Star Health Q1 FY27: Profit Up 25% to ₹550 Crore, Underwriting Profit at ₹111 Crore
Star Health's Q1 FY27 PAT surged 25% YoY to ₹550 crore. Underwriting profit improved significantly to ₹111 crore. Gross return premium grew 19% YoY to ₹4,287 crore (1/N basis). Fresh Retail Health GWP increased 37% YoY to ₹730 crore. Normalized PAT rose 44% YoY to ₹386 crore, with ROE at 15.6%.
The results show robust financial health and strategic execution, including strong growth in key metrics and improved profitability, which are material for investors and the market.
The company reported strong year-on-year growth in profit after tax, significant improvement in underwriting profit, and increased gross written premium, indicating a positive financial performance.
Star Health and Allied Insurance Company Limited announced its financial results for the first quarter of FY27 on August 5, 2026. The company reported a Profit After Tax (PAT) of ₹550 crore, marking a 25% year-on-year increase. The underwriting result for the quarter stood at ₹111 crore, showing a significant improvement from ₹16 crore in Q1 FY26, marking the fourth consecutive quarter of enhanced underwriting profitability. The Combined Insurance Service Ratio (CISR) improved to 97% from 98.7% in the prior year's quarter.
Gross return premium on a 1/N basis increased by 19% year-on-year to ₹4,287 crore, while on an N basis, it was ₹4,672 crore, also a 19% increase. Fresh Retail Health Gross Written Premium (GWP) saw a substantial rise of 37% year-on-year to ₹730 crore (₹1,039 crore on an N basis, up 35% YoY). The new-to-insurance mix in fresh retail business was 94%, up from 90% in Q1 FY26. Investment income grew by 10% YoY to ₹644 crore.
Under a normalized framework, PAT increased by 44% year-on-year to ₹386 crore, with an annualized Return on Equity (ROE) improving to 15.6% from 12.2% in Q1 FY26. The company's retail market share was 29% in Q1 FY27. Proprietary channels, including agency and digital direct-to-consumer (D2C), contributed over 90% of the retail business. The agency network expanded to 8.5 lakh agents, with a 19% YoY improvement in productivity, and non-metro geographies showed 3.5 times growth compared to metro areas. Digital D2C fresh business grew by 142% YoY.
The company highlighted improvements in customer-centric metrics, with a retail claim settlement ratio of 91% (up 1% YoY) and a renewal ratio of 102% (up 3% YoY). The Net Promoter Score (NPS) improved by 12 points to 65 points. Over 9.5 lakh claims were settled in the quarter, with over 80% being cashless. Investments in digital and AI continue, with the ATOM Pro distribution app receiving an InsurTech Product Excellence award. The customer app has reached approximately 16 million downloads.
Management reiterated their strategy focused on sustainable growth, enhancing core underwriting profitability through data and analytics, and maintaining customer centricity with technology-led capabilities, aiming for a mid- to high-teen ROE.
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Star Health and Allied Insurance Company Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Star Health and Allied Insurance Company Limited. Read the original for the full detail.