Star Health and Allied Insurance Company Limited announced its financial results for the third quarter and nine months ending December 31, 2024, following a board meeting earlier today. The results demonstrate key operational highlights amidst regulatory changes and ongoing market dynamics.
- Revenue and Profit:
- The company reported a net profit of ₹34.77 crore for Q3, showing consistent recovery from prior periods.
- Gross premiums written during the nine months amounted to ₹9,49,275 lakh, reflecting sustained growth despite challenges in the insurance industry.
- Earnings Per Share (EPS):
- The basic EPS for the quarter stood at ₹3.66, a significant improvement compared to previous quarters.
- Solvency Ratio:
- The solvency ratio remains strong at 2.22, adhering to regulatory requirements and indicating financial stability.
- Regulatory Adjustments:
- The adoption of a revised policy for recognizing Gross Written Premiums, as mandated by the Insurance Regulatory and Development Authority of India (IRDAI), led to a reduction of ₹30,332.31 lakh in gross premium figures. However, this did not materially affect profitability.
- Operational Expenses and Efficiency:
- The underwriting balance ratio stood at 7.97%, underscoring improvements in operational efficiency.
- Expenses of management were maintained at 30.78% of net written premiums.
- Cybersecurity Enhancements:
- Following a cybersecurity incident in August 2024, the company has taken substantial steps to enhance its cyber defenses, ensuring better data protection.
The company resolved several significant legal challenges:
- A favorable judgment from the Madras High Court quashed a GST demand of ₹9,539.82 lakh, removing a significant financial burden.
- Additional favorable outcomes on disputed GST input credits and reinsurance commissions bolstered compliance confidence.
The health insurance sector continues to witness seasonal impacts, particularly with higher claims during monsoon-related diseases. The company anticipates increased premium income in the upcoming quarter, driven by tax benefits for policyholders.
Anand Roy, Managing Director & CEO of Star Health, commented, “Despite regulatory adjustments and external challenges, Star Health has demonstrated resilience and adaptability. Our focus remains on enhancing customer-centric offerings while maintaining strong financial discipline.”
