Star Health Q4 Results Review - Inline Performance; Combined Ratio At 92.8%: Motilal Oswal

Motilal Oswal Report

Star Health and Allied Insurance Company Ltd.'s profit jumped 40% YoY in Q4 FY24 to Rs 1.4 billion, in line with our estimate.

The incurred claims ratio came in at 64.1% (360 basis points YoY) versus our estimate of 62.7% in Q4. The expense ratio (including commission) stood at 28.6% versus our estimate of 30%. Hence, the combined ratio came in at 92.8% (in line).

For FY24, net earned premium/profit after tax grew 15%/37% YoY to Rs 129 billion/Rs 8.5 billion and the combined ratio was at 96.7% (versus 95.3% in FY23).

Star Health is expected to increase prices by 15-20% in Q1 FY25 for senior citizen health insurance product and Young Star insurance product. Given the long-term growth potential for the industry, along with investments by Star Health in profitable channels and products, we reiterate our Buy rating on the stock with a target price of Rs 730 (based on 30 times FY26E earnings per share).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.