KR Choksey IPO report on Star Health and Allied Insurance Company
Star Health and Allied Insurance Company Ltd, established in 2006, is one of India's largest private health insurers, with a 15.8% market share in FY21. The company's primary focus is on the retail health and group health segments, which accounted for 89.3% and 10.7% of GWP, respectively, in FY21. With a Gross Written Premium (GWP) of INR 9,349 Cr in FY21, the company has emerged as the largest SAHI (Stand-Alone Health Insurer) company in India's overall health insurance market, continuously ranking #1 in the private health insurance market and retail health insurance market. Individual agents are the primary means by which the company distributes policies. Its portfolio, however, includes corporate agent, banks and other corporate agents. As of September 30, 2021, it had 779 health insurance branches spread over 25 states and five union territories in India. With over 11,778 hospitals, Star Health has built one of India's largest health insurance hospital networks.
Valuation and Outlook
Given the growth prospects for the retail health insurance sector and the company's position as the market leader in the SAHI sector, the company's current valuation looks reasonable. As a result, we recommend that the Star Health and Allied Insurance Company Ltd IPO be rated 'SUBSCRIBE.'
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