Star Health & Allied Insurance Co. Ltd. · NSE:STARHEALTH
Star Health & Allied Insurance — Q1 FY2025 Earnings Presentation
18 slides from Star Health & Allied Insurance's earnings presentation, Jul 30, 2024
Slide 1: Earnings Call Presentation cover letter to exchanges
Date: July 30, 2024 Place: Chennai Ref: SHAI/B & S/SE/78/2024-25 To, To, The Manager, The Manager, Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Tower, Exchange Plaza, 5th Floor, Plot C/1, Dalal Street, G Block, Bandra-Kurla Complex
Slide 2: Investor Presentation Q1FY25
Investor Presentation Q1FY25 July 2024
Slide 3: Key Pillars of our Strategy
Key Pillars of our Strategy 31% 55% 1 Leadership in Retail Health Retail Health Insurance Market Share Retail Health Market Share among SAHIs 718k Agents; 41% 2 Well Spread Distribution Network 887 Branches Fresh Business from Non-agency 72% INR 2.5bn 3 Investment in Technology Digital Issuance GWP
Slide 4: Key Performance Indicators (1/2)
Key Performance Indicators (1/2) Particulars Fiscal Year Ended March 31, Three Months Ended June 30, (INR millions, unless otherwise stated) 2023 2024 2023 2024 GWP 1,29,525 1,52,545 29,486 34,759 Period-on-period growth of GWP 13% 18% 20% 18% Retail Health Renewal Premium Ratio 95.0% 98.4% 97.3% 92
Slide 5: Key Performance Indicators (2/2)
Key Performance Indicators (2/2) Claims*, Expense and Combined Ratio Profit After Tax (PAT) (INR billion) 37% 96.7% 97.8% 99.2% 95.3% 8.5 6.2 65.0% 66.5% 65.4% 67.6% 11% 2.9 3.2 30.3% 30.2% 32.4% 31.6% FY23 FY24 Q1FY24 Q1FY25 FY23 FY24 Q1FY24 Q1FY25 Claims Ratio Expense Ratio PAT Note: All numbers a
Slide 6: Agenda
Agenda Our Strategy Performance Update
Slide 7: Leadership in Attractive Retail Segment
Leadership in Attractive Retail Segment Retail Health Market Share Gross Written Premium (INR billion) +18% 307 354 84 100 153 130 34% 33% 32% 142 31% 121 +18% 29 35 27 31 8 11 2 3 FY23 FY24 Q1FY24 Q1FY25 FY23 FY24 Q1FY24 Q1FY25 Retail Health Industry Size in INR billion Retail Health, Travel & PA G
Slide 8: Largest & Well Spread Distribution Network
Largest & Well Spread Distribution Network Total Agency Force Sponsored Health Agency Force In 000’s 12.6% In 000’s 17.0% 626 701 718 111 113 550 79 92 FY22 FY23 FY24 Q1FY25 FY22 FY23 FY24 Q1FY25 Channel wise mix, Q1FY25 Extensive Branch Network Corporate Digital 5% 7% Banca 8% 807 835 881 887 FY22
Slide 9: Extensive Footprint in Alternate Distribution Channels
Extensive Footprint in Alternate Distribution Channels Partner Integration 25% Fresh Banca Growth 61 Banca + NBFC tie-ups
Slide 10: Continued Focus on Digital Growth
Continued Focus on Digital Growth 25% 72% 80% Fresh Digital Digital premium UPI Collection Growth * collection Growth 6.6m+ 843k Play store rating 4.4 Customer App Monthly Active App store rating downloads User 4.6 * Note: Digital includes web-sales, tele-sales, web aggregators and online brokers
Slide 11: Diversified & Specialized Product Suite
Diversified & Specialized Product Suite 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 15.5% 15.8% 15.1% 14.2% FY23 FY24 Q1FY24 Q1FY25
Slide 12: Strong Domain Expertise Driving Superior Claims Ratio
Strong Domain Expertise Driving Superior Claims Ratio Net Incurred Claims Ratio(1) Increasing Sum Assured Growth of Average Sum Assured in Retail Health policies 66.5% 65.4% 67.6% 65.0% 11% 10% 8% 8% FY23 FY24 Q1FY24 Q1FY25 FY24 Q1FY25 Claims Ratio New Overall (1) Net incurred claims ratio is define
Slide 13: Extensive Claims Processing and Network Negotiation
Extensive Claims Processing and Network Negotiation ANH(2) Share… 11.1m No of Claims Proportion of total cashless claims 92% Settled since Cashless Inception(1) processing < 2 hr 74% 74% 67% 61% 491bn 14k+ Amount of Claims settled since Network Inception(1) FY23 FY24 Q1FY24 Q1FY25 Hospitals Note: (1
Slide 14: Agenda
Agenda Our Strategy Performance Update
Slide 15: Financial Performance
Financial Performance Combined Ratio Opex/GWP Ratio 95.3% 96.7% 97.8% 99.2% 65.0% 66.5% 65.4% 67.6% 18.3 16.5 15.9 15.7 30.3% 30.2% 32.4% 31.6% FY23 FY24 Q1FY24 Q1FY25 FY23 FY24 Q1FY24 Q1FY25 Claims Ratio Expense Ratio Profit Before Tax (PBT) Profit After Tax (PAT) (INR billion) (INR billion) +37% +
Slide 16: Robust Investment Performance
Robust Investment Performance Total Investments Assets Investment Income INR billion Investment Leverage INR billion 2.4x 2.4x +30% 200 2.2x 2.3x 2.5 2.0 150 1.5 100 10.8 155 158 1.0 8.3 +18% 134 133 50 0.5 2.5 3.0 0 0.0 FY23 FY24 Q1FY24 Q1FY25 FY23 FY24 Q1FY24 Q1FY25 Steady Returns... …with fixed i
Slide 17: Thank You
THANK YOU
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 SME Small and Medium Enterprises TAT Turn Aro
Star Health and Allied Insurance Company — Q1 FY2025 Earnings Presentation on 6ix