Star Health & Allied Insurance Co. Ltd. · NSE:STARHEALTH
Star Health & Allied Insurance — 9M FY2022 Earnings Presentation
27 slides from Star Health & Allied Insurance's earnings presentation, Feb 11, 2022
Slide 1: Cover letter to stock exchanges
Date: February 11, 2022 Place: Chennai 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 Mumbai – 400001 Mumbai – 400051.
Slide 2: 9M FY2022 Performance Review
9M FY2022 PERFORMANCE REVIEW February 2022
Slide 3: Agenda
Agenda 1 Our Strategy 2 Performance Update 3 Industry Overview 4 ESG: Strategy and Implementation Areas 2
Slide 4: Agenda
Agenda 1 Our Strategy 2 Performance Update 3 Industry Overview 4 ESG: Strategy and Implementation Areas 3
Slide 5: Key pillars of our Strategy
Key pillars of our Strategy 32%+ Retail Health INR ~78 billion 1 Leadership in Retail Health Insurance Market GWP with 27% Share growth Y-o-Y 25% CAGR in no. of 2 Well Spread Distribution Network agents since FY19 to 0.53 million 786 Branches INR 3.3bn GWP 61% premium value 3 Investment in Technolog
Slide 6: Agenda
Agenda 1 Our Strategy 2 Performance Update 3 Industry Overview 4 ESG: Strategy and Implementation Areas 5
Slide 7: 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) 2020 2021 2020 2021 GWP 68,651.4 93,885.4 61,267.2 77,743.2 Period-on-period growth of GWP 27.1% 36.8% 40.4% 26.9% Retail Health Renewal Premium Ratio 94.5%
Slide 8: Key Performance Indicators (2/2)
Key Performance Indicators (2/2) Claim, Expense and Combined Ratio Profit After Tax (PAT) (INR billion) PAT Adjusted PAT 122.1% 125.0% 106.4% 27.5% 33.1% 5.9 93.4% 5.2 2.6 -1.3 75.2% 65.9% 66.5% 61.3% -9.6 -10.9 27.5% 27.7% 31.2% 31.0% FY20 FY21 9M FY21 9M FY22 FY20 FY21 9M FY21 9M FY22 Adjustment i
Slide 9: Leadership in Attractive Retail Segment
1 Leadership in Attractive Retail Segment Retail Health Market Share Gross Written Premium (INR billion) 183 204 263 180 210 CAGR 94 27% 32% 78 29% 31% 30% 32% 26% 69 61 54 82 FY19 FY20 FY21 9M FY21 9M FY22 67 58 54 Retail Health Industry Size in INR billion 47 Retail Health Accretion Market Share ,
Slide 10: 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 25.5% 44.3% 464 534 77 361 59 286 40 28 FY19 FY20 FY21 9M FY22 FY19 FY20 FY21 9M FY22 Channel wise Growth, 9M FY22 9M FY22 78% 9% 9% 4% Channel Mix 79% 54% 25% 19% Corporate Individual D
Slide 11: Extensive Footprint and Alternate Distribution Channels
2 Extensive Footprint and Alternate Distribution Channels Extensive Branch Network Partner Integration 737 786 575 460 FY19 FY20 FY21 9M FY22 Well distributed footprint across enables Pan-India growth New Partnerships Focus on SME Group Sales INR billion 57% 46% 4.5 SME 2.9 contribution 9M FY21 9M F
Slide 12: Impressive Digital Growth
3 Impressive Digital Growth Online Acquisition Digital Issuance GWP acquired through online channels, INR ‘billion % of premium collection 3.8 3.3 29% 56% 58% 61% 2.6 Growth 36% 2.1 FY19 FY21 9M FY21 9M FY22 FY19 FY21 9M FY21 9M FY22 Hyper-personalization 1.2mn Digitizing Customer Customer App STAR
Slide 13: Diversified and Specialized Product Suite
4 Diversified and Specialized Product Suite Key Products Star Cancer Care Policy Star Senior Citizens Red Carpet Health Insurance Policy Star Cardiac Care Policy Young Star Policy Star Diabetes Safe Policy Star Super Surplus Retail Premium Mix for Specialized Products (%) Innovative Policy Coverage:
Slide 14: 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 94.4% 94.0% 33.1% 27.5% 65.9% 61.3% 66.5% Higher share of Agreed Network Centralised Medical Underwriting Hospitals FY20 FY21 9M FY22 Adjustment impact Adjusted Loss Ratio Note
Slide 15: Extensive Claims Processing and Network Negotiation
5 Extensive Claims Processing and Network Negotiation Increased ANH(2) Share… 7+mn Proportion of total cashless claims Claims Settled Since Inception(1) Intelligent Automation ‘Twinkle Bot’ to drive customer engagement 63% Nurture Service Providers who follow best 49% 55% practices 87% FY19 FY21 9M
Slide 16: Financial Performance
6 Financial Performance Combined Ratio Opex/GWP Ratio 122.1% 125.0% 106.4% 27.5% 93.4% 33.1% 75.2% 66.5% 16.6% 65.9% 61.3% 16.0% 14.9% 15.5% 27.5% 27.7% 31.2% 31.0% FY20 FY21 9M FY21 9M FY22 FY20 FY21 9M FY21 9M FY22 Adjustment Impact Loss Ratio Expense Ratio Profit Before Tax (PBT) PBT Adjusted PBT
Slide 17: Robust Investment Performance
6 Robust Investment Performance Total Investments Assets Investment Income INR billion Investment Leverage INR billion 104% 120 2.1x 2.1x 2.5 100 1.9x 1.8x 2.0 44% 80 1.5 60 6.1 104 1.0 40 4.2 68 61 0.5 2.9 3.0 20 43 0 0.0 FY20 FY21 9M FY21 9M FY22 FY20 FY21 9M FY21 9M FY22 Attractive Returns... …wi
Slide 18: Agenda
Agenda 1 Our Strategy 2 Performance Update 3 Industry Overview 4 ESG: Strategy and Implementation Areas 17
Slide 19: Indian Health Insurance: Highly Underpenetrated and Growing
Indian Health Insurance: Highly Underpenetrated and Growing Health Insurance Penetration(1) Gross Gross direct direct premium premium as as % % of of Nominal NominalGDP GDP -- 2019 2019 4.1% 2.3% 2.0% 0.8% 0.7% 0.4% US Germany World Median Argentina China India Overall Health Insurance Retail Health
Slide 20: Standalone Players Continuously Gaining Share
Standalone Players Continuously Gaining Share SAHIs leading Industry Growth Due to Focus on Retail Health CAGR between FY15-21 % Market Share of Retail Health Insurance 39% 21% 19% 50% 13% 9M FY2022 Market Share SAHI Private Industry PSU • Single product focus to better cater customer requirements 2
Slide 21: Retail Health Insurance: Most Attractive Segment
Retail Health Insurance: Most Attractive Segment Lowest Claims Ratio …in Addition to Industry Claims ratio, FY20 Industry Claims ratio, FY21 with COVID impact More Convenient than Corporate Plans 73% 85% Higher Growth Rate Retail Retail Increasing Penetration Rising Customer Awareness 92% 120% Gover
Slide 22: Agenda
Agenda 1 Our Strategy 2 Performance Update 3 Industry Overview 4 ESG: Strategy and Implementation Areas 21
Slide 23: ESG: Strategy and Implementation Areas
ESG: Strategy and Implementation Areas Health Insurance is a Social business protecting Health and Wealth of Customers Strategic Pillars of ESG Environment Social Governance Undertake initiatives to Consistent work in areas To operate the business contribute to creating a of Healthcare, in Transpare
Slide 24: ESG: Strategy and Implementation Areas
ESG: Strategy and Implementation Areas Environment Social Energy and Water Saving Offering free telemedicine services for non- communicable diseases • LED lighting and energy efficient AC installations • 3/5 star rated appliances with regular maintenance Providing food to underprivileged persons in
Slide 25: ESG: Strategy and Implementation Areas
ESG: Strategy and Implementation Areas Governance Board Structure Data /Cyber Security 50% - Independent directors Enforcing leading practices and controls through effective Cyber 2 Women independent directors security Policy and Framework Evaluation framework for directors Risk Management Business
Slide 26: Thank You
THANK YOU a2|8 Health Personal & Caring | Insurance The Health Insurance Specialist
Slide 27: Glossary
Glossary Particulars FY Financial Year GWP Gross Written 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 Around Time 26
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