Star Health and Allied Insurance delivered exceptional financial results for the September quarter of FY27, achieving a net profit of ₹264.81 crore. According to the latest results announced on Tuesday, this represents a remarkable 233% increase from the ₹79.58 crore profit recorded in the corresponding quarter of the previous year. The insurer has broadly welcomed the Insurance Regulatory and Development Authority of India's (IRDAI) proposed distribution reforms, with Managing Director and CEO Anand Roy stating that the company's internal estimates show a credible path to meeting the proposed expense cap limits. The company also reported an underwriting profit of ₹99 crore, compared with a loss of ₹40 crore a year earlier, demonstrating significant operational improvements.
The company's financial performance was supported by strong revenue growth, with insurance revenue rising 15.4% to ₹5,073.77 crore in Q2 FY27 compared to ₹4,395.78 crore in the year-ago period. As reported by The Economic Times, the normalised profit after tax increased 10.1% to ₹840 crore, indicating sustained operational strength. The company's underwriting result turned positive at ₹198 crore in H1 FY27, compared with a loss of ₹40 crore in the year-ago period, reflecting improved underwriting practices and risk management. Retail fresh premium rose 36% to ₹1,630 crore in the first half, with 93% of new customers buying health insurance for the first time.
The company's operational efficiency showed notable improvement with the claims ratio declining to 69% during the quarter. As reported by The Economic Times, this reduction in the claims burden compared to previous periods indicates better claims management and cost control measures implemented by the insurer. The improved claims ratio shows a decline from 71.5% recorded in the same quarter last year, indicating a lower claims burden relative to the relevant premium base. This improvement in claims ratio suggests enhanced underwriting practices and operational efficiency that directly impacted the company's bottom line performance.
Star Health maintained a robust financial position with solvency ratio standing at 2.05 during the quarter, well above regulatory requirements. The company successfully redeemed ₹40,000 lakh worth of NCDs during the quarter, demonstrating strong liquidity management and debt servicing capabilities. This debt reduction, combined with the improved operational metrics, positions the insurer well for continued growth and strategic initiatives in the competitive insurance market.
Star Health has backed IRDAI's distribution reforms and specifically wants regulation-driven covers excluded from expense-cap calculations. According to Roy, linking commissions to renewal rates "removes incentive for commission-driven churn between insurers, which we see happening in large numbers." The company's agent-led model contributes 85.3% of gross premium in the first half, with the agency network expanding to 8.7 lakh agents after adding 39,000 agents. Roy noted that the company's business model remains resilient to reforms since over 90% of retail business comes through its own agents and direct-to-customer channels. The insurer has no immediate plans to cut premiums and aims to grow fresh business by more than 20% over the long term, though headline growth will slow in the second half as last year's GST exemption surge becomes part of the base.
