Star Health And Allied Insurance Company Limited has informed the Exchange about Investor Presentation
Date: January 30, 2025 Place: Chennai Ref: SHAI/B & S/SE/185/2024-25
To, The Manager, Listing Department, BSE Limited, Phiroze Jeejeebhoy Tower, Dalal Street, Mumbai – 400051, Mumbai – 400001, Maharashtra, India. Maharashtra, India. Scrip Code: 543412
To, The Manager, Listing Department, National Stock Exchange of India Limited, Exchange Plaza, 5th Floor, Plot C/1, G Block, Bandra-Kurla Complex,
Symbol: STARHEALTH
Dear Sir/ Madam,
Sub: Earnings Call Presentation- Q3 & 9M– FY 2025
Further to our letter SHAI/B & S/SE/181 /2024-25 dated January 28, 2025 regarding Earnings Call Presentation Q3 & 9M – FY2025, in Page 3 under the Key Performance Indicators (1/2), the Retail Health Renewal Premium Ratio for 9 Months Ended December 31, 2023 shall be read as 98.2%. The revised presentation is enclosed for your information and records.
The above information is also being hosted on the Company's website at www.starhealth.in.
For Star Health and Allied Insurance Company Limited
Jayashree Sethuraman Company Secretary & Compliance Officer
Encl.: As above
Investor Presentation 9MFY25 Jan 2025
Key Pillars of our Strategy
1
2
3
4
5
6
Leadership in Retail Health
Well Spread Distribution Network
Investment in Technology
Strong Financial Management
Focus on Risk Management
Superior Operating Performance
32.2% Retail Health Insurance Market Share
56.1% Retail Health Market Share among SAHIs
761k Agents; 910 Branches
70% Digital Premium Collection
645 Cr PAT
39% Fresh Business from Non-agency
7% Digital Vertical Contribution to GWP
9.7% Non-annualized ROE
Predictive Loss Ratio Model
82% of Retail Health NOP– 5 Lakhs+ Sum Insured
2.22x Solvency Ratio (premium based)
15.9% Opex / GWP ratio
With effect from Oct 01,2024, Long Term Products are accounted on 1/n basis, as mandated by IRDAI
Key Performance Indicators (1/2)
Particulars
Fiscal Year Ended March 31
9 Months Ended December 31
(INR Crore, unless otherwise stated)
GWP
Period-on-period growth of GWP
Retail Health Renewal Premium Ratio
Number of agents (in '000s)
Number of hospitals in network (in actual number)
Combined Ratio
Combined Ratio (without 1/n)
Underwriting Profit/(Loss)
Investment Income
Investment Yield (Annualized)
Profit/(Loss) after tax
Net worth
Return on equity*
2023
12,952
13%
95%
626
2024
15,254
18%
98%
701
14,203
14,295
95.3%
95.3%
205
835
6.9%
619
5,430
96.7%
96.7%
90
1,084
7.7%
845
6,339
12.40%
14.40%
2023
10,286
18%
98.2%
684
14,249
98.3%
98.3%
180
790
7.6%
703
6,195
12.1%
2024
11,643**
13%
94%
761
14,343
101.8%
101.3%
-104
996
8.3%
645
7,022
9.7%
*Return on Equity = Profit After Tax/Average Net Worth. Note: Numbers are basis 1/365 URR method. ROE is non-annualized .
** Incl. 40Cr RI Inward
With effect from Oct 01,2024, Long Term Products are accounted on 1/n basis, as mandated by IRDAI
Key Performance Indicators (2/2)
Claims, Expense and Combined Ratio
For 9MFY25, Without 1/n
Profit After Tax (PAT)
95.3%
96.7%
98.3%
101.8%
101.3% CoR
(INR billion)
8.5
6.2
7.0
6.5
Claims Ratio
65.0%
66.4%
67.3%
70.7%
Expense Ratio
30.3%
30.3%
31.0%
31.2%
30.6% Expense Ratio
FY23
FY24
9MFY24
9MFY25
FY23
FY24
9MFY24 9MFY25
Note: All numbers are basis 1/365 URR method. * 0.6% of PHC, telemedicine, OPD and wellness initiative included in 9MFY25 Claims ratio
With effect from Oct 01,2024, Long Term Products are accounted on 1/n basis, as mandated by IRDAI
Agenda
Our Strategy
Performance Update
Leadership in Attractive Retail Segment
Retail Health Market Share
Gross Written Premium (INR billion)
354
34%
422
33%
287
33%
328
32%
FY23
FY24
9MFY24
9MFY25
Retail Health Industry Size in INR billion
153
142
130
121
103
96
116
107
8 FY23
11
FY24
7 9MFY24
0.4
9
9MFY25
Retail Health, Travel & PA Group health RI Inward
With effect from Oct 01,2024, Long Term Products are accounted on 1/n basis, as mandated by IRDAI
Largest & Well Spread Distribution Network
Total Agency Force In 000’s
Sponsored Health Agency Force
550
626
701
760
79
92
111
118
FY22
FY23
FY24
9MFY25
FY22
FY23
FY24
9MFY25
Channel wise mix, 9MFY25*
Extensive Branch Network
Corporate 4%
Digital 7%
Banca 7%
807
835
881
910
*Excl RI Inward
Individual Agents 82%
FY22
FY23
FY24
9MFY25
With effect from Oct 01,2024, Long Term Products are accounted on 1/n basis, as mandated by IRDAI
Extensive Footprint in Alternate Distribution Channels
Partner Integration
11%
Overall Banca Growth
69
Banca + NBFC tie-ups
With effect from Oct 01,2024, Long Term Products are accounted on 1/n basis, as mandated by IRDAI
Continued Focus on Digital Growth
22%
Fresh Digital Growth
8.6M+
Customer App downloads
70%
Digital premium collection
1Mn+
Monthly Active User (Dec-24)
154k
Wellness Enrollments
Play store rating 4.5 App store rating 4.6
With effect from Oct 01,2024, Long Term Products are accounted on 1/n basis, as mandated by IRDAI
Diversified & Specialized Product Suite
Star Cancer Care Policy
Star Senior Citizens Red Carpet Health Insurance Policy
Star Cardiac Care Policy
Young Star Policy
Star Diabetes Safe Policy
Women Care Policy
Retail Premium Mix for Specialized Products
15.5%
14.2%
14.7%
13.7%
FY23
FY24
9MFY24
9MFY25
With effect from Oct 01,2024, Long Term Products are accounted on 1/n basis, as mandated by IRDAI
Strong Domain Expertise Driving Superior Claims Ratio
Net Incurred Claims Ratio
65.0%
66.5%
67.3%
70.7%
Increasing Sum Assured
Growth of Average Sum Assured in Retail Health policies
11%
10%
10% 10%
FY23
FY24
9MFY24
9MFY25
FY24
9MFY25
New
Overall
Net incurred claims ratio is defined as net incurred claims divided by net earned premium. All numbers are basis 1/365 URR method. 0.6% of PHC, telemedicine, OPD and wellness initiative included in 9MFY25 Claims ratio
Retail & Group Claims Ratio
Retail Claims Ratio
Group Claims Ratio
66.7%
69.2%
90.4%
77.3%
9MFY24
9MFY25
9MFY24
9MFY25
Net incurred Loss ratio is defined as net incurred claims divided by net earned premium. All numbers are basis 1/365 URR method. 0.6% of PHC, telemedicine, OPD and wellness initiative included in 9MFY25 Claims ratio
Extensive Claims Processing and Network Negotiation
12.1m
No of Claims Settled since Inception(1)
540bn
Amount of Claims settled since Inception(1)
ANH(2) Share…
Proportion of total cashless claims
67%
74%
69%
77%
FY23
FY24
9MFY24
9MFY25
96%
Cashless processing < 3 hr
14k+
Network Hospitals
Note: (1) Data as of Dec 31, 2024 (2) ANH refers to Agreed Network Hospitals with better negotiated package-based pricing. On number of claims count.
Agenda
Our Strategy
Performance Update
Financial Performance Combined Ratio
95.3%
96.7%
98.3%
101.8%
Claims Ratio
65.0%
66.5%
67.3%
70.7%
Expense Ratio
30.3%
30.2%
31.0%
31.2%
FY23
FY24
9MFY24
9MFY25
For 9MFY25, Without 1/n
101.3% CoR
30.6% Expense Ratio
Opex/GWP Ratio
15.9%
15.7%
16.9%
15.9%
FY23
FY24
9MFY24
9MFY25
Profit Before Tax (PBT)
(INR billion)
Profit After Tax (PAT) (INR billion)
11.3
8.3
9.4
8.6
8.5
6.2
7.0
6.5
FY23
FY24
9MFY24
9MFY25
FY23
FY24
9MFY24
9MFY25
All numbers are basis 1/365 URR method. 0.6% of PHC, telemedicine, OPD and wellness initiative included in 9MFY25 Claims ratio With effect from Oct 01,2024, Long Term Products are accounted on 1/n basis, as mandated by IRDAI
Robust Investment Performance
Total Investments Assets
Investment Income
INR billion
Investment Leverage
INR billion
200
150
100
50
0
2.4x
2.4x
2.3x
2.3x
134
155
144
167
FY23
FY24
9MFY24
9MFY25
2.5
2.0
1.5
1.0
0.5
0.0
10.8
8.3
7.9
10.0
FY23
FY24
9MFY24
9MFY25
Steady Returns...
…with fixed income portfolio
(Annualized)
6.9%
7.7%
7.6%
8.3%
FY23
FY24
9MFY24
9MFY25
68%
G.Sec SDL, AAA, TREPs
Long-Term Funds
Short-Term Funds
Government Securities, State Development Loans, Corporate Bonds, Fixed Deposits, REITs, InvITs and ETFs
Bank FDs, Overnight Mutual Funds, CPs, CDs, T-Bills, CMBs, Short Maturity Bonds and Tri-Party REPOs (TREPs)
THANK YOU
Glossary
Particulars
FY
GWP
GEP
CAGR
Y-o-Y
URR
ANH
PA
SME
CoR
TAT
Financial Year
Gross Written Premium
Gross Earned Premium
Cumulative Annual Growth Rate
Year-on-Year
Unexpired Risk Reserve
Agreed Network Hospitals
Personal Accident
Small and Medium Enterprises
Combined Ratio
Turn Around Time