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Star Health Targets ₹24,000 Crore GWP
Star Health and Allied Insurance Company Ltd. is targeting ₹24,000 crore in Gross Written Premium (GWP) for the current fiscal year, up from ₹20,400 crore in FY26. This expansion is driven by a strategic push into tier 2 and 3 cities, where the company plans to introduce two new affordable health insurance products. The retail health segment remains the primary revenue source, accounting for approximately 96% of its business. Regional GWP in Andhra Pradesh and Telangana saw strong growth, and the company aims to expand its presence there. As of late April 2026, the company's stock traded around ₹525.65, showing a year-to-date increase of about 11.86%.
Sector Growth Supports Ambitions
Star Health operates within India's health insurance sector, projected for significant growth. Overall health insurance premiums are expected to reach ₹3.21–3.24 lakh crore, with double-digit growth anticipated into FY27. Key drivers include rising healthcare costs, increased consumer awareness post-pandemic, and favorable regulatory changes such as GST exemption on certain policies. Star Health holds a substantial market share in retail health insurance. However, its valuation, with a Price-to-Earnings (P/E) ratio between 55.42x and 69.3x, is higher than some peers like ICICI Lombard (approx. 32.6x) and New India Assurance (approx. 13.4x). It is comparable to HDFC Life (approx. 69.0x) and SBI Life (approx. 77.8x).
Challenges in Expansion and Margins
Despite its growth targets, Star Health faces significant challenges. Expanding into tier 2 and 3 cities presents execution hurdles. Customer acquisition in these markets may require higher marketing spending and price-sensitive products, potentially pressuring underwriting margins. Reliance on retail health makes the company vulnerable to rising medical inflation, which impacts loss ratios. While its combined ratio improved to 98.8% in FY26, maintaining this level while launching affordable products in new regions will be critical. Competition is intense, with other insurers and insurtech firms targeting the same smaller city markets. Regulatory changes also demand continuous adaptation. Star Health's earnings per share (EPS) declined to ₹9.47 in FY26 from ₹11.01 in FY25, indicating potential margin pressure.
Path to ₹30,000 Crore GWP
Star Health aims to reach ₹30,000 crore in GWP by FY28. This goal relies on successful expansion into smaller cities and sustained growth in its core retail health segment. The company's strategy prioritizes enhancing customer experience and claims settlement, alongside product innovation. Recent financial results showed improvements in income and underwriting profit for FY26. Management's focus will be on balancing aggressive market share acquisition with prudent risk management and operational efficiency.