Arihant Capital IPO Report on Star Health and Allied Insurance Companies
Star Health and Allied Insurance Company Ltd. (Star) is one of the largest private health insurance companies in India. Intended in 2006, he had a market share of 15.8% on FY21. From becoming the first independent health insurance company (“Sahi”) in India in 2006, where he has developed into the largest Sahi company in the Indian health insurance market. The company’s main focus is on the retail and group health insurance market that accounts for 89.3% and 10.7% of the total gross premium written gross (GWP) respectively at FY21. It has also been consistently ranked first in the retail health insurance market in India based on GWP for the last three years. At FY21, retail health GWP more than 3x GWP retail health from the next highest health insurance market participants, implying that they are well positioned to get market share and grow a business.
Assessment and Outlook
In FY21, he has posted a loss due to one-off and a higher claim ratio because Covid, which is expected to normalize the POST FY22E. The combined ratio is the best in the industry at 92-94%, except for FY21, which is influenced by once. Health insurance penetration (premium as a percentage of GDP) in India at 0.4% significantly reduces the global average of 2%. We suggest that investors subscribe to long term.
