The fifth successive quarter of underwriting profit improvement
FinTech BizNews Service
Mumbai, 29 October, 2026: Star Health and Allied Insurance Company Limited (“Star Health”), India’s largest standalone health insurer, today announced its financial results for the quarter and half-year ended September 30, 2026. The Company’s Profit After Tax (PAT) increased 233% YoY from Rs80 Crores in Q2 FY26 to Rs265 Crores in Q2 FY27. Underwriting Profit swung positively from a loss of Rs40 Crores in Q2 FY26 to a profit of Rs99 Crores in Q2 FY27.
The Company’s Underwriting Profit for H1 FY27 swung positively from a loss of Rs24 Crores in H1 FY26 to a profit of Rs210 Crores in H1 FY27. Underwriting Profit for H1 FY27 exceeded FY26 full year underwriting profit of Rs198 Crores.
Performance highlights for Q2 FY27
Business Performance
§ Retail Health fresh GWP (Reported 1/N basis) increased 35% YoY
Financial Performance
§ Combined Insurance Service Ratio (CISR): 98.0% (improvement of 2.9% over 100.9% in
Q2 FY26)
Performance highlights for H1 FY27
Business Performance
§ Retail Health fresh GWP (Reported 1/N basis) increased 36% YoY
Financial Performance
§ Combined Insurance Service Ratio (CISR): 97.9% (improvement of 2.4% over 100.3% in
H1 FY26)
The Company tracks profitability through its ‘Normalised PAT’ framework, which is pegged to a normalised annual investment yield of 8% to provide a view of underlying profitability insulated from short-term mark-to-market volatility. Normalised PAT for Q2 FY27 increased 70% YoY to Rs390 Crores and increased 56% YoY to Rs775 Crores for H1 FY27.
Claims Excellence & Customer Trust
§ Company Net Promoter Score (NPS) increased by 4 points to 65
The Company continued to strengthen its claims ecosystem through AI/ML-enabled analytics, network management, wellness interventions, teleconsultation and technology-led claims processing, with the objective of improving precision, efficiency and customer experience.
Digital First approach
Digital remained a key lever for both growth and efficiency during the quarter. The Company’s proprietary Digital D2C channel was the fastest-growing channel with 137% YoY growth in H1 FY27, led by younger customers, higher sum-insured levels and increased participation beyond Metro cities.
97% of fresh policies were sourced digitally, reflecting the depth of digital adoption across the Company’s retail distribution franchise.
During the quarter, the Company upgraded its customer relationship management platform to Salesforce, sharpening lead management and conversion in D2C, and scaled up AI-powered bots across customer acquisition and service. More than half of active agents now use ATOM PRO, the Company’s AI-enabled distribution platform. The Star Health Customer App exceeded 17 million downloads, with 1.5 million monthly active users. In claims, 96% of claims are now processed on the Company’s new AI-enabled platform, with strengthened detection of fraud, waste and abuse.
Distribution Strength
Star Health’s proprietary distribution continued to drive growth, with Agency and Digital D2C together contributing over 90% of GWP in H1 FY27. The Company added 39,000 agents during the half year, taking its agency force to 8.7 lakh, the largest among standalone health insurers, while agent productivity rose 19% YoY. 93% of fresh business came from customers buying health insurance for the first time, and non-metro geographies contributed over 65% of fresh business.
CEO Commentary
Commenting on the performance of the Company, Mr. Anand Roy, CEO & Managing Director, Star Health and Allied Insurance Company Limited, said:
“Q2 FY27 marked the fifth successive quarter of improvement in underwriting result, and our underwriting profit for the first half of this fiscal has already exceeded that of entire last year. This performance is reflective of structural levers, such as disciplined risk selection, risk-based pricing, sharper claims management, enhanced provider relationships and scale up of wellness initiatives. Our proprietary distribution continues to expand the market, bringing in first-time buyers to health insurance. Strategic investments in AI and digital capabilities are enhancing speed, precision, and operational efficiency, serving as a critical source of operating leverage as we scale. We enter the second half of the year with confidence and are committed to building a resilient franchise that yields long-term value for both customers and shareholders.”
