Standalone retail health insurer Star Health and Allied Insurance Company reported a 50.7 percent year-on-year decline in net profit to Rs 54.9 crore for the quarter ended September 30, 2025 (Q2FY26), compared to Rs 111.3 crorein the same period last year.
The insurer’s gross written premium (GWP) inched up 1.2 percent to Rs 4,423.8 crore in the quarter from Rs 4,371.3 crore a year ago.
Despite the weak quarterly performance, the company posted a 21 percent YoY rise in profit after tax (PAT) to Rs 518 crore for the first half of FY26 (H1FY26) under IFRS, aided by a healthier loss ratio and better operating efficiency.
“The first half of this year has been marked by steady progress with a 21 percent growth in PAT as per IFRS. Along with a healthy investment yield of 8.3 percent, profitability was supported by an improved loss ratio and reduction in our expense ratio,” said Anand Roy, MD & CEO, Star Health.
During the first half, the company reported a net GWP of Rs 8,809 crore, up 12 percent YoY, driven by strong retail performance. Retail GWP rose 17 percent to Rs 8,332 crore, supported by a 24 percent rise in fresh retail premiumsand 98 percent renewal persistency. Star Health maintained a 32 percent market share in the retail health insurance segment.
The insurer’s Net Incurred Claims Ratio improved 30 basis points YoY to 70.6 percent in H1FY26, reflecting the impact of portfolio recalibration. Its flagship product, Super Star, crossed the Rs 1,250 crore premium milestone within its first year of launch, prompting the company to adopt an annual repricing strategy for the product.
Operating metrics also showed improvement — the expense ratio eased to 29.7 percent in H1FY26 from 31.1 percent a year ago, driven by productivity gains and cost discipline. The combined ratio (IFRS basis) improved to 100.3 percentfrom 102.1 percent, while the solvency ratio remained strong at 2.15x, comfortably above the regulatory requirement.
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