Star Health & Allied Insurance Co. Ltd. · NSE:STARHEALTH
Star Health & Allied Insurance — Q1 FY2023 Earnings Presentation
20 slides from Star Health & Allied Insurance's earnings presentation, Jul 29, 2022
Slide 1: Earnings Call Presentation Intimation to Stock Exchanges
Date: July 29, 2022 Place: Chennai Ref: SHAI/B & S/SE/73/2022-23 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 Mumbai
Slide 2: Q1FY23 Performance Review
Q1FY23 PERFORMANCE REVIEW July 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 32% Retail Health 53% Retail Health 1 Leadership in Retail Health Insurance Market Accretion Market Share Share 22% CAGR in no. of 2 Well Spread Distribution Network agents since FY20 to 0.56 million 807 Branches INR 2.0bn GWP 64% 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, Three Months Ended June 30, (INR millions, unless otherwise stated) 2021 2022 2021 2022 GWP 93,885.4 1,14,634.7 21,851.0 24,636.6 Period-on-period growth of GWP 36.8% 22.1% 42.0% 12.7% Retail Health Renewal Premium Ratio 97.9%
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% 121.1% 5.9 5.8 33.1% 21.3% 98.2% 49.6% 0.7% 2.1 2.5 65.8% 65.6% 61.3% -2.1 -2.1 41.4% 27.7% 30.8% 30.1% 32.0% FY21 FY22 Q1FY22 Q1FY23 -10.9 -10.4 FY21 FY22 Q1FY22 Q
Slide 9: Leadership in Attractive Retail Segment
1 Leadership in Attractive Retail Segment Retail Health Market Share Gross Written Premium (INR billion) 263 307 65 72 +22% 115 94 31% 33% 29% 32% 101 FY21 FY22 Q1FY22 Q1FY23 82 +13% Retail Health Industry Size in INR billion 22 25 Retail Health Accretion Market Share 23 19 53% 1 10 2 12 0 0 3 2 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 22.2% In 000’s 37.9% 550 567 79 82 462 361 59 40 FY20 FY21 FY22 Q1FY23 FY20 FY21 FY22 Q1FY23 Channel wise mix and growth, Q1FY23 Q1FY23 81% 8% 4% 4% 2% Channel Mix 57% 20% 29% -38% -57% Corporate
Slide 12: Extensive Footprint and Alternate Distribution Channels
2 Extensive Footprint and Alternate Distribution Channels Extensive Branch Network Partner Integration 737 807 760 807 FY21 FY22 Q1FY21 Q1FY22 Well distributed footprint across enables Pan-India growth Focus on SME Group Health Sales INR billion -5% 64% 1.1 1.0 SME contribution Q1FY22 Q1FY23 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 29% 56% 60% 64% Growth 1.5 2.0 FY21 FY22 Q1FY22 Q1FY23 FY21 FY22 Q1FY23 Hyper-personalization 1.6mn 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 Health policies Disciplinary action against erring hospitals 94.4% 87.1% 23% 33.1% 21.3% 66.3% 19% 0.7% 14% 10% 1,185 FY22 61.3% 65.8% 65.6% FY
Slide 16: Extensive Claims Processing and Network Negotiation
5 Extensive Claims Processing and Network Negotiation ANH(2) Share… Proportion of total cashless claims 7.8mn Claims Settled Since Inception(1) 64% 60% 56% 55% 49% FY19 FY21 FY22 Q1FY22 Q1FY23 90% Cashless Largest Hospital network authorization< 2 hr 13K+ Network Valuable service provider (VSP)
Slide 17: Financial Performance
6 Financial Performance Combined Ratio Opex/GWP Ratio 122.1% 117.9% 121.1% 21.3% 98.2% 33.1% 49.6% 0.7% 61.3% 65.8% 65.6% 41.4% 16.0% 16.1% 17.3% 14.9% 27.7% 30.8% 30.1% 32.0% FY21 FY22 Q1FY22 Q1FY23 FY21 FY22 Q1FY22 Q1FY23 Adjustment Impact Adjusted Claims Ratio Expense 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 2.4x 2.4 +87% 120 2.3 2.5 100 1.9x 2.0 80 1.5 60 114 115 7.9 1.0 +41% 40 83 68 4.2 20 0.5 1.4 2.0 0 0.0 FY21 FY22 Q1FY22 Q1FY23 FY21 FY22 Q1FY22 Q1FY23 Steady Returns... …with fixed
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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