Stockrabit · Analysts
Questions across 7 calls

Nilesh Kambli

Firm not listed in source transcripts

Star Health and Allied Insurance Company Limited

Star Health and Allied Insurance Company Limited CC-Feb26.pdf · 2026-01-29
So, Prayesh, when you talk about commission ratio, what you are looking at IGAAP numbers, the gross commission to GWP. So, if you see, for quarter two, it is 17.1% and for quarter three also, it is 17% . So, it is consistent. You know, the reduction that we had done on the senior citizen that is playing out, vis-à-vis which is getting offset with the long-term business that we are writing. Long-term business, a large part of it still is on 1/N basis. So, it does not impact the commission ratios.
So, Nischint, on the IFRS side the fresh growth that we had in the current quarter had some impact in terms of the ratio. So, it will keep on normalizing as the growth normalizes.
Star Health and Allied Insurance Company Limited CC-Nov25.pdf · 2025-10-29
So, on the GST, to begin with we see that it's an overall positive impact for us. The multiple impacts are intermediary, GST input tax credit, which is not available. So, based on our interactions with the regulator there is an unsaid direction that the intermediary cost needs to be controlled to achieve the EOM at an industry level. So, from 1 st of October, we have decided that intermediary commission will be inclusive of GST. So, on the books of the Company, there will be no impact. In terms of pharmacy, the GST has reduced from 12% to 5% on life -saving drugs from 18% to 0%. We see this as a huge benefit. We have started our interactions with healthcare providers and we see some benefits that will flow through. On the Opex, the ITC is not available, and that is something which we are working on. But the benefits of pharmacy cost should offset the Opex ITC, which is not available. The other benefits we see is the persistence improvement on our existing portfolio and we see some early green shoots for October. The new business as well has now become much more affordable, and we see some good tailwinds coming for new business as well. On the third question on the gap between IGAAP and IFRS, you are right with the LTT business and some of the good agents we have decided to pay on n basis. The RI commission treaty which we had last year, we don't have the voluntary quota share treaty because we have taken all our decisions on IFRS basis. The investment portfolio also, last year it was largely focused on fixed income. Now, we have an 18 % equity and ETF book versus last year and we are focused on long-term returns. So, all these three factors, we see that the gap between IGAAP and IFRS will continue to increase along with the growth in business. IGAAP all the costs are upfront whereas IFRS, it is deferred over the policy period. So, yes, last year the gap will increase.
On the GST point, one size fits all question that we've asked. I think the approach is to pass on the ITC which is not availa ble now equitably. I know you cannot create any distinction across various intermediaries. So, that's the standard approach.
Star Health and Allied Insurance Company Limited CC-Jun25.pdf · 2025-07-30
Yes, for long-term treaty, basically, now the reporting is on 1-by-N basis, we have not reviewed the long-term treaty, but here again, I would like to reiterate that th is is where IFRS becomes important because with 1-by-N reporting, the last results are not comparable to the current year. That is the reason we have moved to IFRS basis where both the commission paid, and the reinsurance commissions are based on the policy period basis. All the decisions that we are taking are based on IFRS financials.
Correct.
Star Health and Allied Insurance Company Limited CC-Sep24.pdf · 2024-10-30
In terms of long -term accounting, it will be effective 1st of October . What will happen is the long-term policy related premium will be reported on a yearly basis. So, if it's a three -year policy, only one year GWP will be reported, one year NWP will be reported. For us the impact is NEP since we are on 1x365 basis, there is no change in the on-premium. What will happen is because the net return premium will reduce, it will have an impact on the expense ratio, the reported expense ratio while there will be no impact on the underwriting profits to be reported going forward. We believe in the industry, it will have some impact in the way things are done in terms of long-term policies.
It's around 4% to 5%.
Star Health and Allied Insurance Company Limited CC-Dec23.pdf · 2024-01-31
You are right, the full benefit of price increase will come by 30th April, with Q4 being the biggest quarter, the earned premium will improve in FY25. That is why we are saying that we will ensure that the loss ratio keeps on improving as we keep on moving forward along with the price rise and the various initiatives that we have taken . I n terms of Group business it is a combination of SME as well as Banca group business, which is very efficient when it comes to loss ratios and that should also help us in terms of overall profitability.
We do not want to comment on the guidance, but yes, we see that there will be improvement as we keep on moving forward with the various initiatives that we have taken.
Star Health and Allied Insurance Company Limited CC-Sep23.pdf · 2023-10-31
Yes, in terms of value and volume growth, the value growth is roughly 65% and the volume growth is around 35% and as mentioned, the loss ratio in second quarter was mainly impacted because of the epidemics, it has nothing to do wit h the quality of the portfolio, the impact of epidemic was severe. The impact of dengue was also severe, which led to higher length for some of our customers that we have seen, so it's mainly on account of the medica l cases that loss ratio is higher.
See the price hike is effective 1st May 2023 and it's only five months , the earned premium is over a 12-month period and there are still seven months left for the portfolio to be re-priced on the renewal piece. While we have taken the price hike, the impac t in the earned premium is still only for five months of portfolio, it will play out over the next 12 to 18 months.