Kamal Ghorui
MUMBAI: Star Health and Allied Insurance reported a sharp jump in profitability in the December quarter, with net profit rising more than four-fold, aided by higher premium growth, improved underwriting performance and a surge in investment income.The Chennai-based standalone health insurer posted a profit after tax of Rs 449 crore in the third quarter of FY26 under Ind AS accounting, a 414% increase from Rs 87 crore a year earlier. Profit before tax rose 408% year-on-year to Rs 594 crore.Gross written premium grew 23% to Rs 5,047 crore in the quarter ended Dec 2025, while net earned premium increased 12% to Rs 4,250 crore. Net incurred claims rose at a slower pace of 7% to Rs 2,923 crore, helping the company swing to an underwriting profit of Rs 46 crore from an underwriting loss of Rs 79 crore in the same quarter last year.Investment income jumped 176% to Rs 569 crore from Rs 206 crore a year earlier, supported by an investment yield of 9.6%. Net expenses rose 11% year-on-year to Rs 1,280 crore.Operational metrics also improved during the quarter. The claims ratio declined to 68.8% from 71.8% a year ago, while the expense ratio moderated marginally to 30.1% from 30.3%. As a result, the combined ratio improved to 98.9% from 102.1% in the corresponding quarter of the previous year.The insurer said the performance was driven by strong growth in its retail business, with retail gross written premium rising 27% year-on-year, led by a 60% jump in fresh retail premiums. Digital channels accounted for 76% of overall premium collections during the quarter, while AI-enabled systems handled 57% of claims traffic.According to Star Health and Allied Insurance, the improvement reflects tighter underwriting discipline, portfolio recalibration and better cost control. Chief executive officer Anand Roy said the company remained focused on sustaining profitability while scaling growth.
