STARHEALTH

Star Health and Allied Insurance Company Limited posts strong Q4 performance; outlook remains positive Star Health and Allied Insurance Company Limited delivered a solid performance in the fourth quarter, driven by a notable improvement in key operating metrics. The company’s claims ratio improved by 440 basis points year-on-year to 64.8%, while the combined ratio also strengthened to 94.8%, largely supported by better claims management. This steady improvement in claims ratio over recent quarters has been attributed to multiple factors, including strong growth in fresh premiums, regular price revisions, portfolio optimization, expansion of wellness and homecare initiatives, and enhanced fraud control measures. Looking ahead, the management remains confident of sustaining this positive trend in claims ratios, supported by continued premium growth, periodic price hikes, and the corrective actions implemented over the past few quarters. While profitability remains a key focus area, the company is targeting premium growth in the high-teens range and return on equity in the mid-to-high teens. Reflecting the improved outlook, estimates have been revised upward, with gross written premium (GWP) projections increased by around 2% and combined ratio assumptions reduced by 70–90 basis points. This has led to an expected 6–8% upside in profit after tax (PAT) for FY27–FY28 estimates.