India's two largest listed standalone health insurers both delivered strong Q1 FY27 results, and the story in both cases is underwriting discipline as much as premium growth. Star Health and Niva Bupa are proving that in a health market growing at double-digit rates, profitability comes from pricing and claims management — not just volume.
Star Health: Underwriting Profit Jumps Six-Fold
Star Health posted a 25% year-on-year rise in Q1 PAT to Rs 550 crore; on a normalised basis (8% annualised investment yield) PAT grew 44% to Rs 386 crore. The real highlight was underwriting profit — Rs 111 crore versus just Rs 16 crore a year earlier. The combined insurance service ratio (CISR) improved 1.7 percentage points to 97.0%, and gross written premium rose 19% to Rs 4,287 crore, with fresh retail GWP up 37%.
Customer metrics were strong too: 9.6 lakh claims settled, a retail claims settlement ratio of 91%, persistency up to 102%, and an NPS that jumped 12 points to 65. Digital now drives a fifth of fresh retail sales through its D2C channel.
Equally notable is Star's pricing philosophy. CFO Nilesh Kambli said the company has moved to annual premium revisions of 8-9% instead of large hikes every three or four years, keeping increases small and predictable while tracking medical inflation. Star is also willing to exit geographies or portability segments where returns do not meet its thresholds — profitable growth over market share.
Niva Bupa: PAT Nearly Doubles
Niva Bupa's Q1 FY27 PAT surged 93% to Rs 138 crore. GWP grew 32% to Rs 2,150 crore, with retail health up 47% — pushing its retail health market share to 11.1%. The claim settlement ratio improved to 95.6% and CISR to 100.2% (from 103.2%), showing the gap to profitability closing fast.
Solvency fell to 2.25x from 2.86x a year ago as the company deploys capital for growth, but remains comfortably above the regulatory minimum. AUM crossed Rs 9,960 crore.
The Bigger Trend
These results sit inside a broader pattern: standalone health insurers grew premiums 30.9% in June and 32.9% in Q1 FY27, far outpacing diversified general insurers. Retail health — boosted by the GST exemption that removed the 18% levy on individual health policies — is the industry's engine, growing 33% in June. As insurers price more accurately and settle claims on merit, health insurance is simultaneously becoming cheaper in headline terms and more sustainable for the industry.
What Consumers Should Watch
For buyers, the shift to annual pricing revisions matters: expect smaller but more frequent premium adjustments across health products. Strong claim settlement ratios and persistency numbers are now published quarter after quarter — use them when comparing health insurers, alongside network hospital size, waiting periods and the wellness/OPD features that are becoming standard.
Sources: PRNewswire, ETBFSI, ET Healthworld, PTI (July 30 - August 3, 2026)