Star Health to raise Rs 150 crore this fiscal

CHENNAI: Star Health and Allied Insurance has proposed to raise Rs 150 crore this financial year as part of its plans to augment solvency margin, a top company official said today.

The solvency ratio is the amount by which an insurance company's capital exceeds its projected liabilities. Insurance companies are required to maintain a minimum solvency margin.

"We are going to raise about Rs 150 crore... In all probabilities it may materialise shortly...," Star Health and Allied Insurance Chairman and Managing Director V Jagannathan told reporters here.

He said the current solvency margin was at 1.76 per cent as against the industry's 1.5 per cent. "It will be raised for us to maintain the solvency margin...," he said.

Besides, Jagannathan did not rule out the possibility of getting listed on bourses, saying they would get listed after the guidelines for insurance companies are released by insurance regulator IRDA and SEBI.

"If it (guidelines) enables us to list, we will get listed...", he said.

Jagannathan, who was here to launch two products the --- Star Comprehensive and Star Family Delite -- said this year they are expecting the total insurance premium to reach Rs 1,000 crore.

"Compared to last year, we have set a target of reaching Rs 1,000 crore from the market segment...," he said.

He said the majority of their growth was contributed from family health insurance followed by individual policy.

Stating that the company grew by 49 per cent last year, he said they were very much affected by the loss in bidding to the State health insurance scheme.

"We are very much affected by it... Current policy (issued by United India Insurance) has unlimited covers and gives a wider coverage. We could not be competitive in premium but the other company has got it...," he said.

Detailing about the two products that was launched today, he said the Star Comprehensive comes with no room rent capping, no disease wise limits and includes hospital cash benefit and new born baby cover.

"Star Family Delite covers in-patient hospitalisation expenses. It also covers pre and post hospiltalisation expenses...," he said.

Last year, the company's market segment contributed about Rs 500 crore business, he said, adding this year it is expected to reach Rs 800 crore.