Mumbai: Star Health and Allied Insurance Company reported a sharp turnaround into losses in Q4 FY26, with net loss at Rupees 55 crore compared to a profit of Rupees 271 crore in the year-ago quarter, even as insurance revenue rose 14 percent to Rupees 4,671 crore. The decline was driven by weak investment performance despite steady underwriting improvements, reflecting pressure on overall profitability.
The company’s insurance revenue increased from Rupees 4,100 crore in Q4 FY25 to Rupees 4,671 crore in Q4 FY26, supported by growth in policy issuance and premium collections. However, profit before tax slipped to a loss of Rupees 60 crore from a profit of Rupees 362 crore a year earlier. Claims rose 8 percent year-on-year to Rupees 3,017 crore, while insurance service expenses climbed to Rupees 4,136 crore during the quarter.
Sequential operating performance showed improvement in core underwriting metrics. Insurance service result rose 51 percent year-on-year to Rupees 505 crore, indicating stronger operational efficiency. The combined ratio improved significantly to 95.7 percent from 98.3 percent in the corresponding quarter, reflecting better claims management and cost discipline. A ratio below 100 percent indicates underwriting profitability.
However, the key drag on earnings came from investment income, which turned negative at Rupees 230 crore compared to a positive Rupees 310 crore in Q4 FY25. This swing weighed heavily on overall profitability, offsetting gains from core insurance operations. The expense ratio also inched up to 31.1 percent from 30.1 percent, indicating some cost pressures during the quarter.
For the full year FY26, the company reported a 16 percent increase in net profit to Rupees 911 crore, supported by higher insurance revenue of Rupees 17,999 crore. Normalised profit after tax stood at Rupees 1,222 crore, highlighting underlying strength excluding market-related volatility.
Overall, while Star Health demonstrated improved underwriting performance in Q4, earnings were impacted by investment market fluctuations, leading to a quarterly loss despite revenue growth.
Disclaimer: This summary is based on investor presentation data and is not investment advice.
