STARHEALTHNSEQ4 & FY 2026May 05, 2026

Star Health and Allied Insurance Company Limited

8,511words
91turns
11analyst exchanges
6executives
Management on call
Anand Roy
Managing Director and Chief Executive Officer
Amitabh Jain
Executive Director & Chief Operating Officer
Himanshu Walia
Executive Director & Chief Marketing Officer
Nilesh Kambli
Chief Financial Officer
Aneesh Srivastava
Chief Investment Officer
Sombit Bhattacharyya
Head Investor Relations
Key numbers — 40 extracted
rs,
recalibration for us, focused towards strengthening our performance across the core operating levers, which is distribution, maintaining a strict underwriting discipline, claims management and high fo
94%
coverage for all by 2047. Reflecting this momentum, our new-to-insurance customers accounted for 94% of fresh additions in H2 FY26, as compared to an already healthy 92% in H1 FY26. At industry leve
92%
ance customers accounted for 94% of fresh additions in H2 FY26, as compared to an already healthy 92% in H1 FY26. At industry level, Retail Health insurance premiums have grown by 30.2% YoY in H2 FY2
30.2%
already healthy 92% in H1 FY26. At industry level, Retail Health insurance premiums have grown by 30.2% YoY in H2 FY26, significantly outpacing the broader non-life industry growth which came at 11.2%
11.2%
30.2% YoY in H2 FY26, significantly outpacing the broader non-life industry growth which came at 11.2% YoY during the same period. For the full fiscal, non-life insurance premiums grew by 9.3% YoY, wh
9.3%
ame at 11.2% YoY during the same period. For the full fiscal, non-life insurance premiums grew by 9.3% YoY, while Retail Health grew close to 20% YoY. Forward-looking reforms outlined by the regulat
20%
the full fiscal, non-life insurance premiums grew by 9.3% YoY, while Retail Health grew close to 20% YoY. Forward-looking reforms outlined by the regulator are supportive of long-term growth and
38%
highlights of our performance for Q4 FY26: • Fresh retail growth on N basis for the quarter was 38% YoY. Fresh growth was driven by both value and volume as the number of Retail Health policies exp
11%
sh growth was driven by both value and volume as the number of Retail Health policies expanded by 11% YoY. • New-to-insurance mix was 94% on fresh premium basis compared to 90% last year for the
90%
policies expanded by 11% YoY. • New-to-insurance mix was 94% on fresh premium basis compared to 90% last year for the same quarter. • Overall, GWP increased 17% YoY on N basis to Rs. 6,259 crore
, GW
nce mix was 94% on fresh premium basis compared to 90% last year for the same quarter. • Overall, GWP increased 17% YoY on N basis to Rs. 6,259 crore for the quarter. • Our IND AS underwriting profi
17%
on fresh premium basis compared to 90% last year for the same quarter. • Overall, GWP increased 17% YoY on N basis to Rs. 6,259 crore for the quarter. • Our IND AS underwriting profit for the quart
Guidance — 20 items
Anand Roy
opening
“FY26 was a year of strategic recalibration for us, focused towards strengthening our performance across the core operating levers, which is distribution, maintaining a strict underwriting discipline, claims management and high focus on customer experience and operating efficiency.”
Anand Roy
opening
“As we report our results for Q4 and for the full fiscal FY26, the green shoots of our operating turnaround in the previous quarters is now more pronounced in our underlying metrics, which I will be taking you through in today's call.”
Anand Roy
opening
“Reflecting this momentum, our new-to-insurance customers accounted for 94% of fresh additions in H2 FY26, as compared to an already healthy 92% in H1 FY26.”
Anand Roy
opening
“At industry level, Retail Health insurance premiums have grown by 30.2% YoY in H2 FY26, significantly outpacing the broader non-life industry growth which came at 11.2% YoY during the same period.”
Coming to our operating performance for the quarter
opening
“In line with our reporting convention in previous quarters, we will state our business numbers on N basis for Quarter 4 and for the full Financial Year FY26.”
Coming to our operating performance for the quarter
opening
“Going forward from next financial year, we would report 1/n measures for both business and growth.”
Coming to our operating performance for the quarter
opening
“Following are the highlights of our performance for Q4 FY26: • Fresh retail growth on N basis for the quarter was 38% YoY.”
Coming to our operating performance for the quarter
opening
“This was driven by an improvement in combined ratio by 2.7%, which was 98.4% in Q4 FY25 and came to 95.7% in Q4 FY26.”
Coming to our operating performance for the quarter
opening
“• As in the previous quarters, our loss ratio improvement continued for the third successive quarters with a 4% improvement from 69.2% in Q4 FY25 to 65.2% in Q4 FY26.”
Coming to our operating performance for the quarter
opening
“• • • The retail loss ratio improved 3% YoY to 64.8% in this particular quarter for FY26.”
Risks & concerns — 12 flagged
We have maintained that given the inherent characteristics of our business, the impact of all these measures would progressively manifest through the P&L.
— Anand Roy
Against this backdrop, Star Health has remained focused on maintaining leadership in Retail Health insurance and compounding a durable value-accretive franchise anchored on our four pillars, which is a risk-first approach, a consistent focus on ROE, a customer-centric execution, and a digital-first mindset.
— Anand Roy
The improvement in expense ratio reflects disciplined cost management and operating leverage, notwithstanding an absolute impact of around Rs.
— Coming to our operating performance for the quarter
On the portfolio management and recalibration strategies, we have undertaken disciplined recalibration of the portfolio, anchored towards improvement of risk-adjusted outcomes, progressive improvements in loss ratios have been driven through multiple levers: ➢ Analytics-led pricing ➢ Strengthened underwriting ➢ Portfolio optimization towards preferred segments, ➢ ➢ further improvements in fraud, waste and abuse management and institutionalization of our wellness-based consumer ecosystem.
— Coming to the business outcomes
We remain confident that disciplined execution at scale will translate into sustainable, risk-first balance of growth and ROE.
— Coming to the business outcomes
I think as NEP unwinds out of this fresh growth; do you think that the loss ratio improvement can still hold up for another few quarters before the impact of this new book starts coming in from the loss ratio perspective also?
— Prayesh Jain
Some of it is obviously new business, but if you can give some color on how the back book is trending and especially some of your vintage products which historically have witnessed some pressure, that would be really great.
— Dipanjan Ghosh
Now, once you reach a certain size and scale in terms of the proprietary channel and given the competitive pressure, what sort of strategies around ring-fencing, activation, including productivity or curtailing or controlling commission payouts in those channels, what are the strategies?
— Dipanjan Ghosh
What I am saying is that we will be calibrated and making it a risk-first approach and where we feel that there is opportunity, we will go for that.
— Anand Roy
I mean if even with a three-year deadline, if there is no sort of action or a nudge from regulators for non-compliance, then I mean it is very difficult to believe that in future regulations will be taken that seriously.
— Avinash Singh
Sir, this is a very difficult question for me to answer.
— Anand Roy
So, is there a thought process to smoothen out the impact of external impact?
— Mohit Surana
Q&A — 11 exchanges
Q
Thanks a lot for the opportunity and good morning to everyone. The loss ratio improvement has been a welcome change and a positive surprise for everybody. My questions were on this bit and the outlook going ahead. The key drivers here have been the reduction in Group Health business and the improvement on the retail loss ratios. However, the retail loss ratios are still above the level that you operated at in 2023-2024, which was closer to 65%-66%. It is currently somewhere around 68%. I wanted to understand what is the pathway of this 68% retail loss ratio going down to 65%-66%. Is that somet
Amitabh Jain
Thanks Supratim. We had a better than expected Quarter 4 as you would have seen in the numbers. This business, as we all know, has cycles and there could be cycles of frequency or severity going up in particular quarters. We have seen that over the years. But whatever series of actions we have done over the last one and a half years, I think we are well placed to see a continuous improvement in our loss ratios going forward. Specifically talking about dealing with the kind of cyclical events that happen, as stated by Anand in his address, we have been working on three specific areas on prevent
Q
Hi, good morning, everyone and congratulations on a good set of numbers. Just a few questions from my side. Firstly, Anand, you spoke about growth, right? While the industry has been seeing a very strong growth on the retail side, our growth is still lower than the industry? Obviously, the base kind of plays a role. But the gap that used to exist, even say a few years back, that gap still exists. Now other companies have also scaled up reasonably well over the last couple of years. So, how do you see the growth panning out for us in the next couple of years, given the tailwinds that we are see
Anand Roy
Yes, so Prayesh, thanks for the question. See, I think over the last two, three quarters, we have been articulating that growth is important. But for us, quality of growth is more important. And that's what we are focusing on. If you look at the quality of growth that we are building a franchise, which will be sustainable in the future, the new-to-insurance mix of the company has been the main focus. We are not so much focused on the portability side of business. Within the geographies also, we have taken some decisions on going slow in certain markets, as you are aware. So, I think we are not
Q
Hi, sir. Thank you for the opportunity and congrats on a good set of numbers. Three questions from my side, sir. First, wanted to understand what is the status in terms of price hikes, if you could give some color in terms of what products you are doing, so how much will be the proportion in terms of GWP and what is the quantum of price hike on an average that would be very helpful. Given that you highlighted in the opening remarks that there is both value and volume-led growth in fresh, I just wanted to understand the same from the renewal side also. How would have things transpired in terms
Anand Roy
Swarnabha, let me take some of those questions and I will request my colleagues to pitch in wherever needed. The price hike which you mentioned, our strategy has been that we will take an annual price increase in all our products. We will continue to follow that strategy. Of course, within that, we will see how do we optimize so that customers are given benefits based on their own behavior in terms of wellness and health conditions and so on and so forth. So, that we will continue to do. On the renewal side, you have asked about value and volume. I am happy to tell you that Star Health with th
Q
Hi, good morning, sir. A few questions from my side. First of all, I just wanted to look at your YoY growth in the value of claims that you have paid. Just wanted to understand if you were to break it between inflation for similar treatments, again to the extent possible, versus, let's say, claims frequency or incidence. I mean, how would that trajectory have fared in FY26 versus, let's say, the past few years or historically witnessed averages? The second question is now that you have started seeing improvement in your retail claims ratio on a YoY basis and the quantum of YoY change seems to
Amitabh Jain
So, on the first question, for the whole year, the frequency and severity as a whole we have been able to sort of manage it in the high single digits, which is the trend that has been there for us for some time now. If you were to talk about the quality of the renewal book that is seeing a consistent improvement in LR, given our pricing strategy that we have been following over the last one and a half years. So, on both those things are looking better. We believe that this as a strategy will continue as far as the pricing of the book is concerned. We are expecting to reprice almost 80% of the
Q
Yes. Thank you for the opportunity. Sorry, Anand and Amitabh, it's the same question, probably in a different way. See, the loss ratio improvement honestly was a positive surprise, very positive surprise. So, if you really want to attribute a major reason, is it that the last part of the improvement happened in the renewal book and naturally, the new contribution would have played a role, but the bigger delta came from the renewal book because of your cohort based or pricing strategy which you adopted maybe five quarters back. That is getting reflected in the numbers and therefore if that stra
Anand Roy
Sanketh, I think you have answered the question yourself. It's a sum of all parts, right? It's not one can lay a finger on any one particular item. It's everything that you mentioned. It's an improvement in the renewal book, the pricing strategy, the quality of sourcing of new business, the selection of geographies and profile of customers. Of course, over and above that, most importantly, having a very, very strong Fraud, Waste and Management (FWA) initiatives. So it's a combination of everything. I think we operate at a scale which probably others are not able to do and that's why the kind o
Q
Thanks for the opportunity. Congratulations on a great set of numbers. A couple of questions. I mean the first one more around that a lot of the actions you have taken on multiple parts of your business including the repricing of portfolio and all. Now of course the BAU based repricing or price increase we will continue. But do you see the way that medical inflation and your claims experience are going forward- I mean any sort of a major repricing need is at least not there in FY27 and it will be normal I mean whatsoever single digit or whatsoever possible typical price increase. So, is that c
Anand Roy
Yes Avinash, first of all thank you for the good wishes and see over the last five to six quarters we have been taking this pricing corrections across all our products and as you rightly put it we will be taking this in the future as well. We do not foresee any particular change in the strategy or any increase that is beyond normal, we do not see that. So, we continue to maintain the current strategy, and we believe that that should be more than sufficient for us to maintain the target combined ratio that we have. So, that is one. As far as the Bima Sugam platform is concerned I think the proj
Q
Yes, thanks for the opportunity. Two questions. Firstly, sir, you have talked about continuing with the price hikes in your portfolio. Given the sensitivity around GST cut being passed on to the consumers and government indicating they are keeping a close eye on that, how do you think you will be able to manage price hike in the near term which is not overlapping or compensating for some of the GST loss? I mean it optics, I understand, but do you believe this will be easier to do than how it looks?
Anand Roy
See Rishi, the pricing strategies are all done beforehand in the sense that pricing strategies are based on product performance. It has nothing to do with GST. GST benefits are fully passed on to the consumers. The pricing strategies of the company is based on the performance of the product in terms of the loss ratios. On that basis only we are taking the price increases. I believe that it should be fair to all the stakeholders. It is based on fully defined actuarial principles, and I don't think there should be any resistance there. Fair enough, sir. Thank you. The other question is, it has b
Q
Thanks for the opportunity and congratulations for a good set of numbers. So, first question is on NEP mix. If you can share, what is the share of new and renewal for FY26 and FY25 on NEP basis?
Nilesh Kambli
Okay, NEP basis, as you mentioned, a good proportion of the long-term business is coming in. It is in the range of 2% difference. It has been 80:20 and it has changed by 100-150 bps on premium basis Next year also this ratio should further increase because as these long-term policies, business will get accrued in NEP. Is that a right understanding? Yes, it will continue to improve. That's right. Secondly, we have seen a good improvement in Group Health claims ratio. I think we have been defocusing on that segment for last one year. What is the strategy on that segment going forward? Do we expe
Q
Hi. Thanks a lot for the opportunity for this follow-up. So, just two questions. One, you have transitioned to this Medi Assist platform. It has been now nearly one year. So, just wanted to understand how is that transition playing out? What are the savings that you are getting and how should we think about that playing out over the next couple of years? That's one. Secondly, on this IRDAI initiative regarding Public Insurance Registry, wanted to understand how do you see that impact loss ratios, particularly on the fraud and waste side? If you could give some color there, that would be helpfu
Amitabh Jain
So, on the platform shift on the claims processing, that is now nearly complete. We are just entering the final phase of our last set of products that will be shifted on to that platform. By this quarter end, I think we should be fully through. So, we are clearly seeing efficiencies coming across for which we had thought for the platform and that's playing out. More importantly, it's not simply a matter of efficiency, but also the effectiveness of managing our claims better and giving our customers a better experience. On both those fronts, we are doing fine. On the PIR side, this is a very go
Q
Hi, sir. Congratulations. From my side, I just wanted to know, since historically we have had ups and downs in terms of loss ratios and often external environment has also played a part in it. So, how do you assess the current external environment in terms of the healthcare, lifestyle changes, as well as some of the seasonal stuff? Second, in some way, is there a thought process to smoothen out some of these movements over time? Because often the profit and loss and loss ratios kind of get impacted by changes in external environment while we are trying to improve the internal processes and pol
Anand Roy
Yes, Mohit. So, that's a good question. I think you will be happy to know that there is a lot of engagement now happening at various stakeholder levels on the external environment side to manage the piece that you are talking about, whether it is the GI Council creating a common empanelment of hospitals, whether it is the IRDAI and GI working together to bring the payers and providers together on a single platform. Five working groups have been created. We believe that all these initiatives will over time reduce the friction and at the same time reduce the challenges that we used to face earli
Q
Thank you everyone for joining the call. It has been one of the turnarounds for Star Health in terms of higher retail growth and improvement in the combined ratio driven by an improvement in loss ratio. The normalized PAT with 8% investment yield has seen a robust growth to Rs. 1,222 crore. We continue to build on that in the coming future. We will continue to execute our strategy with more conviction and confidence and thanks for your continued support. Thank you very much.
Management
Speaking time
Anand Roy
15
Moderator
13
Amitabh Jain
9
Nidesh Jain
7
Nilesh Kambli
6
Prayesh Jain
5
Dipanjan Ghosh
5
Himanshu Walia
5
Sanketh Godha
5
Supratim Dutta
4
Opening remarks
Devyanshi Dave
Thank you. Good morning, everyone. From the Senior Management, we have with us Mr. Anand Roy – Managing Director and Chief Executive Officer, Mr. Amitabh Jain – Executive Director & Chief Operating Officer, Mr. Himanshu Walia – Executive Director & 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 the course of today's call may be forward-looking in nature, including those related to the future financial and operational performance, benefits and synergies of the company's strategies, future opportunities and growth of the market of the company services. Further, I would like to mention that some of the statements made in today's conference may involve risks and uncertainties. Thank you and over to you, Mr. Roy.
Anand Roy
Thank you. Good morning and thank you for joining Star Health's Earnings Call for the 4th Quarter and for the full Financial Year FY25-26. FY26 was a year of strategic recalibration for us, focused towards strengthening our performance across the core operating levers, which is distribution, maintaining a strict underwriting discipline, claims management and high focus on customer experience and operating efficiency. We have maintained that given the inherent characteristics of our business, the impact of all these measures would progressively manifest through the P&L. Team Star Health has executed and continues to execute the strategic blueprint with consistency and conviction. As we report our results for Q4 and for the full fiscal FY26, the green shoots of our operating turnaround in the previous quarters is now more pronounced in our underlying metrics, which I will be taking you through in today's call. I will start by outlining the broader sectoral context and ecosystem trends wh
Coming to our operating performance for the quarter
In line with our reporting convention in previous quarters, we will state our business numbers on N basis for Quarter 4 and for the full Financial Year FY26. Going forward from next financial year, we would report 1/n measures for both business and growth. Following are the highlights of our performance for Q4 FY26: • Fresh retail growth on N basis for the quarter was 38% YoY. Fresh growth was driven by both value and volume as the number of Retail Health policies expanded by 11% YoY. • New-to-insurance mix was 94% on fresh premium basis compared to 90% last year for the same quarter. • Overall, GWP increased 17% YoY on N basis to Rs. 6,259 crore for the quarter. • Our IND AS underwriting profit for the quarter was Rs. 186 crore, an increase of 200% YoY over Rs. 62 crore in Q4 FY25. This was driven by an improvement in combined ratio by 2.7%, which was 98.4% in Q4 FY25 and came to 95.7% in Q4 FY26. • As in the previous quarters, our loss ratio improvement continued for the third succes
Coming to the business outcomes
We continue to build a very diversified granular retail franchise focused on ROE-centric growth through preferred geographies and segments and channels, which meet our profitability thresholds. Notwithstanding all the underwriting discipline above, we have maintained a category leadership in Retail Health segment with market share at 31.3% in FY26. Our strategic choices, aligned with the priorities outlined above, have translated into tangible benefits as evidenced through the underwriting profitability improvements. Our proprietary distribution channels, which are the agency channel and the digital D2C, now contribute over 90% of the retail business and positions us to deepen the insurance penetration beyond the urban areas with emphasis on new-to-insurance customers. We will continue to focus on our preferred segments, which scale faster with significantly higher growth rates compared to the national average. On the portfolio management and recalibration strategies, we have undertake
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