Star Health and Allied Insurance Company Limited (Star Health Insurance), a leading player in India’s health insurance sector, has announced a significant credit rating upgrade from India Ratings and Research (Ind-Ra). The company’s Long-Term Issuer Rating has been elevated from ‘IND AA’ to ‘IND AA+’, with a Stable outlook, while its subordinated debt rating has improved from ‘IND AA-‘ to ‘IND AA’. This upgrade highlights Star Health’s consistent profitability, market leadership, and extensive distribution network.
Star Health Insurance holds a commanding 33% market share in the retail health segment and a 5.3% share in the broader general insurance market, solidifying its status as an industry leader.
Star Health’s financial performance has also been robust, with gross written premiums expanding at a 23.1% CAGR from FY19 to FY24, reaching INR 152.5 billion. The company has shown notable profitability improvements, with its combined ratio stabilizing at 96.67% in FY24 and return on equity climbing to 14.4%.
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With a solvency margin of 2.21x in FY24, well above regulatory requirements, Star Health is well-positioned for sustainable growth. As it moves forward with this upgraded credit rating, the company is set to further its mission of making quality healthcare accessible through innovative insurance solutions.
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