Star Health Q3 Results Review - Strong Performance Driven By A Beat On Premium: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Star Health and Allied Insurance Company Ltd. reported a profit after tax of Rs 2.1 billion in Q3 FY23 versus Rs 931 million in Q2. This was 22% above our estimate led by better-than-expected net earned premium growth (16% beat) to Rs 29 billion. Gross direct premium income grew 10% YoY to Rs 31 billion. Star Health has maintained its guidance of 63-65% loss ratio and 93-95% combined ratio for FY24. The confidence in the guidance stems from price hike in the flagship product that contributed ~50% of the premium and growth from banca channels during the quarter. We raise our FY23E earnings per share by ~13% while broadly retaining our FY24/FY25 estimates, as the benefits from better-than-expected underwriting performance were offset by weaker-than-forecasted investment performance. Our combined ratio estimates are lower by 90 bps/40 bps/60 bps for FY23/ FY24/FY25 to 95.0%/93.8%/93.3%, respectively..Click on the attachment to read the full report:.Star Health Q3 Results: Profit Rises, Beats Estimates.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Star Health Q3 Results Review - Strong Performance Driven By A Beat On Premium: Motilal Oswal

Star Health has maintained its guidance of 63-65% loss ratio and 93-95% combined ratio for FY24.

Choose a plan