Q3 2026 Star Health and Allied Insurance Company Ltd Earnings Call Transcript
Key Points
- Star Health and Allied Insurance Co Ltd (BOM:543412) reported a 23% year-on-year increase in gross written premium (GWP) for Q3 FY26, reaching INR 5,040 crore.
- The company's profit after tax (PAT) for Q3 FY26 increased significantly to INR 449 crore from INR 87 crore in Q3 FY25.
- Underwriting profit improved to INR 46 crore in Q3 FY26 from an underwriting loss of INR 79 crore in Q3 FY25, driven by a 320 basis point improvement in the combined ratio.
- The company's loss ratio decreased by 301 basis points year-on-year to 68.8% in Q3 FY26, indicating better claims management.
- Star Health's digital distribution channel grew by 35% year-on-year, contributing 9% to overall business and 20% to fresh business for the nine-month period of FY26.
- Medical inflation in India remains high, expected to exceed 12% to 13% in 2026, which could pressure future pricing and profitability.
- The company's expense ratio only slightly improved by 16 basis points year-on-year to 30.1% in Q3 FY26, indicating limited cost efficiency gains.
- Despite improvements, the retail claims ratio showed minimal improvement, decreasing only by 20 basis points year-on-year.
- The acquisition expense ratio increased to 26.9% in Q3 FY26 from 23% in the previous year, indicating higher costs associated with new business.
- The company faces ongoing challenges with medical inflation and the need for structural cost moderation through government interventions to maintain sustainability.
(audio in progress) industry is moving beyond penetration catch-up zone to a phase of sustained compounding, reinforcing its role in the core pillar of economic infrastructure.
We welcome the recent Sabka Bima Sabki Raksha. That is the amendment of the Insurance Laws Bill 2025. We believe it is a significant policy milestone towards further deepening of insurance penetration. The bill institutionalizes trust through the establishment of policyholder education and protection fund, strengthening the foundations for sustainable trust-led development.
We believe that health insurance in India is entering a structurally advantaged phase, with policy tailwinds and rising consumer intent translating into sustained demand growth. Health insurance is already the largest and the fastest growing segment within the non-life industry.
Within this, retail health is the most consequential value pool, voluntarily purchased by families across the country to protect their
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