Fresh Retail Growth (N basis)
38%
+38% YoY
Fresh retail premium grew 38% YoY in Q4, driven by both value and volume.
STARHEALTHANDALLIEDINSUR
Financial Services
15 May 2026
Star Health and Allied Insurance Co Ltd — Q4 FY26
Star Health delivered a strong operational turnaround in Q4 FY26, with fresh retail growth surging 38% YoY on an N basis and overall GWP reaching ₹6,259 crore (+17% YoY).
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Star Health delivered a strong operational turnaround in Q4 FY26, with fresh retail growth surging 38% YoY on an N basis and overall GWP reaching ₹6,259 crore (+17% YoY). Underwriting profit jumped 200% YoY to ₹186 crore, driven by a 270bps improvement in combined ratio to 95.7% and a 400bps reduction in loss ratio to 65.2%. The retail loss ratio improved for the third consecutive quarter, aided by disciplined pricing, portfolio recalibration, and enhanced fraud management. However, a ₹558 crore mark-to-market loss from equity market volatility dragged reported PAT to a loss of ₹42 crore. Management guided for sustained loss ratio improvement through continued price hikes and wellness initiatives, targeting a normalized ROE of 13.1%. Key risk: a resurgence in seasonal claims or higher medical inflation could pressure loss ratios.
Key Numbers
Combined Ratio
95.7%
-270bps YoY
Combined ratio improved to 95.7% from 98.4% in Q4 FY25, reflecting better underwriting.
Retail Loss Ratio
64.8%
-300bps YoY
Retail loss ratio improved 3% YoY to 64.8% in Q4, marking the third consecutive quarterly improvement.
New-to-Insurance Mix
94%
+4pp YoY
New-to-insurance customers accounted for 94% of fresh premium in Q4, up from 90% last year.
Management Guidance
Target 1 million agents in 2 years
Management aims to grow agent count to 1 million within the next two years, adding ~1 lakh agents annually.
Management guidance growthContinue annual price hikes across products
Star Health will maintain its strategy of annual price increases on all products, with no abnormal hikes expected.
Management guidance revenueSustained loss ratio improvement expected
Management expects loss ratios to continue improving due to pricing actions, wellness initiatives, and portfolio mix.
Management guidance marginsKey Risks
Seasonal claims volatility
A recurrence of vector-borne diseases or higher seasonal claims could pressure loss ratios, as seen in prior years.
medium · analyst_questionMedical inflation and claim severity
Rising healthcare costs and claim severity may require higher-than-expected price hikes to maintain margins.
medium · analyst_questionRegulatory EoM compliance for peers
Non-compliance by other insurers with expense of management limits could create competitive distortions, though Star Health is compliant.
low · analyst_questionNotable Quotes
The green shoots of our operating turnaround in the previous quarters is now more pronounced in our underlying metrics.
We are not desperate to grow our market share at the cost of profits.
It's a combination of everything... the improvement has been across the renewal book and the fresh book.
Frequently Asked Questions
What was Star Health and's revenue in Q4 FY26?
Star Health and reported revenue of ₹6,259 Cr in Q4 FY26, representing a +17% change compared to the same quarter last year.
What guidance did Star Health and management give for FY27?
Target 1 million agents in 2 years: Management aims to grow agent count to 1 million within the next two years, adding ~1 lakh agents annually. Continue annual price hikes across products: Star Health will maintain its strategy of annual price increases on all products, with no abnormal hikes expected. Sustained loss ratio improvement expected: Management expects loss ratios to continue improving due to pricing actions, wellness initiatives, and portfolio mix.
What are the key risks for Star Health and in FY27?
Key risks include Seasonal claims volatility — A recurrence of vector-borne diseases or higher seasonal claims could pressure loss ratios, as seen in prior years.; Medical inflation and claim severity — Rising healthcare costs and claim severity may require higher-than-expected price hikes to maintain margins.; Regulatory EoM compliance for peers — Non-compliance by other insurers with expense of management limits could create competitive distortions, though Star Health is compliant..
Did Star Health and meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Star Health and Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.