Star Health & Allied Insurance Co. Ltd. · NSE:STARHEALTH
Star Health & Allied Insurance — H1 FY2024 Earnings Presentation
22 slides from Star Health & Allied Insurance's earnings presentation, Oct 31, 2023
Slide 1: Earnings call presentation cover letter to stock exchanges
Date: October 31, 2023 Place: Chennai Ref: SHAI/B & S/SE/139/2023-24 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: H1FY24 & Q2FY24 Performance Review
H1FY24 & Q2FY24 PERFORMANCE REVIEW October 2023
Slide 3: Key pillars of our Strategy
Key pillars of our Strategy 33% Retail Health 32% Retail Health 1 Leadership in Retail Health Insurance Market Accretion Market Share Share 16% CAGR in no. of 2 Well Spread Distribution Network agents since FY21 to 0.67 million 869 Branches INR 4.8bn GWP 65% premium value 3 Investment in Technology
Slide 4: Key Performance Indicators (1/2)
Key Performance Indicators (1/2) Particulars Fiscal Year Ended March 31, Six Months Ended September 30, (INR millions, unless otherwise stated) 2022 2023 2022 2023 GWP 1,14,634.7 1,29,524.7 56,565.6 66,803.2 Period-on-period growth of GWP 22.1% 13.0% 11.6% 18.1% Retail Health Renewal Premium Ratio 9
Slide 5: Key Performance Indicators (2/2)
Key Performance Indicators (2/2) Claims, Expense and Combined Ratio Profit After Tax (PAT) (INR billion) 117.9% 6.2 35% 98.4% 4.1 95.3% 97.9% 3.1 87.1% 65.0% 67.3% 67.1% 30.8% 30.3% 30.7% 31.3% PAT FY22 FY23 H1FY23 H1FY24 -10.4 FY22 FY23 H1FY23 H1FY24 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) 307 354 159 188 +13% 130 115 33% 34% 33% 33% +18% 119 67 101 57 FY22 FY23 H1FY23 H1FY24 61 52 Retail Health Industry Size in INR billion 2 12 2 8 1 4 1 4 FY22 FY23 H1FY23 H1FY24 Retail Group PA T
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 15.7% 23.7% 626 666 100 550 79 92 462 59 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 Channel wise mix, H1FY24 Extensive Branch Network Other Direct Digital 4% Banca 7% Brokers 2% 5% 807
Slide 9: Extensive Footprint and Alternate Distribution Channels
2 Extensive Footprint and Alternate Distribution Channels Partner Integration 57% Fresh Banca Growth – (H1FY24) Focus on SME & Banca Group Health Sales INR billion 77% SME 2.2 3.0 SME + Banca contribution Banca 0.5 0.4 H1FY23 H1FY24 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 4.1 4.8 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY24 38% Fresh Digital Growth – (H1FY24) Digitizing Customer Acquisition More than 80% o
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 (%) New Product launch
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 Fraud Analytics Growth of Average Sum Assured in Retail Health policies Impact on Claims outgo 87.1% 13% 65.0% 67.3% 67.1% 11% 10% 10% 2.9% 1.7% FY22 FY23 H1FY23 H1FY24 FY23 H1FY24 H1FY23 H1FY
Slide 13: Extensive Claims Processing and Network Negotiation
5 Extensive Claims Processing and Network Negotiation ANH(2) Share… Proportion of total cashless claims 9.8m Claims Settled Since Inception(1) 67% 66% 64% 66% FY22 FY23 H1FY23 H1FY24 90% Cashless Largest Hospital network authorization< 2 hr 14.2kNetwork Valuable service provider (VSP) introduced
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% 97.9% 98.4% 87.1% 65.0% 67.3% 67.1% 16.0 15.9 16.5 17.0 30.8% 30.3% 30.7% 31.3% FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 Claims Ratio Expense Ratio Profit Before Tax (PBT) Profit After Tax (PAT) (INR billion) +35% (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% 150 2.3x 2.3x 2.5 2.0 +23% 100 1.5 134 140 7.9 8.3 114 117 1.0 50 5.1 0.5 4.1 0 0.0 FY22 FY23 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 Steady Returns... …with fixed incom
Slide 17: Annexure: Accounting — IGAAP and IFRS
7 Annexure: Accounting — IGAAP and IFRS Particulars March 31, 2023 Profit as per IGAAP excluding ESOP cost 729 RoE as per IGAAP 14.7% Lease and Security Deposit -1 Deferred Acquisition Cost (DAC) 150 Unrealised Gain / (Loss) on Investments 21 Provision based on Expected Credit Loss (ECL) -2 Provisio
Slide 18: Thank You
THANK YOU 17
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
Slide 20: Star Health registers 35% jump in PAT in Q2FY24
Star Health registers 35% jump in PAT in Q2FY24 Registers a net profit of Rs. 125 crore for Q2FY24 Maintains robust solvency ratio at 2.1x Operating expense to GWP ratio was at a healthy 16.0% in Q2FY24 Chennai, 31 October 2023: Star Health and Allied Insurance one of India’s leading Health In
Slide 21: Press release: distribution network and financial growth
Star Health has a diversified distribution network comprising of strong digital channels, leading bancassurance partners, agency channel, corporate agents, brokers, point of sale persons (POS), insurance marketing firms, web aggregators, and direct business. As of 30 September 2023, Star Health has
Slide 22: For more information, please contact
As of 31st March 2023, Star Health had 835 branch offices spread across 25 states and 5 union territories in India. The company had 14,203 network hospitals pan India. In FY23, Star Health had a gross written premium of Rs. 12,952 crore and a net worth of Rs. 5,430 crore. Star Health and Allied Insu
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