Star Health Q3 Results: Profit Rises 38%, Beats Estimates

Star Health and Allied Insurance Co.'s third quarter profit increased, beating analysts' estimates.

The private standalone health insurer's profit rose 38% year-on-year to Rs 290 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 210-crore profit estimated by analysts tracked by Bloomberg.

Sequentially, the bottom line surged 131%.

The company earned a net premium of Rs 3,294 crore, a 15% increase over a year earlier.

• Revenue rose 16% to Rs 3,456 crore.

• The operating profit ratio was at 8% vs 8.1%.

• Retail health reported a segmental profit fall of 9% to Rs 106 crore.

• Group health profit was down 6% at Rs 8.3 crore.

• Solvency ratio—which measures the extent to which assets cover commitments for future liabilities—rose to 2.23 from 2.17. The minimum regulatory requirement is 1.50.

• The expenses of management to net written premium ratio rose to 31.31% from 30.6%.

Shares of Star Health ended 1.33% higher on Tuesday at Rs 565.45 apiece, as compared with a 1.11% decline in the benchmark BSE Sensex.