Star Health and Allied Insurance Company Limited — Results, 29-07-2025: Integrated Filing- Financial

Here's a summary of Star Health and Allied Insurance's Q1 FY26 financial results:

1) **Revenue Performance:** Gross Premium was ₹3,475.92 Cr, a 7.8% YoY decline. However, this reported figure was impacted by a new accounting policy that reduced premium recognition by ₹330.03 Cr. Without this change, Gross Premium would have seen a slight growth of approximately 0.95% YoY.

2) **Profitability and EPS:** Net profit surged dramatically to ₹262.52 Cr from ₹0.51 Cr in the prior year, leading to Basic EPS of ₹4.47 (vs ₹0.01). The Combined Ratio, a key profitability metric, improved to 99.19% from 99.74%, indicating better underwriting performance.

3) **Operational Costs:** While the Incurred Claim Ratio marginally increased to 69.24% (from 67.58%) and the Expenses of Management Ratio rose to 32.46% (from 29.95%), the overall Combined Ratio showed an improvement.

4) **Key Metrics:** The Solvency Ratio remains robust at 2.22 (vs 2.27), comfortably above regulatory requirements.

5) **Balance Sheet Health:** Net worth strengthened to ₹7,244.97 Cr (from ₹7,022.03 Cr YoY), and borrowings remain low at ₹470 Cr, reflecting a solid financial position.

6) **Strategic Outlook:** Management notes the industry's seasonality, with higher claims during monsoons and peak premiums towards year-end. A one-time penalty of ₹3.39 Cr for a cybersecurity incident was provided for.

7) **Final Takeaway:** Despite the accounting-related revenue adjustment, these results signal positive momentum driven by strong profit recovery and improved underwriting efficiency.