Star Health and Allied Insurance Company Limited has informed the exchange regarding Earning Call Transcripts

Date: October 31, 2026 Place: Chennai Ref: SHAI/B & S/SE/147/2026-27 To, To, The Manager The Manager Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot C/1, Dalal Street G Block, Bandra-Kurla Complex Mumbai – 400001 Mumbai – 400051 Maharashtra, India Maharashtra, India Scrip Code: 543412 Symbol: STARHEALTH Dear Sir/ Madam, Sub: Earnings Call Transcript – Q2 & H1 FY 2027 Further to the Company’s letter SHAI/B & S/SE/130/2026-27 dated October 16, 2026 regarding intimation of Q2 & H1 FY 2027 - Earnings Call, please find attached transcript of the call dated October 28, 2026 for your information and records. The above information is being hosted on the Company's website at www.starhealth.in Thanking You, For Star Health and Allied Insurance Company Limited Jayashree Sethuraman Company Secretary & Compliance Officer Encl: as above. Star Health and Allied Insurance Company Limited Q2 & H1 FY2027 Earnings Conference Call October 28, 2026 Management: Mr. Anand Roy – Managing Director and Chief Executive Officer Mr. Amitabh Jain – Executive Director & Chief Operating Officer Mr. Himanshu Walia – Executive Director & Chief Marketing Officer Mr. Nilesh Kambli – Chief Financial Officer Mr. Aneesh Srivastava – Chief Investment Officer Mr. Sombit Bhattacharyya – Head Investor Relations Page 1 of 18 Moderator: Ladies and gentlemen, good day and welcome to Star Health and Allied Insurance Company Limited's Q2 & H1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*” then “0” on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Devyanshi Dave from Adfactors PR Investor Relations Team. Thank you, and over to you, Ms. Dave. Devyanshi Dave: Good morning, everyone. From the senior management, we have with us Mr. Anand Roy, Managing Director and Chief Executive Officer, Mr. Amitabh Jain, Executive Director and Chief Operating Officer, Mr. Himanshu Walia, Executive Director and Chief Marketing Officer, Mr. Nilesh Kambli, Chief Financial Officer, Mr. Aneesh Srivastava, Chief Investment Officer, and Mr. Sombit Bhattacharyya, Head Investor Relations. Before we begin the conference call, I would like to mention that some of the statements made during the course of today's call may be forward-looking in nature, including those related to the future financials and operating performances, benefits and synergies of the company's strategies, future opportunities, and growth of the market of the company's services. Further, I would like to mention that some of the statements made in today's conference may involve risks and uncertainties. Thank you, and over to you, Mr. Roy. Anand Roy: Thank you, Devyanshi, and a very good morning to everyone. Thank you for joining Star Health's Earnings Call for the second Quarter and the first half of the Financial Year 2026-2027. As we enter the festive season, let me also wish you and your loved ones a very Happy Diwali in advance. My remarks today will comprise three parts. First, we will talk about our operating performance for Quarter 2 and H1 of Financial Year '27. Second, we will also see how the second half and beyond is shaping up for Star Health, and finally, we will also just give a brief perspective on the recent regulatory developments, which all of you are much aware of. So let me begin with the first part, our operating performance for Q2 and the first half of the Year FY26-27. The recalibration of our strategy that we started last year has delivered a turnaround in underwriting performance in FY26, and the run has continued through H1 of FY27. Quarter 2 of FY27 has marked the 5th successive quarter of improvement in our loss ratios and underwriting results. This is a clear evidence of a structural turnaround in our operating performance. The highlights of our performance for Q2 and H1 FY27 are as follows: Page 2 of 18 The gross written premium on reported 1/n basis increased 19% year-on-year to Rs. 5,275 crore for Quarter 2 and also by 19% year-on-year to Rs. 9,562 crore for the H1. The fresh retail health GWP sustained its growth momentum. On the reported 1/n basis, the fresh retail health has grown by 35% year-on-year for the quarter and 36% year-on-year for the half year. The new-to-insurance mix rose to 93% for the quarter from 89% in Quarter 2 FY26, reflecting our continued focus on first-time buyers of health insurance and selecting a more healthier pool. The growth during the quarter was led by both volume and value, with the number of new-to-insurance policies growing over 10% year-on-year and the average sum insured also rising 13% year-on-year. A brief note getting into financial numbers: From this quarter, we have discontinued the practice of recognition of insurance finance charges. The previous periods have also accordingly been restated for comparability. There is no impact of this treatment on profitability metrics such as PAT and underwriting results. Now coming to the underwriting result for the quarter was Rs. 99 crore compared to a loss of Rs. 40 crore in Quarter 2 of last financial year. This is a positive swing of about Rs. 139 crore. For H1 FY27, our underwriting results stood at Rs. 210 crore as against a loss of Rs. 24 crore in H1 of FY26, giving a positive swing of Rs. 234 crore for H1. The underwriting results for H1 FY27 surpassed the full-year FY26 underwriting result of Rs. 198 crore. The Combined Insurance Service Ratio, CISR, improved by 2.9% to 98% in Quarter 2 FY27 and by 2.4% to 97.9% for H1 of FY27. The profit after tax for the quarter increased over threefold to Rs. 265 crore from Rs. 80 crore in the last year same quarter. And the PAT for the half year increased by 57% year-on-year to Rs. 815 crore. To provide the right perspective on profitability insulated from short-term mark-to-market volatility, we report the normalized PAT pegged at a normalized annual investment yield of 8%. Under the normalized framework, our profit after tax for Quarter 2 increased 70% year-on- year to Rs. 390 crore. The profit after tax for H1 increased 56% year-on-year to Rs. 775 crore, with a normalized ROE on annualized basis increasing from 11.2% of last year's H1 FY26 to 15.1% ROE in H1 FY27. On the business side, we continue to build a diversified and granular retail franchise with disciplined and prudent risk selection across geographies, segments, channels, and products that meet our defined ROE threshold. Our Retail Health market share stood at 29% for H1 FY27 and 30% for the quarter. As highlighted earlier, the reported market share continues to be influenced by the share of long-term policies and the consequent 1/n reporting and like-for- like comparability will be restored only by FY28. More fundamentally, our scale reflects our deliberate focus on preferred segments and our conscious avoidance of riskier pools. Our proprietary channels, agency and digital D2C, Page 3 of 18 contributed over 90% of our retail business, giving us greater control over customer selection, quality of sales, and the economics of acquisition. We added 39,000 new agents during H1 FY27, taking our network to 8.7 lakh agents. Our agency productivity improved by 19% year-on-year during H1. The agency continues to deepen penetration where it matters most, with fresh business growth from semi-urban and rural geographies at over 3 times that of metro and urban geographies. Our proprietary digital D2C channel remains the fastest growing, with 137% year-on-year growth in H1, led by younger customers, higher sum insured levels, and rising participation from non-metro and tier 2 markets. Our D2C channel continues to have superior combined ratios. [Showing first 8,000 characters — download PDF for full document]