Star Health & Allied Insurance Co. Ltd. · NSE:STARHEALTH
Star Health & Allied Insurance — 9MFY2024 Earnings Presentation
18 slides from Star Health & Allied Insurance's earnings presentation, Jan 31, 2024
Slide 1: Earnings call presentation cover letter to exchanges
Date: January 31, 2024 Place: Chennai Ref: SHAI/B & S/SE/185/2023-24 To, To, The Manager The Manager Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot C/1, Dalal Street G Block, Bandra-Kurla Complex Mu
Slide 2: 9MFY24 Investor Presentation
9MFY24 INVESTOR PRESENTATION January 2024
Slide 3: Key pillars of our Strategy
Key pillars of our Strategy 33% Retail Health 59% Retail Health 1 Leadership in Retail Health Insurance Market Market Share Share among SAHIs 33% contribution 684k agents; 877 2 Well Spread Distribution Network Branches from non-agency to fresh business INR 7.2bn GWP 65% premium value 3 Investment i
Slide 4: Key Performance Indicators (1/2)
Key Performance Indicators (1/2) Particulars Fiscal Year Ended March 31, Nine Months Ended December 31, (INR millions, unless otherwise stated) 2022 2023 2022 2023 GWP 1,14,635 1,29,525 87,532 1,02,861 Period-on-period growth of GWP 22% 13% 13% 18% Retail Health Renewal Premium Ratio 94.0% 95.0% 94.
Slide 5: Key Performance Indicators (2/2)
Key Performance Indicators (2/2) Claims, Expense and Combined Ratio Profit After Tax (PAT) (INR billion) 36% 117.9% 7.0 6.2 5.2 95.3% 96.9% 98.2% 87.1% 65.0% 66.1% 67.3% 30.8% 30.3% 30.8% 30.9% PAT FY22 FY23 9MFY23 9MFY24 -10.4 FY22 FY23 9MFY23 9MFY24 Claims Ratio Expense Ratio Note: All numbers are
Slide 6: Agenda
Agenda Our Strategy Performance Update 5
Slide 7: Leadership in Attractive Retail Segment
1 Leadership in Attractive Retail Segment Retail Health Market Share Gross Written Premium (INR billion) 307 354 242 287 +13% 130 +18% 115 103 88 33% 34% 33% 33% 119 101 94 80 2 12 2 8 1 6 1 7 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 Retail Health Industry Size in INR billion Retail Group PA
Slide 8: Largest and Well Spread Distribution Network
2 Largest and Well Spread Distribution Network Total Agency Force Sponsored Health Agency Force In 000’s In 000’s 15.3% 23.1% 626 684 104 550 79 92 462 59 FY21 FY22 FY23 9MFY24 FY21 FY22 FY23 9MFY24 Channel wise mix, 9MFY24 Extensive Branch Network Other Direct Digital Banca 4% 7% Brokers 2% 5% 807
Slide 9: Extensive Footprint and Alternate Distribution Channels
2 Extensive Footprint and Alternate Distribution Channels Partner Integration 41% Fresh Banca Growth – (9MFY24) 48 Banca + NBFC tie-ups 8
Slide 10: Continued focus on Digital Growth
3 Continued focus on Digital Growth Digital Acquisition Digital Issuance GWP acquired through online channels, INR ‘billion % of premium collection 8.9 60% 62% 65% 7.2 6.2 7.2 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY24 33% Fresh Digital 5.0m+ Growth – Customer App (9MFY24) downloads Note: Digital incl
Slide 11: Diversified and Specialized Product Suite
4 Diversified and Specialized Product Suite Specialized Products Star Cancer Care Policy Star Senior Citizens Red Carpet Health Insurance Policy Star Cardiac Care Policy Young Star Policy Star Diabetes Safe Policy ♀ Women Care Policy Retail Premium Mix for Specialized Products (%) 15.1% 15.5% 14.7%
Slide 12: Strong Domain Expertise Driving Superior Claims Ratio
5 Strong Domain Expertise Driving Superior Claims Ratio Net Incurred Claims Ratio(1) Increasing Sum Assured Growth of Average Sum Assured in Retail Health policies 87.1% 13% 66.1% 67.3% 11% 65.0% 10% 10% FY22 FY23 9MFY23 9MFY24 FY23 9MFY24 Claims Ratio New Overall (1) Net incurred claims ratio is de
Slide 13: Extensive Claims Processing and Network Negotiation
5 Extensive Claims Processing and Network Negotiation ANH(2) Share… Proportion of total cashless claims 10.2m 94% No of Claims Settled since Cashless Inception(1) 67% 69 authorization< 2 hr 64% FY22 FY23 9MFY24 448bn 63 14.2k Amount of Claims Network NPS score on claims Hospitals settled since 55 in
Slide 14: Agenda
Agenda Our Strategy Performance Update 13
Slide 15: Financial Performance
6 Financial Performance Combined Ratio Opex/GWP Ratio 117.9% 95.3% 96.9% 98.2% 87.1% 65.0% 66.1% 67.3% 16.0 15.9 16.5 16.9 30.8% 30.3% 30.8% 30.9% FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 Claims Ratio Expense Ratio Profit Before Tax (PBT) Profit After Tax (PAT) (INR billion) +36% (INR billion
Slide 16: Robust Investment Performance
6 Robust Investment Performance Total Investments Assets Investment Income INR billion Investment Leverage INR billion 2.4x 2.4x +5% 2.3x +28% 150 2.2x 2.5 2.0 100 1.5 134 144 7.9 8.3 7.9 114 121 1.0 50 6.2 0.5 0 0.0 FY22 FY23 9MFY23 9MFY24 FY22 FY23 9MFY23 9MFY24 Steady Returns... …with fixed incom
Slide 17: Thank You
THANK YOU 16
Slide 18: Glossary
Glossary Particulars FY Financial Year GWP Gross Written Premium GEP Gross Earned Premium CAGR Cumulative Annual Growth Rate Y-o-Y Year-on-Year VQST Voluntary Quota Share Treaty URR Unexpired Risk Reserve ANH Agreed Network Hospitals PA Personal Accident SAHI Stand-alone Health Insurers TAT Turn Aro
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