Star Health and Allied Insurance Company reported a standalone net profit of ₹111 crore for the quarter ended March 31, 2026 (Q4 FY26), compared with ₹50 lakh in the same quarter a year earlier, as net earned premium grew about 14% year on year to ₹4,327 crore from ₹3,798 crore. Profit was lower than the ₹128 crore recorded in the December 2025 quarter.
The Q4 FY26 performance reflects higher business volumes across the health portfolio, although sequential profitability moderated versus the previous quarter. The company’s results were disclosed in a filing with the stock exchanges. For the full financial year FY26, Star Health’s statutory net profit stood at ₹557 crore, down from ₹646 crore in FY25. Under the Ind AS accounting framework, however, the insurer reported an FY26 net profit of ₹911 crore, which it said represented 16% year-on-year growth. Management attributed the Ind AS outcome to premium expansion, better renewal metrics, a lower loss ratio, and tighter control of operating expenses. “FY26 has been a year of disciplined execution for Star Health. Our focus on prudent underwriting, operating efficiency, and retail health leadership has translated into stronger profitability and improved operating metrics,” said Anand Roy, CEO and managing director, Star Health and Allied Insurance Company Ltd, as reported by The Hindu Business Line.
Star Health reported gross written premium (GWP) of ₹20,369 crore for FY26 on an N basis, a 16% increase over the prior year. In Q4 FY26 alone, GWP was ₹6,529 crore, up 17% year on year, indicating continued scale-up in both retail and group health segments. The insurer estimated its FY26 market share at 31% in the standalone health insurance segment. It also reported an improvement in its combined ratio, which declined to 98.8% in FY26 from 101.1% in FY25. The movement in the combined ratio suggests a shift toward underwriting profitability after accounting for claims, commissions, and operating expenses.
On the claims side, Star Health said it settled around 30 lakh claims during FY26, with total payouts exceeding ₹11,900 crore. Renewal business remained central to its portfolio, with the company reporting a renewal persistency of 99%. The insurer added that digital and online-led channels accounted for about 20% of fresh retail sales for the year, indicating a gradual change in distribution mix toward technology-enabled sourcing.
The company’s financial performance is taking place within a health insurance market that is expected to expand in absolute size and in its share of overall insurance premiums. A study by SkyQuest projects that India’s health insurance sector will grow from US$15.99 billion in 2024 to about US$38.2 billion by 2032, implying a compound annual growth rate of 11.5%. Several factors are feeding into this outlook. Medical inflation and higher treatment costs are increasing the potential burden of out-of-pocket spending for households.
Awareness of health risks and the role of insurance as a financing mechanism is broadening across urban and semi-urban areas. Products are being distributed through multiple channels, including agents, corporate intermediaries, bancassurance partners, and digital platforms, which is expanding reach beyond traditional urban centres. The need to manage unplanned hospitalisation and treatment costs remains a primary reason for policy purchase and retention, particularly where access to private hospital networks is growing.
Group health insurance, especially employer-sponsored schemes, continues to generate a significant share of sector premiums due to pricing efficiencies and standardised coverage. At the same time, individual and family floater policies are recording higher uptake, as customers seek flexibility on sum insured, add-on covers, and network access. Hospitalisation policies remain the core product class, covering inpatient care and surgical procedures through reimbursement or cashless arrangements. Critical illness products, which pay a lump sum on diagnosis of specified conditions such as cancer or cardiovascular disease, are seeing broader use as a complement to hospitalisation cover, providing additional liquidity to address both medical and non-medical costs.
From a geographic standpoint, the National Capital Region (NCR), including Delhi and adjoining cities, remains one of the largest markets for health insurance, reflecting higher income levels and a concentration of corporate employers. Southern states such as Tamil Nadu and Karnataka are among the relatively faster-growing regions, supported by established healthcare infrastructure, a wide private hospital network, and increasing awareness of health protection. Regulatory measures by the Insurance Regulatory and Development Authority of India (IRDAI) in 2023 sought to improve access to health insurance. Changes included more flexible conditions for older customers and for individuals with pre-existing medical conditions. Industry participants expect these reforms to support deeper penetration and a broader risk pool over the medium term.
