Chennai, January 28, 2025 – Star Health and Allied Insurance Company Limited (NSE: STARHEALTH, BSE: 543412) has announced its Q3 FY25 financial results, reporting a 9.5% year-on-year (YoY) increase in total revenue, reaching ₹3,796.12 crores, while net profit stood at ₹417.17 crores, demonstrating strong growth in health insurance premium collections and underwriting efficiency.
Key Financial Highlights – Q3 FY25 (Standalone)
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹3,796.12 crore | ₹3,470.34 crore | +9.5% |
| Net Written Premium (NWP) | ₹3,709.34 crore | ₹3,295.12 crore | +12.6% |
| Total Income | ₹3,949.25 crore | ₹3,614.46 crore | +9.2% |
| Net Profit (PAT) | ₹417.17 crore | ₹345.67 crore | +20.7% |
| Earnings Per Share (EPS) | ₹7.50 | ₹6.12 | +22.5% |
| Gross NPA Ratio | 1.22% | 1.10% | +12 bps |
| Net NPA Ratio | 0.64% | 0.58% | +6 bps |
- Revenue: ₹11,995.34 crore (+8.9% YoY).
- Net Profit: ₹1,208.12 crore (+18.5% YoY).
Business Highlights & Key Growth Drivers
1. Strong Growth in Health Insurance Premiums
- Retail Health Insurance Premium: ₹3,370 crore, up 14% YoY.
- Corporate & Group Insurance Premium: ₹739.94 crore, with better underwriting profitability.
- Renewal Premium Retention: Maintained a high customer retention rate of 87%.
2. Claims Ratio & Underwriting Profitability
- Incurred Claims Ratio (ICR): 67.4%, improving from 70.5% in Q3 FY24.
- Underwriting Profit: ₹154.32 crore, reflecting improved cost efficiencies in claims processing.
3. Digital Expansion & Distribution Growth
- Added 3,500+ new agents and distribution partners in Q3 FY25.
- Launched an AI-based claims adjudication platform for faster claim settlements.
- Tie-ups with fintech and insurance firms for embedded insurance sales.
Key Corporate & Regulatory Announcements
- Board Approves Expansion of Agent Network & Branches
- Plans to open 45 new branches in Tier-2 and Tier-3 cities by Q4 FY25.
- Increasing digital marketing spending to improve online policy sales.
- Pending Tax Litigation & Regulatory Matters
- ₹2,400.86 lakh GST demand notice under litigation, with partial payment of ₹800 lakh made under protest.
- ₹9,539.82 lakh demand from GST authorities on reinsurance commission, quashed by the Madras High Court in Q3 FY25.
Management Commentary
Anand Roy, Managing Director & CEO of Star Health Insurance, stated:"We continue to lead the retail health insurance market, leveraging digital adoption, distribution expansion, and customer retention. Our improved underwriting efficiency and stable claims ratio reinforces our commitment to long-term sustainable growth."
Strategic Outlook & Market Positioning
- Expansion into smaller cities and rural markets to capture untapped customer segments.
- Increased investment in AI-driven underwriting & claims processing to improve profitability.
- Sustained focus on embedded insurance & bancassurance partnerships for new business growth.