Star Health and Allied Insurance Company has delivered impressive Q1 FY27 results, with net profit surging 25.46% year-on-year to ₹549.73 crore compared to ₹438.18 crore in the corresponding quarter of the previous fiscal. The company's total income increased to ₹4,917.20 crore from ₹4,336.42 crore in the same period a year ago, demonstrating strong top-line growth. The strong performance was driven by robust operational metrics and improved service delivery across key segments, with healthy investment income growth also contributing to the good improvement in reported PAT. The underwriting profit for Q1 FY27 was ₹111 crore compared to ₹16 crore for Q1 FY26, demonstrating significant improvement in core underwriting profitability.
The company demonstrated strong operational momentum with gross written premium (GWP) growing 19% year-over-year to ₹4,287 crore, up from ₹3,605 crore in the year-ago period. The Combined Insurance Service Ratio improved by 1.7% to 97.0%, down from 98.7% in Q1 FY26, indicating enhanced operational efficiency. During the quarter, Star Health settled 9.6 lakh claims with the Retail Claims Settlement Ratio improving by 1% to reach 91%. Additionally, persistency increased 3% YoY to 102%, while the Net Promoter Score gained 12 points to reach 65 as of June 2026. The company's proprietary digital D2C Channel contributed 16% of fresh retail sales with a 142% YoY growth, and 97% of fresh policies were sourced digitally.
Anand Roy, CEO & Managing Director, stated that the performance reflects the strength of fundamentals and consistency of execution, with sustainable growth driving improvement in core underwriting profitability. Roy emphasized that the company aims to achieve Gross Written Premium of ₹24,000 crore in FY27. Nilesh Kambli, CFO, highlighted that there was good top line and bottom line growth this quarter, with loss ratio and expense ratio showing improvement, resulting in a robust financial result for underwriting performance. The company reported that 90% of claims are approved in less than one hour's time, and at discharge, around 95% is completed within a three-hour period.
As of June 30, 2026, Star Health maintained a comprehensive multi-channel distribution network comprising 900+ branch offices, 8.5 lakh+ agents, 16,000+ network hospitals, and 18,500+ employees. The company's extensive network provides comprehensive healthcare coverage across India, supporting its strong market position in the health insurance sector. This robust distribution infrastructure enables the company to serve diverse customer segments effectively while maintaining operational efficiency.
While the company delivered strong operational performance, the solvency ratio declined to 209% from 222% in the same quarter a year ago, indicating some deterioration in financial strength. However, the significant improvement in underwriting profitability and sustained premium growth demonstrate the company's operational excellence. The results reflect Star Health's ability to maintain market leadership while focusing on profitable growth and operational efficiency across its health insurance portfolio.
