NEW DELHI: Standalone health insurer Star Health and Allied Insurance Company reported a 50 per cent drop in net profit to Rs55 crore for the second quarter ended September 2025, compared with Rs11 crore a year earlier.
The decline in profit was largely attributed to a rise in claims ratio and a moderation in investment income, which offset the growth in premium collections during the quarter.
The insurer’s net written premium rose to around Rs4,250 crore, up from Rs3,800 crore in the same period last year, reflecting steady demand for retail health covers.
Star Health claims ratio moved up to around 69 per cent from 64 per cent a year ago, driven by higher hospitalisation costs and an uptick in chronic and lifestyle-related illnesses. The management said that while policy renewals remain robust, cost pressures in the healthcare ecosystem continue to weigh on underwriting margins.
Star Health, backed by investor Rakesh Jhunjhunwala’s estate, continues to hold a leading share in India’s standalone health insurance segment, with over one-third of the retail health insurance market.
The company said it is focusing on expanding distribution through digital and bancassurance channels and tightening cost controls to support profitability in the second half of the fiscal.
The Star Health stock closed marginally lower on the BSE ahead of the results announcement.
