Attractive valuation, solid revival: Should you snap up this health insurer?

Published: 08th Oct 2024

By: Value Research

Covid woes

As the Covid pandemic hit the insurance industry, Star Health took the worst fall. With increasing hospitalisations, its claims ratio skyrocketed to 93% in FY21. Payouts outdid premiums, plunging the insurer into hefty losses. But its turnaround has been remarkable.

The rebound

Despite the pandemic blows, Star Health managed to become the market leader. By FY24, it captured the highest market share of 33% in retail health insurance. It posted a record profit of Rs 845 crore. But how did it pull this off? Swipe to know.

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The retail focus

Star Health accelerated its retail-focused strategy post-pandemic. Its extensive agent network and digital channels helped boost market share. The retail segment contributed 91% to total premium in FY24, showcasing the success of this approach.

Efficiency and loyalty

A significant drop in claims also improved the company's combined ratio to 96.7%, one of the lowest in the industry. High policyholder loyalty also played a crucial role, with over 98% of customers renewing their policies in FY24.

Time to buy?

The stock has been on a losing streak since its listing. It’s thus attractive. And the company aims to double its premium by FY28. Should it be snapped up then? Read the risks before you decide. Get the story in our latest Wealth Insight. Grab your copy from the link below: