reported period.
  2. Seasonality of the health insurance industry.
  3. Financial impact of New Labour Codes on employee costs.
  4. Compliance with SEBI Listing Regulations, IRDAI Circulars, Companies Act, Insurance Act.
  5. Impact of New Labour Codes on employee benefits and gratuity expense.
  6. ESOP grants and allotments (4,44,000 nos. and 52,35,764 nos. respectively for FY 2026).

Corporate Governance

  1. Audit Committee and Board of Directors approved financial results.
  2. Audit Committee.

Management Discussion & Analysis

Future Strategy

  1. Adoption of Indian Accounting Standards (Ind AS) from FY 2026-27.
  2. Continuous monitoring of New Labour Codes and their financial impact.

Industry Overview

  1. Health insurance industry experiences seasonality, affecting claims and premium income.

Macroeconomic Outlook

  1. Impact of New Labour Codes on employee benefit provisions.

Operational Focus Areas

  1. Ensuring compliance with SEBI and IRDAI regulations.
  2. Accurate actuarial valuation of liabilities.

Performance Drivers

  1. Gross Premium Written
  2. Net Written Premium
  3. Premiums Earned (Net)
  4. Income from Investments

Risk Control Measures

  1. Monitoring and revising estimates for New Labour Codes impact.
  2. Actuarial estimates for claims incurred but not reported.

Critical Risks

  1. Seasonality of the health insurance business.
  2. Increased employee benefit provisions due to New Labour Codes.