Star Health rallies on 13% growth in gross written premium and highest ever PAT of Rs. 619 Cr in FY23

The shares of Star Health and Allied Insurance Company ended today's trading session on a green note after it declares impressive FY23 performance.

One of India’s leading health insurance company, registered a Gross Written Premium (GWP) of Rs. 12,952 crore in FY23, a growth of 13% over the same period a year ago period at ₹11,463.47 Cr. Whereas its GWP was Rs 4199.23 cr during Q4FY23 as against Rs 3096.68 Cr in the year-ago quarter.

Star Health’s profit after tax (PAT) stood at Rs. 619 crore for the financial year ended March 31, 2023, against a loss of Rs. 1,041 crore in FY22. During the quarter ended March 2023, the company's net profit reached ₹101.79 cr as against a net loss of ₹82.04 Cr during Q4FY22.

The Board of Directors today appointed Mr. Anand Roy as the Chief Executive Officer and Managing Director of the company and Mr. V Jagannathan as the non-executive Chairman of the board.

“I am happy to announce that I have decided to take a non-executive role in the company, as I have completed five decades in the insurance industry. It has been a heart fulfilling journey in building this company to what it is today. When Star Health insurance was started, the concept of stand-alone health insurance was unheard of and health insurance penetration was extremely low. We felt a need to create awareness among people on the importance of health insurance, the need to stay protected and the need to protect their health and financial wellbeing. Today, I’m able to see, that we have achieved this objective to some extent, as Star Health Insurance continues to grow. I am very happy to handover the mantel to Anand to carry forward this noble task. I am sure Star Health Insurance is well poised to grow to greater heights in the coming days under the leadership of Mr. Anand Roy. Today I can proudly say that I have achieved this objective directly and indirectly.” said Mr. V Jagannathan. 

Mr. Anand Roy, newly appointed Chief Executive Officer and Managing Director of Star Health and Allied Insurance Company Limited said, “I am extremely humbled and also excited about my new role at Star Health. It is indeed a privilege and honour to lead this great organisation into its next phase of success. FY 22-23 has been a good year for us where we saw steady growth q-o-q. We focused on improving our retail market share, lowering our combined operating ratio, growing our channel partners and agent network. The year saw us launch a couple of innovative products which were well received by customers across the country. Our growth strategy also focused on strengthening our presence through branches and increasing our network hospital presence for better customer service. Our combined ratio for FY23 improved to 95.3% versus 117.9% for FY22.” 

“Retail health insurance will remain our primary focus for the years ahead. We continue to invest heavily in enhancing our customer experience through product innovation and digitalization. The brand of Star Health is well entrenched in all parts of our country. We will keep identifying new opportunities for growth and expansion and contribute to increasing the penetration of health insurance in India”, added Mr. Roy. 

In FY23, Star Health reported retail health premiums of Rs. 11,948 crore, a rise of 18% over FY22. As of the end of March 2023, Star Health has a 34% share of the retail health insurance industry in India. In FY23 compared to FY22, the Operating expenditure to GWP ratio was a respectable 15.9%. The company's solvency ratio for the year was 2.14x, which was higher than the minimal statutory threshold of 1.5x. 

In India, Star Health's network now includes 14,203 hospitals as a result of the expansion of its hospital partnerships. In FY23, the firm expanded its reach across India to 835 branch offices.

The shares of Star Health and Allied Insurance Company closed today on the NSE at ₹592.55 apiece, up by 0.83% from the previous close of ₹587.70.