Star Health slips 7% after reporting 11% fall in PAT in Q2 to Rs 111-cr

Star Health's total expenses also increased 18.7 per cent to Rs 3,898.58 crore in the quarter under review as compared to Rs 3,283.99 crore

Star Health and Allied Insurance Company shares slipped 6.5 per cent and registered an intraday low of Rs 500.5 per share on BSE. The selling pressure in the stock can be attributed to the company's weak bottom line performance in Q2FY25. 

 

Around 11:52 AM, Star Health Allied Insurance shares were down 2.95 per cent at Rs 519.95 per share. In comparison, the BSE Sensex was down 0.15 per cent at 80,249.43. The market capitalisation of the company stood at Rs 30,550.58 crore. 

 

Star Health and Allied Insurance Company, registered a 11.18 per cent decline in consolidated net profit to Rs 111.29 crore as compared to Rs 125.3 crore a year ago.

 

 

The company's total expenses also increased 18.7 per cent to Rs 3,898.58 crore in the quarter under review as compared to Rs 3,283.99 crore. 

 

However, the general insurance company's net premium earned increased 15.5 per cent in the second quarter to Rs 3,703.87 crore as compared to Rs 3,205.58 crore a year ago. 

 

"Our investment assets grew by 17.2 per cent and reached Rs 16,431 crore as on September 30, 2024, with an investment income of Rs 354 crore. The combined ratio in Q2FY25 stood at 103 per cent and 101 per cent in H1 FY25," said Anand Roy, MD and CEO, Star Health and Allied Insurance.

 

As per the filing, he Bancassurance business of Star Health which includes banks, Non-Banking Financial Companies (NBFCs) and alternate channels, witnessed Gross Written Premium growth of 25 per cent.

 

For H1FY25, the operating expense to GWP ratio stood at 15.6 per cent, reflecting effective cost control compared to 17 per cent in H1FY24 with an expense ratio at 30.8 per cent. The solvency ratio also remained strong at 2.24x, exceeding the regulatory minimum requirement of 1.5x.

 

"Star Health’s hospital network has grown to over 14,000 hospitals across India, with branch offices reaching 902 as of September 30, 2024," the filing read. 

 

Star Health and Allied Insurance Company Limited is a health insurance provider in India. Established in 2006, the company focuses on offering a wide range of health insurance products, including individual and family floater plans, critical illness coverage, and insurance for senior citizens.

 

In the past one year, Star Health shares have lost 8.8 per cent against Sensex's rise of 25 per cent.