Star Health shares were trading 5.93% lower at ₹504.45 on the NSE as of 9:58 am following the release of its Q2 FY25 financial results, which revealed substantial underwriting losses that exceeded market expectations.
Key Factors Contributing to the Decline
- Underwriting Loss: Increased 1.5 times YoY to ₹195 crore, up from ₹78 crore in the same quarter last year, significantly surpassing brokerage estimates.
- Combined Ratio (CoR): Rose by 379 basis points to 102.99%, up from 99.2% YoY, indicating higher operational losses and cost pressures.
The elevated underwriting loss and combined ratio reflect a strain on Star Health’s profitability, raising concerns among investors about the company’s operational efficiency. This has led to a sharp decline in the stock price as the market reacts to these weaker-than-expected financial metrics.
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