Star Health Q2 profit tanks 51% to ₹55 crore on higher claims; gross premium written up 1%

Standalone health insurer Star Health and Allied Insurance Company Ltd on Tuesday (October 28) reported a net profit of ₹54.9 crore for Q2FY26, down 50.7% from ₹111.3 crore in the same quarter last year. Gross Premium Written (GWP) for the quarter rose marginally by 1.2% to ₹4,423 crore from ₹4,371 crore a year ago.

For the half year ended September 30, 2025 (H1FY26), the company posted a Profit After Tax (PAT) of ₹518 crore, marking a 21% year-on-year growth under IFRS. The growth was supported by a healthier loss ratio and improved operating efficiency.

During Q2FY26, Star Health sustained its momentum, closing H1FY26 with a Gross Written Premium (GWP) of ₹8,809 crore on a Net basis, reflecting a 12% YoY increase. Retail GWP rose 17% to ₹8,332 crore, driven by a 24% increase in fresh retail premiums and a 98% renewal persistency in retail health. With a 32% market share, the company continues to lead India’s retail health insurance segment.

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Anand Roy, MD & CEO, said, “The first half of this year has been marked by steady progress with a 21% growth in PAT as per IFRS. Along with a healthy investment yield of 8.3%, profitability was contributed by an improved loss ratio and reduction in our expense ratio."

The company’s portfolio recalibration has delivered results, with the Net Incurred Claims Ratio at 70.6% in H1FY26, a 30 bps improvement from the same period last year. The flagship product Super Star surpassed the ₹1,250 crore premium milestone within its first year, reflecting strong customer adoption. The company will now adopt an annual repricing strategy for the product.

The expense ratio improved to 29.7% in H1FY26 from 31.1% a year ago, supported by manpower productivity, process efficiencies, and disciplined cost management. The combined ratio (IFRS basis) improved to 100.3% from 102.1%, while the solvency ratio remained robust at 2.15x, well above regulatory requirements.

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In Q2FY26 specifically, the expense ratio improved to 29.3% from 31.1%, the loss ratio fell to 71.8% from 73.7%, and the combined ratio improved to 101% from 104.8% in Q2FY25. The company’s digital presence strengthened, with the Star Health app crossing 12 million downloads.

Shares of Star Health and Allied Insurance Company Ltd ended at ₹495.35, up by ₹8.85, or 1.82%, on the BSE.