Star Health and Allied Insurance Company Limited (Star Health Insurance), India’s leading health insurance provider, has achieved a significant milestone with an upgrade in its credit rating by India Ratings and Research (Ind-Ra). The company’s Long-Term Issuer Rating has been elevated to ‘IND AA+’ from ‘IND AA’, with a stable outlook. Additionally, the rating for Star Health’s subordinated debt has been upgraded to ‘IND AA’ from ‘IND AA-‘. This upgrade reflects Star Health’s consistent profitability, strong leadership position, and extensive distribution network.
The credit rating upgrade underscores Star Health’s remarkable performance and dominant market position in the Indian insurance sector. The company has consistently demonstrated steady underwriting profits, maintained its market leadership, and expanded its distribution network. Star Health commands a 33% market share in the retail health segment and a 5.3% share in the overall general insurance market, reinforcing its status as a formidable player in the industry.
Financially, Star Health has shown impressive growth, with gross written premiums growing at a compound annual growth rate (CAGR) of 23.1% from FY19 to FY24, reaching INR 152.5 billion. The company’s profitability has also improved significantly, with the combined ratio stabilizing at 96.67% in FY24 and return on equity climbing to 14.4%.
Aneesh Srivastava, Chief Investment Officer of Star Health Insurance, commented on the rating upgrade: “This upgrade in our credit rating from India Ratings reaffirms our commitment to excellence and our market leadership position. It reflects the trust our customers place in us and the hard work of our dedicated team. We have built Star Health Insurance to perform well with a solid company structure, and we continue to show great progress toward our FY25 objectives. We remain focused on delivering a robust and predictable financial performance, all while providing an incredible experience to our valued customers.”
The rating upgrade takes into account Star Health’s focus on retail health insurance, its widespread distribution network, and the expertise of its management team. With a solvency margin of 2.21x for FY24, well above regulatory requirements, the company is well-positioned for sustainable growth and continued market leadership.
As Star Health moves forward with this enhanced credit rating, it remains committed to its mission of making quality healthcare accessible to all through innovative insurance solutions. The company continues to set industry benchmarks in service and performance, aiming to enhance its offerings and reach even more customers.
