Star Health & Allied Insurance Co. Ltd. · NSE:STARHEALTH
Star Health & Allied Insurance — Q4 FY2024 Earnings Presentation
27 slides from Star Health & Allied Insurance's earnings presentation, Apr 30, 2024
Slide 1: Earnings Call Presentation cover letter to exchanges
Date: April 30, 2024 Place: Chennai Ref: SHAI/B & S/SE/25/2024-25 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 Mumba
Slide 2: Investor Presentation Q4FY24 & 12MFY24
Investor Presentation Q4FY24 & 12MFY24 April 2024
Slide 3: Key Pillars of our Strategy
Key Pillars of our Strategy 33% 59% 1 Leadership in Retail Health Retail Health Insurance Market Share Retail Health Market Share among SAHIs 701k Agents; 33% 2 Well Spread Distribution Network 881 Branches Fresh Business from Non-agency 65% INR 9.7bn 3 Investment in Technology Digital Issuance GWP
Slide 4: Key Performance Indicators (1/2)
Key Performance Indicators (1/2) Particulars Fiscal Year Ended March 31, (INR millions, unless otherwise stated) 2022 2023 2024 GWP 1,14,635 1,29,525 1,52,545 Period-on-period growth of GWP 22% 13% 18% Retail Health Renewal Premium Ratio 94.0% 95.0% 98.4% Number of agents (in '000s) 550 626 701 Numb
Slide 5: Key Performance Indicators (2/2)
Key Performance Indicators (2/2) Claims, Expense and Combined Ratio Profit After Tax (PAT) (INR billion) 37% 95.3% 96.7% 91.3% 92.7% 8.5 6.2 65.0% 66.5% 62.0% 64.1% 40% 1.4 30.3% 30.2% 29.4% 28.6% 1.0 FY23 FY24 4QFY23 4QFY24 FY23 FY24 4QFY23 4QFY24 Claims Ratio Expense Ratio PAT Note: All numbers ar
Slide 6: Agenda
Agenda Our Strategy Performance Update Industry Overview ESG: Strategy and Implementation Areas
Slide 7: Leadership in Attractive Retail Segment
Leadership in Attractive Retail Segment Retail Health Market Share Gross Written Premium (INR billion) +18% 307 354 422 +13% 153 130 115 33% 34% 33% 142 103 121 12 8 11 FY22 FY23 FY24 FY22 FY23 FY24 Retail Health Industry Size in INR billion Retail Health, Travel & PA Group
Slide 8: Largest & Well Spread Distribution Network
Largest & Well Spread Distribution Network Total Agency Force Sponsored Health Agency Force In 000’s In 000’s 14.9% 23.6% 626 701 111 462 550 79 92 59 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Channel wise mix, FY24 Extensive Branch Network Digital Other Direct Banca 4% 6% Brokers 3% 5% 807 835 881 73
Slide 9: Extensive Footprint in Alternate Distribution Channels
Extensive Footprint in Alternate Distribution Channels Partner Integration 39% Fresh Banca Growth 58 Banca + NBFC tie-ups
Slide 10: Continued Focus on Digital Growth
Continued Focus on Digital Growth Digital Acquisition Digital Issuance GWP acquired through online channels, INR ‘billion % of premium collection 9.7 60% 62% 65% 8.9 7.2 FY22 FY23 FY24 FY22 FY23 FY24 34% 5.7m+ Fresh Digital Customer App Growth – (FY24) downloads Note: Digital includes web-sales, tel
Slide 11: Diversified & Specialized Product Suite
Diversified & Specialized Product Suite 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 15.1% 15.5% 14.2% FY22 FY23 FY24
Slide 12: Strong Domain Expertise Driving Superior Claims Ratio
Strong Domain Expertise Driving Superior Claims Ratio Net Incurred Claims Ratio(1) Increasing Sum Assured Growth of Average Sum Assured in Retail Health policies 65.0% 66.5% 64.1% 62.0% 13% 11% 10% 10% FY23 FY24 4QFY23 4QFY24 FY23 FY24 Claims Ratio New Overall (1) Net incurred claims ratio is define
Slide 13: Extensive Claims Processing and Network Negotiation
Extensive Claims Processing and Network Negotiation ANH(2) Share… 10.7m No of Claims Proportion of total cashless claims 95% Settled since Cashless Inception(1) processing < 2 hr 74% 67% 64% 468bn 14k+ Amount of Claims settled since Network Inception(1) Hospitals FY22 FY23 FY24 Note: (1) Data as of
Slide 14: Agenda
Agenda Our Strategy Performance Update Industry Overview ESG: Strategy and Implementation Areas
Slide 15: Financial Performance
Financial Performance Combined Ratio Opex/GWP Ratio 95.3% 96.7% 92.7% 91.3% 65.0% 66.5% 62.0% 64.1% 15.9 15.7 14.5 13.2 30.3% 30.2% 29.4% 28.6% FY23 FY24 4QFY23 4QFY24 FY23 FY24 4QFY23 4QFY24 Claims Ratio Expense Ratio Profit Before Tax (PBT) Profit After Tax (PAT) (INR billion) (INR billion) +37% +
Slide 16: Robust Investment Performance
Robust Investment Performance Total Investments Assets Investment Income INR billion Investment Leverage INR billion 2.4x 2.4x 2.4x +30% 200 2.5 2.0 150 1.5 100 10.8 155 1.0 +34% 134 8.3 50 114 0.5 2.2 2.9 0 0.0 FY22 FY23 FY24 FY23 FY24 Q4FY23 Q4FY24 Steady Returns... …with fixed income portfolio Lo
Slide 17: IFRS Earnings
IFRS Earnings ( Rs in Crs) Particulars FY2023 FY2024 Profit as per IGAAP 619 845 RoE as per IGAAP 12.4% 14.4% IFRS Adjustment Lease and Security Deposit -0.7 -0.7 Deferred Expense on Procurement Cost 162.2 213.7 Unrealised Gain / (Loss) on Investments 21.1 103.5 Provision - Expected Credit Loss (ECL
Slide 18: Agenda
Agenda Our Strategy Performance Update Industry Overview ESG: Strategy and Implementation Areas
Slide 19: India Health Insurance: Underpenetrated & Growing
India Health Insurance: Underpenetrated & Growing Global non-life premiums (2022) grew by 5% y-o-y to USD4,060bn with Health contributing almost half(1) Commercial lines 26% 49% Health 25% Personal lines India Health Insurance(2) India Retail Health Insurance INR billion INR billion 21% 20% 1,078 42
Slide 20: Standalone Players Continuously Gaining Share
Standalone Players Continuously Gaining Share SAHIs leading Industry Growth Due to Focus on Retail Health CAGR between FY19-24 % Market Share of Retail Health Insurance 24% 23% 18% 12% 56% FY2023 Market Share SAHI Private Industry PSU • Single product focus to better cater to customer 44% requiremen
Slide 21: Agenda
Agenda Our Strategy Performance Update Industry Overview ESG: Strategy and Implementation Areas
Slide 22: ESG: Strategy and Implementation Areas
ESG: Strategy and Implementation Areas Health Insurance is a Social business protecting Health and Wealth of 43 Customers S&P Global ESG Score FY23 ESG Framework for 2024-25 Thematic areas of focus Environment Social Governance • Waste Management • Financial inclusion through CSR • ESG Knowledge in
Slide 23: ESG Initiatives - Environment
ESG Initiatives - Environment Energy Saving •Green building certificate pursuit in new office (documentation stage, result expected by Jun’24) •Electrical appliances purchased only if BEE rating is three or above •Certificates provided by IT hardware vendors (on carbon offsetting due to purchase of
Slide 24: ESG Initiatives - Social
ESG Initiatives - Social Community Employees •CSR activities in health clinics •Human rights practices according to regional •Community welfare activities by individual employees laws, OHS policy, anti-discrimination, anti- of their own accord harassment, equal employment opportunities (no gender bi
Slide 25: ESG Initiatives - Governance
ESG Initiatives - Governance Comprehensive reporting on Established narrative on governance, conduct and board climate risk assessment related matters in annual report Strong risk culture and disclosure Materiality metrics reporting for on the same external stakeholders is robust 10+ new policies on
Slide 26: Thank You
THANK YOU
Slide 27: 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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