Star Health and Allied Insurance, one of India’s leading health insurance companies, has reported its Q4 results for the fiscal year 2022. While the results show that the company’s profits missed estimates, the combined ratio has improved significantly.
According to the company’s financial statements, Star Health’s net profit for the quarter was Rs 31.4 crore, falling short of the estimated Rs 73 crore. However, the combined ratio for the quarter improved to 104.6%, down from 109.7% in the same quarter of the previous fiscal year.
The combined ratio is an important metric for insurance companies, indicating the amount of money paid out in claims and other expenses compared to the premiums collected. A ratio of less than 100% indicates that an insurance company is generating underwriting profit, while a ratio of more than 100% indicates that the company is paying out more than it is collecting in premiums.
Despite the lower-than-expected profits, Star Health’s Q4 results indicate a positive trend for the company’s financial performance. The improved combined ratio suggests that the company is managing its expenses effectively and generating underwriting profit, which bodes well for its future growth and profitability.
In a statement accompanying the results, Star Health’s management highlighted the challenges posed by the COVID-19 pandemic, but expressed confidence in the company’s ability to navigate the current environment and continue to grow its business.
The company’s Q4 results are a reminder of the importance of effective risk management and underwriting practices in the insurance industry. While the COVID-19 pandemic has posed significant challenges for insurers, companies that are able to manage their risks and control their expenses effectively are likely to emerge stronger in the long run.
In conclusion, Star Health’s Q4 results show missed profit estimates, but an improved combined ratio, suggesting that the company is managing its expenses effectively and generating underwriting profit. The results underscore the importance of effective risk management and underwriting practices in the insurance industry, particularly in challenging environments like the COVID-19 pandemic.