Star Health and Allied Insurance Company Limited (Star Health Insurance),
India’s premier health insurance provider, has reached a critical milestone by receiving a credit rating upgrade from India Ratings and Research. The company’s Long-Term Issuer Rating has been upgraded to ‘IND AA+’ from ‘IND AA’, with a stable outlook. Furthermore, Star Health’s subordinated debt has been raised to ‘IND AA’ from ‘IND AA-‘. The upgrading highlights Star’s consistent profitability, leading position, and extensive distribution network. Recently, Care Ratings gave Star Health Insurance a credit rating of ‘CARE AA+‘ with a Stable Outlook.
This upgrade recognizes Star Health’s outstanding performance and strong market position in the Indian insurance industry. The company has consistently shown its strength through sustained underwriting profits, market leadership, and a large distribution network. With a dominating 33% market share in the retail health category and a remarkable 5.3% in the total general insurance field, Star Health Insurance is a powerful force in the business.
The company’s remarkable growth trajectory, with gross written premiums growing at a CAGR of 23.1% from FY19 to FY24 and reaching INR 152.5 billion, demonstrates its strong financial position. The profitability of Star Health Insurance has also significantly improved; in FY24, the combined ratio stabilized at 96.67%, and the return on equity increased to 14.4%.
“This upgrade in our credit rating from India Ratings reaffirms our commitment to excellence and our market leadership position,” said Aneesh Srivastava, CIO of Star Health Insurance. It is a reflection of our clients’ faith in us and our team’s commitment to excellence.
Our goal is to continue offering a stable and strong financial performance to our esteemed clients while also giving them an amazing experience.” Star Health’s emphasis on retail health insurance, extensive distribution network, and management team’s experience are factors that contributed to the rating increase. With a solvency margin for FY24 of 2.21x, significantly more than what is required by law, the business is well-positioned for long-term growth and market leadership.
With this improved credit rating, Star Health is still dedicated to its goal of providing everyone with access to high-quality healthcare through creative insurance options.
About Allied Insurance and Star Health:
Star Health Insurance, which has been in operation since 2006, is the top independent health insurer in India (BSE: 543412; NSE: STARHEALTH). The Company offers Health, Personal Accident and Travel Insurance, with specialist packages for cancer, diabetes, cardiac ailments, senior persons, women and children. With 881 locations, 14,000+ network hospitals, 700,000+ agents, and solid bancassurance agreements, Star Health boasts a comprehensive distribution network. The Company has settled more than one crore claims, making it the first in India. Star Health declared a net value of Rs 6,339 Cr and a gross written premium of Rs 15,254 Cr for FY24.
