Star Health & Allied Insurance Co. Ltd. · NSE:STARHEALTH
Star Health & Allied Insurance — Q3 FY2023 Earnings Presentation
19 slides from Star Health & Allied Insurance's earnings presentation, Jan 31, 2023
Slide 1: Exchange filing cover letter: Earnings Call Presentation
Date: January 31, 2023 Place: Chennai Ref: SHAI/B & S/SE/205/2022-23 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: 3QFY23 & 9MFY23 Performance Review
3QFY23 & 9MFY23 PERFORMANCE REVIEW January 2023
Slide 3: Key pillars of our Strategy
Key pillars of our Strategy 33% Retail Health 42% Retail Health 1 Leadership in Retail Health Insurance Market Accretion Market Share Share 21% CAGR in no. of 2 Well Spread Distribution Network agents since FY20 to 0.61 million 830 Branches INR 8.2bn GWP 63% premium value 3 Investment in Technology
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) 2021 2022 2021 2022 GWP 93,885.4 1,14,634.7 77,743.2 87,532.4 Period-on-period growth of GWP 36.8% 22.1% 26.9% 12.6% Retail Health Renewal Premium Ratio 97.
Slide 5: Key Performance Indicators (2/2)
Key Performance Indicators (2/2) Claims, Expense and Combined Ratio Profit After Tax (PAT) (INR billion) PAT Adjusted PAT 122.1% 125.0% 5.9 6.3 117.9% 5.8 5.2 21.3% 27.5% 33.1% 96.9% 0.5% 65.8% 66.5% 65.5% 61.3% 27.7% 30.8% 31.0% 30.8% -9.6 -9.4 FY21 FY22 9MFY22 9MFY23 -10.9 -10.4 FY21 FY22 9MFY22 9
Slide 6: Agenda
Agenda Our Strategy Performance Update 5
Slide 7: Agenda: Our Strategy
Agenda Our Strategy Performance Update 6
Slide 8: Leadership in Attractive Retail Segment
1 Leadership in Attractive Retail Segment Retail Health Market Share Gross Written Premium (INR billion) 263 307 210 242 +22% 115 +13% 94 31% 33% 32% 33% 88 78 101 FY21 FY22 9MFY22 9MFY23 82 67 80 Retail Health Industry Size in INR billion Retail Health Accretion Market Share 42% 44% 1 10 2 12 1 9 1
Slide 9: 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 21.0% 33.9% 550 610 88 462 79 361 59 40 FY20 FY21 FY22 9MFY23 FY20 FY21 FY22 9MFY23 Channel wise mix and growth, 9MF23 9MFY23 82% 9% 5% 2% 2% Channel Mix 49% 18% 27% -40% -68% Corporate
Slide 10: Extensive Footprint and Alternate Distribution Channels
2 Extensive Footprint and Alternate Distribution Channels Extensive Branch Network Partner Integration 737 807 786 830 FY21 FY22 9MFY22 9MFY23 Well distributed footprint across enables Pan-India growth Focus on SME & Banca Group Health Sales INR billion 70% SME 3.5 3.4 SME + Banca contribution Banca
Slide 11: 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 7.2 6.5 8.2 27% 56% 60% 63% 5.4 Growth FY21 FY22 9MFY22 9MFY23 FY21 FY22 9MFY23 Hyper-personalization 1.85m Digitizing Customer Customer App STAR POWER
Slide 12: 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 (%) New Product launch
Slide 13: Strong Domain Expertise Driving Superior Claims Ratio
5 Strong Domain Expertise Driving Superior Claims Ratio Net Incurred Claims Ratio(1) Increasing Sum Assured Fraud Analytics Growth of Average Sum Assured on Retail Health policies Disciplinary action against erring hospitals 94.4% 87.1% 23% 33.1% 21.3% 66.1% 0.5% 1,185 1,181 FY22 9MFY23 14% 13% 10%
Slide 14: Extensive Claims Processing and Network Negotiation
5 Extensive Claims Processing and Network Negotiation ANH(2) Share… Proportion of total cashless claims 8.6m Claims Settled Since Inception(1) 76% 64% 63% 55% FY21 FY22 9MFY22 9MFY23 90% Cashless Largest Hospital network authorization< 2 hr 13.8kNetwork Valuable service provider (VSP) introduced
Slide 15: Agenda: Performance Update
Agenda Our Strategy Performance Update 14
Slide 16: Financial Performance
6 Financial Performance Combined Ratio Opex/GWP Ratio 135.7% 122.1% 117.9% 125.0% 10.3% 33.1% 21.3% 27.5% 96.9% 94.8% 0.5% 0.2% 94.2% 61.3% 65.8% 66.5% 65.5% 63.5% 14.9 16.0 16.6 16.5 16.2 16.5 27.7% 30.8% 31.0% 30.8% 31.2% 31.0% FY21 FY22 9MFY22 9MFY23 3QFY22 3QFY23 FY21 FY22 9MFY22 9MFY23 3QFY22 3
Slide 17: Robust Investment Performance
6 Robust Investment Performance Total Investments Assets Investment Income INR billion Investment Leverage INR billion 2.4x +87% 140 2.1x 2.2x 2.5 120 1.9x +1% 2.0 100 80 1.5 60 121 7.9 114 104 1.0 6.1 6.2 40 68 4.2 0.5 20 0 0.0 FY21 FY22 9MFY22 9MFY23 FY21 FY22 9MFY22 9MFY23 Steady Returns... …with
Slide 18: Thank You
THANK YOU Health Insurance The Health Insurance Specialist
Slide 19: 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 SME Small and Medium Enterprises TAT Turn Aro
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