Star Health & Allied Insurance Co. Ltd. · NSE:STARHEALTH
Star Health & Allied Insurance — H1 FY2023 Earnings Presentation
20 slides from Star Health & Allied Insurance's earnings presentation, Nov 9, 2022
Slide 1: Earnings Call Presentation intimation letter to stock exchanges
Date: November 9, 2022 Place: Chennai Ref: SHAI/B & S/SE/138/2022-23 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: H1FY23 Performance Review
H1FY23 PERFORMANCE REVIEW November 2022
Slide 3: Agenda
Agenda 1 Our Strategy 2 Performance Update 2
Slide 4: Agenda: Our Strategy
Agenda 1 Our Strategy 2 Performance Update 3
Slide 5: Key pillars of our Strategy
Key pillars of our Strategy 33% Retail Health 46% 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 0.59 million 815 Branches INR 6.1bn GWP 63% premium value 3 Investment in Technology
Slide 6: Agenda: Performance Update
Agenda 1 Our Strategy 2 Performance Update 5
Slide 7: 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) 2021 2022 2021 2022 GWP 93,885.4 1,14,634.7 50,697.8 56,565.6 Period-on-period growth of GWP 36.8% 22.1% 28.2% 11.6% Retail Health Renewal Premium Ratio 97.
Slide 8: 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% 117.9% 119.2% 5.9 5.8 3.9 33.1% 21.3% 97.9% 3.1 36.8% 0.7% 65.8% 66.6% 61.3% 51.4% -3.8 -3.8 27.7% 30.8% 31.0% 30.7% FY21 FY22 H1FY22 H1FY23 -10.9 -10.4 FY21 FY22 H1FY22 H
Slide 9: Leadership in Attractive Retail Segment
1 Leadership in Attractive Retail Segment Retail Health Market Share Gross Written Premium (INR billion) 263 307 139 159 +22% 115 94 31% 33% 31% 33% +12% 101 57 FY21 FY22 H1FY22 H1FY23 51 82 Retail Health Industry Size in INR billion 43 52 Retail Health Accretion Market Share 46% 1 10 2 12 1 7 1 41%
Slide 10: Agenda
Agenda 1 Our Strategy 2 Performance Update 9
Slide 11: 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 21.4% 35.6% 550 586 85 462 79 361 59 40 FY20 FY21 FY22 H1FY23 FY20 FY21 FY22 H1FY23 Channel wise mix and growth, H1FY23 H1FY23 82% 11% 4% 2% 1% Channel Mix 28% 44% 19% -57% -77% Corporat
Slide 12: Extensive Footprint and Alternate Distribution Channels
2 Extensive Footprint and Alternate Distribution Channels Extensive Branch Network Partner Integration 737 807 779 815 FY21 FY22 H1FY22 H1FY23 Well distributed footprint across enables Pan-India growth Focus on SME Group Health Sales INR billion -8% 60% 2.4 2.2 SME contribution H1FY22 H1FY23 11
Slide 13: 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 5.4 7.2 6.1 28% 56% 60% 63% 4.8 Growth FY21 FY22 H1FY22 H1FY23 FY21 FY22 H1FY23 Hyper-personalization 1.7mn Digitizing Customer Customer App STAR POWER
Slide 14: 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 15: 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% 67.3% 0.7% 14% 14% 10% 1,185 FY22 61.3% 65.8% 6
Slide 16: Extensive Claims Processing and Network Negotiation
5 Extensive Claims Processing and Network Negotiation ANH(2) Share… Proportion of total cashless claims 8.2mn Claims Settled Since Inception(1) 66% 64% 63% 55% FY21 FY22 H1FY22 H1FY23 88% Cashless Largest Hospital network authorization< 2 hr 14k Network Valuable service provider (VSP) introduced
Slide 17: Financial Performance
6 Financial Performance Combined Ratio Opex/GWP Ratio 122.1% 117.9% 119.2% 33.1% 21.3% 97.9% 36.8% 0.7% 61.3% 65.8% 66.6% 51.4% 14.9% 16.0% 16.9% 16.5% 27.7% 30.8% 31.0% 30.7% FY21 FY22 H1FY22 H1FY23 FY21 FY22 H1FY22 H1FY23 Adjustment Impact Expense Ratio Adjusted Claims Ratio Profit Before Tax (PBT
Slide 18: Robust Investment Performance
6 Robust Investment Performance Total Investments Assets Investment Income INR billion Investment Leverage INR billion 2.5x +87% 2.4x 2.3x 120 2.5 100 1.9x 2.0 80 -5% 1.5 60 114 117 7.9 86 1.0 40 68 4.2 4.3 4.1 20 0.5 0 0.0 FY21 FY22 H1FY22 H1FY23 FY21 FY22 H1FY22 H1FY23 Steady Returns... …with fixe
Slide 19: Thank You
THANK YOU Health Insurance The Health Insurance Specialist
Slide 20: 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 19
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