Star Health and Allied Insurance Company Limited IPO

Star Health and Allied Insurance Company is one of the leading private health insurers in India with a market share of 15.8% in financial year 2021, according to CRISIL Research. In Fiscal 2021 the total gross written premiums (GWP) were Rs 9348.95 crore and in April-September 2021, total GWP was 50,69.78 crore.

Star Health has successfully built one of the largest health insurance hospital networks in India, with 11,778 hospitals as of September 30, 2021. Out of which, they have pre-agreed arrangements with 7,741 hospitals, or 65.7%, of the total number of hospitals. In Fiscal 2021 and the six months ended September 30 of FY22, they have processed 3.3 lakh and 2.5 lakh claims, respectively.

The company’s comprehensive health insurance product suite have insured 2.05 crore lives in fiscal 2021 in retail health and group health, which accounted for 89.3% and 10.7%, respectively, of its total health GWP in Fiscal 2021.

The insurance company distributes their health insurance policies primarily through individual agents, which accounted for 78.9% of their GWP in FY21.

As of September 30, 2021 the company’s distribution network had grown to 779 health insurance branches spread across 25 states and 5 union territories in India. Their wide branch network is complemented by 562 Sales Managers Stations (“SMS”), which are small individual service centres, and over 6,892 in-house sales managers. Their other origination channels include distribution by direct online sales through telemarketing and website, brokers, insurance marketing firms and web aggregators.

The company’s insurance products cater to various customer segments including individuals, families, students, senior citizens, as well as persons with pre-existing medical conditions across the broader middle market customer segment.