Star Health & Allied Insurance Co. Ltd. · NSE:STARHEALTH
Star Health & Allied Insurance — Q1 FY2024 Earnings Presentation
18 slides from Star Health & Allied Insurance's earnings presentation, Jul 29, 2023
Slide 1: Cover letter to stock exchanges: revised earnings call presentation
Date: July 29, 2023 Place: Chennai Ref: SHAI/B & S/SE/92/2023-24 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 Mumbai
Slide 2: 1QFY24 Performance Review
1QFY24 PERFORMANCE REVIEW July 2023
Slide 3: Key pillars of our Strategy
Key pillars of our Strategy 32% Retail Health 33% 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 0.64 million 856 Branches INR 2.1bn GWP 66% premium value 3 Investment in Technology
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) 2022 2023 2022 2023 GWP 1,14,634.7 1,29,524.7 24,636.6 29,486.3 Period-on-period growth of GWP 22.1% 13.0% 12.7% 19.7% Retail Health Renewal Premium Ratio 94.0
Slide 5: Key Performance Indicators (2/2)
Key Performance Indicators (2/2) Claims, Expense and Combined Ratio Profit After Tax (PAT) (INR billion) PAT Adjusted PAT 117.9% 7.7 5.8 6.2 21.3% 95.3% 98.2% 97.8% 0.4% 0.7% 0.0% 2.9 2.9 2.1 2.5 65.8% 64.6% 65.6% 65.4% 30.8% 30.3% 32.0% 32.4% FY22 FY23 Q1FY23 Q1FY24 -10.4 FY22 FY23 Q1FY23 Q1FY24 Ad
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 72 85 +13% 130 115 33% 34% 32% 32% 119 101 +20% FY22 FY23 Q1FY23 Q1FY24 25 29 Retail Health Industry Size in INR billion 27 2 2 0 23 0 12 8 2 2 FY22 FY23 Q1FY23 Q1FY24 Retail Group PA Tra
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 15.7% In 000’s 23.7% 626 643 92 95 550 79 462 59 FY21 FY22 FY23 Q1FY24 FY21 FY22 FY23 Q1FY24 Channel wise mix and growth, Q1FY24 Q1FY24 81% 7% 5% 4% 2% Channel Mix 35% 29% 20% 25% 8% Corporate In
Slide 9: Extensive Footprint and Alternate Distribution Channels
2 Extensive Footprint and Alternate Distribution Channels Extensive Branch Network Partner Integration 807 835 807 856 FY22 FY23 Q1FY23 Q1FY24 Focus on SME & Banca Group Health Sales INR billion 76% SME 1.0 1.3 SME + Banca contribution Bancassurance 0.2 0.2 Q1FY23 Q1FY24 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% 66% 7.2 2.0 2.1 FY22 FY23 Q1FY23 Q1FY24 FY22 FY23 Q1FY24 26% Growth – Fresh Digital (Q1FY24) 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 (%) 15.5% 17.3% 15.8%
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% 21.3% 65.4% 65.0% 10% 0.4% 0.0% 10% 10% 2.8% 1.9% 65.8% 64.6% 65.4% FY22 FY23 Q1FY24 FY
Slide 13: Extensive Claims Processing and Network Negotiation
5 Extensive Claims Processing and Network Negotiation ANH(2) Share… Proportion of total cashless claims 9.3m Claims Settled Since Inception(1) 67% 64% 61% 56% FY22 FY23 Q1FY23 Q1FY24 94% Cashless Largest Hospital network authorization< 2 hr 15.1kNetwork 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% 21.3% 95.3% 98.2% 97.8% 0.4% 0.7% 0.0% 65.8% 64.6% 65.6% 65.4% 17.3 18.3 16.0 15.9 30.8% 30.3% 32.0% 32.4% FY22 FY23 Q1FY23 Q1FY24 FY22 FY23 Q1FY23 Q1FY24 Adjustment Impact Expense Ratio Adjusted Claims Ratio Profit Before Tax (PBT) Profit
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% 140 2.3x 2.2x 2.5 120 2.0 100 80 1.5 60 134 133 7.9 8.3 +23% 114 115 1.0 40 0.5 20 2.0 2.5 0 0.0 FY22 FY23 Q1FY23 Q1FY24 FY22 FY23 Q1FY23 Q1FY24 Steady Returns... …wit
Slide 17: Thank You
THANK YOU Health Insurance The Health Insurance Specialist
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
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