Star Health and Allied Insurance, India's largest standalone health insurer, reported a 25% year-on-year increase in Q1 FY27 profit after tax to Rs 550 crore, driven by healthy premium growth, disciplined underwriting and sustained operating efficiencies. On a normalised basis (annualised investment yield of 8%), PAT rose 44% to Rs 386 crore.
Underwriting profit jumped six-fold to Rs 111 crore from Rs 16 crore in Q1 FY26, with the combined insurance service ratio (CISR) improving 1.7 percentage points to 97.0%. Gross Written Premium grew 19% to Rs 4,287 crore, and fresh retail health GWP rose 37% to Rs 730 crore.
The insurer settled 9.6 lakh claims during the quarter, its retail claims settlement ratio improved to 91%, persistency rose 3% YoY to 102%, and net promoter score jumped 12 points to 65. Digital remained a key lever: the proprietary D2C channel contributed 16% of fresh retail sales with 142% YoY growth, and 97% of fresh policies were sourced digitally. Distribution stood at 900+ branches, 8.5 lakh+ agents and 16,000+ network hospitals.
CFO Nilesh Kambli said the company has shifted to annual premium pricing revisions — raising premiums an average 8-9% over the past four-five months — instead of large hikes every few years, and is prioritising profitable growth over market share. Star Health targets doubling GWP to around Rs 27,500-28,000 crore by FY28 with a long-term RoE of 15-16%.
Sources: PRNewswire, ETBFSI (July 30 - August 3, 2026)