Mumbai: Star Health and Allied Insurance Company Limited reported a net profit of Rs 111.34 crore for the quarter ended March 31, 2026, marking a sharp jump from Rs 0.51 crore in the year-ago period, aided by improved claims experience and steady investment income.
The insurer, which accounts for one-third of all individual health insurance business in the country, saw its performance supported by strong premium growth. Net written premium rose 28.38% sequentially to Rs 5,598.57 crore from Rs 4,360.91 crore in the December quarter. Even as business volumes expanded, claims outgo moderated, with total incurred claims at Rs 2,805.02 crore, down 3.72% from Rs 2,913.47 crore in the preceding quarter.
Investment income rose 16% to Rs 216.36 crore in the March quarter from Rs 185.90 crore a year earlier.
Focus on Retail Segment
Nilesh Kambli, the company's senior management, said, "Our strategy is now sharply focused on retail, which accounts for nearly 95% of the portfolio, with a conscious exit from loss-making group and corporate segments. The rate revisions taken last year are now fully reflecting in premiums, driving a sustained improvement in retail loss ratios over the past three quarters." He added that while lower GST on pharmaceuticals has helped moderate claims, the lack of input tax credit has pushed up operating costs, leading to a marginal increase in the expense ratio.
Annual Performance
Under Ind AS accounting, the company reported a full-year profit after tax of Rs 911 crore for FY26, up 16% from Rs 787 crore in the previous year. Gross written premium rose 16% year-on-year to Rs 20,369 crore, while the combined ratio improved to 98.8% from 101.1%, indicating a return to underwriting discipline.
The insurer reported an underwriting profit of Rs 206 crore compared with a loss of Rs 165 crore in FY25, even as the loss ratio moderated to 68.7%. For the March quarter, the Ind AS combined ratio improved to 95.7%.
Quarterly Comparison
On a year-on-year basis, profitability gains were driven by a lower claims ratio, which declined to 64.82% from 69.24% a year earlier. However, expense pressures persisted, with the expense ratio rising to 20.38% from 17.93%. Net expenses, including commissions and operating costs, increased to Rs 1,676.42 crore from Rs 1,443.38 crore.
