Star Health Insurance, a leading health insurance company in India, has reported a significant growth in its Premium AUM (Assets Under Management) in the second quarter of fiscal year 2023-24 (Q2FY24). According to the company’s Second Quarter Results for FY24, Star Health’s PAT (Profit After Tax) has surged by 35% year-on-year (YoY) to ₹434.3 crores during the quarter, ending September 30, 2023.
The company’s total health insurance premiums grew by 20% YoY to ₹5,341.1 crores during the quarter. The growth in premiums has been driven by increased demand for health insurance products, particularly individual and group health insurance policies. Additionally, the company’s Bancassurance channel has also contributed significantly to the growth, with premiums increasing by 28% YoY during the quarter.
Star Health’s gross premium prolonged to new accounts (GWP-NA) was up 24% YoY at ₹2,532.8 crores during the quarter, with the company’s new business growth led mostly by its individual and group health insurance policies. The company’s reinsurance business also witnessed significant growth, with reinsurance premiums increasing by 34% YoY during the quarter.
The company’s growth has been driven by its strong distribution network, which has expanded to over 50,000 channels across the country. The company’s distribution agents, consisting of banks, brokers, and agents, have played a crucial role in driving growth, with the top 10 agents contributing 25% to the overall GWP-NA.
Star Health’s cost-to-income ratio (CR) improved to 67.3% as of September 30, 2023, compared to 72.1% as of September 30, 2022. The company’s solvency margin as of September 30, 2023, stood at 223.4%, indicating its robust financial health.
Overall, Star Health’s strong financial performance is a testament to its operational efficiency, diversified product portfolio, and robust distribution network. The company’s growth in health insurance premiums and increased profitability are expected to continue, driving its future prospects.