📈 Credit Rating Reflects Financial Stability and Reliability of Star Health Insurance

Star Health and Allied Insurance Company Limited has been assigned a CARE AA+; Stable rating (and CARE AA; Stable for subordinate debt of Rs 470 crore) by CARE Ratings. The rating acknowledges the company’s leading position in retail health insurance, comfortable solvency margins, and improving profitability metrics — even as its shares have underperformed the benchmark over the past year.

In the last year, Star Health's shares returned -5.41% compared with a >28% rise in the Nifty50 index — highlighting market volatility despite underlying business strengths.

Rationale & Key Rating Drivers

• Leading market position: Strong presence in the retail health insurance segment.
• Comfortable solvency margins: Solvency buffers provide financial stability.
• Improving profitability: Better underwriting practices have led to improved return metrics.
• Promoter support: Capital and management backing, including board and committee representation.

"Our centre of attention has been on sustainable long-term growth. ... This rating is a testament to our overall performance," said Anand Roy, MD & CEO, Star Health Insurance, underlining the company's focus on customer and stakeholder value through dynamic market conditions.

Rating Sensitivities — What Could Change the Rating?

Positive Triggers

• Consistent growth and sustained increase in market share.
• Continued improvement in underwriting profitability and return metrics.
• Able to raise growth capital while keeping solvency buffers comfortably above 2.2x.

Negative Triggers

• Material adverse changes in shareholding that reduce promoter support.
• Deterioration in underwriting performance leading to falling profitability.
• Solvency margin sustained below 1.70x.
• Significant reduction in scale of operations or market share.

CARE Ratings has given a 'Stable' outlook, expressing the view that Star Health will maintain its market position while focusing on underwriting profitable business and continued governance.

About Star Health Insurance

• Founded: 2006 — India’s first standalone health insurer.
• Business focus: Health, personal accident and overseas travel insurance with product innovation and service emphasis.
• Distribution & network: 877 branch offices, ~14,203 network hospitals, and ~6.84 lakh agents (as of Dec 31, 2023).
• FY23 figures: Gross Written Premium of ₹12,952 crore; Net Worth ~₹5,430 crore.

The CARE ratings for Star Health reflect both its scale in retail health insurance and the regulatory and capital framework that supports its operations. Investors and policyholders should monitor underwriting trends, solvency levels, and any corporate governance or ownership developments — as these factors will influence future rating actions.

Note: Financial markets and company fundamentals evolve; for investment decisions, refer to the latest filings, analyst reports, and official announcements.