Star Health and Allied Insurance Company Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Star Health and Allied Insurance Company Ltd filed with BSE on 05 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Star Health reported Q4 FY26 GWP growth of 17% YoY to Rs. 6,259 crore and full-year GWP growth of 16% YoY to Rs. 20,369 crore, crossing the Rs. 20,000 crore milestone. The company posted a Q4 net loss of Rs. 55 crore due to a Rs. 558 crore mark-to-market loss on equities, while full-year PAT rose 16% YoY to Rs. 911 crore, and normalized PAT (using an 8% investment yield assumption) grew 45% YoY to Rs. 1,222 crore. Management highlighted continued improvement in loss ratio and combined ratio across the year, driven by pricing actions, portfolio recalibration, and wellness/telemedicine initiatives.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
GWP: Rs. 6,259 crore (Q4 FY26)
p. 5
“Overall, GWP increased 17% YoY on N basis to Rs. 6,259 crore for the quarter.”
Anand Roy, page 5 of the filed PDF · View the filing
IND AS underwriting profit: Rs. 186 crore (Q4 FY26)
p. 5
“Our IND AS underwriting profit for the quarter was Rs. 186 crore, an increase of 200% YoY over Rs. 62 crore in Q4 FY25.”
Anand Roy, page 5 of the filed PDF · View the filing
Combined ratio: 95.7% (Q4 FY26)
p. 5
“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.”
Anand Roy, page 5 of the filed PDF · View the filing
Loss ratio: 65.2% (Q4 FY26)
p. 5
“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.”
Anand Roy, page 5 of the filed PDF · View the filing
Retail loss ratio: 64.8% (Q4 FY26)
p. 5
“The retail loss ratio improved 3% YoY to 64.8% in this particular quarter for FY26.”
Anand Roy, page 5 of the filed PDF · View the filing
Mark-to-market loss: Rs. 558 crore (Q4 FY26)
p. 5
“The geopolitical tension-induced correction in the equity markets led to a Rs. 558 crore marked-to-market loss during the quarter.”
Anand Roy, page 5 of the filed PDF · View the filing
GWP: Rs. 20,369 crore (FY26)
p. 5
“Overall, GWP increased 16% YoY on N basis to Rs. 20,369 crore.”
Anand Roy, page 5 of the filed PDF · View the filing
Underwriting profit: Rs. 206 crore (FY26)
p. 5
“underwriting profit turned positive at Rs. 206 crore for FY26, a positive delta of Rs. 371 crore.”
Anand Roy, page 5 of the filed PDF · View the filing
Combined ratio: 98.8% (FY26)
p. 5
“This was driven by improvement in combined ratio by 2.3% from 101.1% in FY25 to 98.8% in FY26.”
Anand Roy, page 5 of the filed PDF · View the filing
Loss ratio: 68.7% (FY26)
p. 6
“The loss ratio was improved by 2% to 68.7%.”
Anand Roy, page 6 of the filed PDF · View the filing
Retail loss ratio: 68.2% (FY26)
p. 6
“Further, the retail loss ratio improved by 1% to 68.2%.”
Anand Roy, page 6 of the filed PDF · View the filing
Expense ratio: 30.1% (FY26)
p. 6
“Our IND AS expense ratio also improved by 30 basis points to 30.1% for the full year.”
Anand Roy, page 6 of the filed PDF · View the filing
PAT: Rs. 911 crore (FY26)
p. 6
“Full year PAT increased 16% YoY from Rs. 787 crore in last financial year to Rs. 911 crore in FY26.”
Anand Roy, page 6 of the filed PDF · View the filing
Normalized PAT: Rs. 1,222 crore (FY26)
p. 6
“Under this normalized framework, our profit after tax increased 45% YoY in FY26 to Rs. 1,222 crore and ROE expanded from 10.1% in FY25 to 13.1% in FY26.”
Anand Roy, page 6 of the filed PDF · View the filing
Retail Health market share: 31.3% (FY26)
p. 6
“we have maintained a category leadership in Retail Health segment with market share at 31.3% in FY26.”
Anand Roy, page 6 of the filed PDF · View the filing
Retail claim settlement ratio: 92% (FY26)
p. 7
“The retail claim settlement ratio increased by 3% to 92% for the full year.”
Anand Roy, page 7 of the filed PDF · View the filing
Renewal ratio: 99% (FY26)
p. 7
“Our renewal ratio on full-year basis increased by 2% to 99%.”
Anand Roy, page 7 of the filed PDF · View the filing
Company-level NPS: 62 (as at March 31, 2026)
p. 7
“The company-level NPS improved by 8 points to 62 at March 31, 2026.”
Anand Roy, page 7 of the filed PDF · View the filing
SME contribution to Group Health: 78% (FY26)
p. 18
“We have been focusing on our SME segment which for the current financial year has contributed to 78% of our overall business, which was 58% in FY25.”
Himanshu Walia, page 18 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Agent count — 1 million agents · next two years
stated firmly by Himanshu Walia
p. 13
“we are confident of getting to 1 million in the next two years.”
Himanshu Walia, page 13 of the filed PDF · View the filing
Retail growth and ROE — high-teen growth and mid-teen to high-teen ROEs
stated as an aspiration by Anand Roy
p. 9
“we are more focused on what is our Company's strategy and objectives, which is to have a sustainable high-teen growth, and a sustainable, hopefully mid-teen to high-teen ROEs.”
Anand Roy, page 9 of the filed PDF · View the filing
Book repricing — 80% of the book repriced · Q4 to Q1 this year
stated firmly by Amitabh Jain
p. 13
“We are expecting to reprice almost 80% of the book between what we started from Q4 going up to Q1 this year.”
Amitabh Jain, page 13 of the filed PDF · View the filing
Price increases — annual
stated firmly by Anand Roy
p. 11
“our strategy has been that we will take an annual price increase in all our products. We will continue to follow that strategy.”
Anand Roy, page 11 of the filed PDF · View the filing
Combined ratio strategy — target combined ratio · FY27
stated firmly by Anand Roy
p. 16
“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.”
Anand Roy, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management pointed to continuous improvement efforts and prevention/wellness programs like telemedicine and home healthcare, without committing to a specific loss ratio level.
Answered by Amitabh Jain
Asked by Supratim Dutta: What is the pathway for retail loss ratio to improve from ~68% back toward 65-66%?
p. 8
“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.”
Amitabh Jain, page 8 of the filed PDF · View the filing
Management said they prioritize quality of growth and new-to-insurance mix over matching industry growth rates.
Answered by Anand Roy
Asked by Prayesh Jain: Why is Star Health's growth lower than industry despite favorable tailwinds?
p. 9
“we are not so much focused on the portability side of business.”
Anand Roy, page 9 of the filed PDF · View the filing
Management cited multiple cost control measures and improved sales manager productivity in addition to the senior citizen commission change.
Answered by Nilesh Kambli
Asked by Prayesh Jain: What is driving commission ratio improvement besides senior citizen adjustments?
p. 10
“the other initiative that we have taken is ensuring that the productivity of our sales managers has improved a lot.”
Nilesh Kambli, page 10 of the filed PDF · View the filing
Management explained the GST cut announcement caused customers to delay renewals into Q3 and Q4, creating a temporary distortion.
Answered by Nilesh Kambli
Asked by Swarnabha Mukherjee: What is driving the uptick in retention ratio this quarter?
p. 12
“there was a slight anomaly in Q3 and Q4 because of the GST cut which happened in Q2, September was the announcement and people waited in September and did the renewal within the grace period in Q3.”
Nilesh Kambli, page 12 of the filed PDF · View the filing
Management said frequency and severity have been managed in high single digits and they expect to reprice about 80% of the book by Q1.
Answered by Amitabh Jain
Asked by Dipanjan Ghosh: How is the back book trending on loss ratios, and what is the repricing strategy?
p. 12
“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.”
Amitabh Jain, page 12 of the filed PDF · View the filing
Management said they await IRDAI guidance and declined to speculate on the outcome.
Answered by Anand Roy
Asked by Dipanjan Ghosh: Is there regulatory consideration of EoM arbitrage between SAHIs and multi-liners?
p. 13
“we await IRDAI's guidance on EoM. There has been some data that the regulator has asked which all of us have supplied.”
Anand Roy, page 13 of the filed PDF · View the filing
Management attributed the improvement to a combination of factors including renewal book pricing, sourcing quality, geography selection and fraud/waste management, plus lower frequency in Q4.
Answered by Amitabh Jain
Asked by Sanketh Godha: What is the breakdown of the loss ratio improvement between new, renewal, severity, and hospital management?
p. 14
“the improvement has been across the renewal book and the fresh book. So, it's not simply about one aspect of the business.”
Amitabh Jain, page 14 of the filed PDF · View the filing
Management said they do not foresee any unusual repricing need beyond normal increases and believe current strategy is sufficient for the target combined ratio.
Answered by Anand Roy
Asked by Avinash Singh: Is the current pricing strategy sustainable to achieve the target combined ratio without major repricing needs in FY27?
p. 16
“We do not foresee any particular change in the strategy or any increase that is beyond normal, we do not see that.”
Anand Roy, page 16 of the filed PDF · View the filing
Management said pricing decisions are based on product loss ratio performance, unrelated to GST, and GST benefits have been fully passed on.
Answered by Anand Roy
Asked by Rishi Jhunjhunwala: How will price hikes be managed given sensitivity around GST cut pass-through to consumers?
p. 17
“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.”
Anand Roy, page 17 of the filed PDF · View the filing
Management said they will continue focusing on profitable segments like SME within Group Health.
Answered by Himanshu Walia
Asked by Nidesh Jain: What is the strategy for Group Health going forward given the recalibration?
p. 18
“we are absolutely clear that we will go behind businesses which are profitable in nature and SME is one of those businesses and we have taken growth rate targets in line with the overall objective of the organization.”
Himanshu Walia, page 18 of the filed PDF · View the filing
Management said they are focused on profitable geographies and customer cohorts rather than chasing market share.
Answered by Himanshu Walia
Asked by Nidesh Jain: Why is Star Health's retail growth lagging industry growth?
p. 19
“we are not desperate to grow our market share at the cost of profits.”
Himanshu Walia, page 19 of the filed PDF · View the filing
Management said the platform migration is nearly complete and is delivering efficiency and effectiveness gains.
Answered by Amitabh Jain
Asked by Supratim Dutta: How is the transition to the Medi Assist claims platform progressing?
p. 19
“We are just entering the final phase of our last set of products that will be shifted on to that platform.”
Amitabh Jain, page 19 of the filed PDF · View the filing
Risks flagged
Cyclical fluctuations in claims frequency or severity affecting quarterly loss ratios
p. 8
“This business, as we all know, has cycles and there could be cycles of frequency or severity going up in particular quarters.”
Amitabh Jain, page 8 of the filed PDF · View the filing
Marked-to-market volatility from equity market corrections impacting reported profitability
p. 5
“The geopolitical tension-induced correction in the equity markets led to a Rs. 558 crore marked-to-market loss during the quarter.”
Anand Roy, page 5 of the filed PDF · View the filing
Additional cost impact from regulatory changes such as GST and Labor Code
p. 6
“notwithstanding an absolute impact of around Rs. 80 crore due to factors such as GST and Labor Code.”
Anand Roy, page 6 of the filed PDF · View the filing
Claims severity rising due to higher quality of treatments and changing disease profiles
p. 14
“claims severity is a function of higher quality of treatments and the kind of disease profiles we are seeing nowadays.”
Anand Roy, page 14 of the filed PDF · View the filing
Uncertainty around upcoming EoM/commission regulation and industry non-compliance
p. 17
“this is a very difficult question for me to answer. I think I will give it a pass.”
Anand Roy, page 17 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.