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Below is quote on Star Health and Allied Insurance Company Ltd IPO By Mr. Amarjeet Maurya - AVP - Mid Caps, Angel One Ltd

Incorporated in 2006, Star Health and Allied Insurance Company Ltd (Star Health) is one of the largest private health insurers in India with a market share of 15.8% in Fiscal 2021. The company primarily focuses on the retail health market segment. It offers a range of flexible and comprehensive coverage options for retail health, group health, personal accident, and overseas travel, accounting for 87.9%, 10.5%, 1.6%, and 0.01%, respectively, of the total Gross Written Premium (GWP) in Fiscal 2021. As of September 30, 2021, its network distribution includes 779 health insurance branches across 25 states and 5 union territories in India. Star Health has also built one of the largest health insurance hospital networks in India with more than 11,778 hospitals.

Outlook & Valuation:

Star Health stands out among other standalone health insurers (SAHI) in terms of size, strong growth rates (32% Gross Written Premium CAGR over FY18-21) and better operational performance which is reflected in pre-Covid numbers for the company (~93% combined ratio). The valuations commanded by Star Health at ~5.5x FY21 Mcap/GWP, are in-line with recent deals in the SAHI space and appears fair considering its positioning. Hence, we recommend SUBSCRIBE from a long-term perspective only.