Q1 2027 Star Health and Allied Insurance Company Ltd Earnings Call Transcript
Key Points
- Gross written premium (GWP) increased 19% year-over-year to INR4,287 crore on a 1-by-N basis, driven by strong fresh retail health growth of 37%.
- Underwriting profit improved significantly to INR111 crore from INR16 crore in Q1 FY26, marking the fourth consecutive quarter of improvement.
- Combined insurance service ratio improved by 1.7 percentage points to 97%, reflecting better cost and claims management.
- Profit after tax (PAT) rose 25% year-over-year to INR550 crore, with normalized PAT up 44% to INR386 crore and annualized ROE improving to 15.6%.
- Proprietary distribution channels (agency and digital D2C) contributed over 90% of retail business, with D2C fresh business growing 142% year-over-year and 98% of customers being new to insurance.
- Retail market share declined to 29% from 31% in Q1 FY26, partly due to long-term policy reporting implications and a strategic focus on preferred segments.
- Insurance revenue growth of 13.4% lagged behind GWP growth of 19%, with convergence expected only gradually as long-term policies earn in.
- Loss ratio improvement of only 100 basis points despite strong fresh business growth and pricing actions, suggesting ongoing pressure from the back book.
- Other expenses rose 23% year-over-year, partly due to the loss of GST input credit on operating expenses, impacting cost efficiency.
- Growth in the second half of FY27 may moderate due to a high base from the GST waiver benefit in H2 FY26, potentially slowing momentum.
Ladies and gentlemen, good day, and welcome to Star Health and Allied Insurance Company Limited Q1 FY27 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Devyanshi Dave from AdFactors PR Investor Relations Team. Thank you, and over to you, Ms. Dave.
Good morning, everyone. From the senior management, we have Mr. Anand Roy, Managing Director and Chief Executive Officer; Mr. Amitabh Jain, Executive Director and Chief Operating Officer; Mr. Himanshu Walia, Executive Director and Chief Marketing Officer; Mr. Nilesh Kambli, Chief Financial Officer; Mr. Aneesh Srivastava, Chief Investment Officer, and Mr. Sombit Bhattacharyya, Head, Investor Relations.
Before we begin the conference call, I would like to mention that some of the statements made during today's call may be forward-looking in nature, including those related to future financial and operating performances, benefits and synergies of the company's strategies, future
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