%20(1).jpg)
Care Health Insurance continued to grow in FY26, but the numbers tell a more mixed story than just higher premiums. The company expanded its business and strengthened its scale, while some key financial numbers moved in the opposite direction. So, how healthy is the business behind the growth? Let’s look at the FY26 Annual Report and see what the numbers mean for investors.
Care Health FY26: Key Financial Numbers
Particular (in Rs. Cr.) | FY25 | FY26 | Change |
Gross Written Premium | 8,562 | 10,416 | 22% |
Gross Direct Premium | 8,318 | 10,031 | 21% |
Net Written Premium | 6,733 | 7,728 | 15% |
Net Earned Premium | 6,347 | 7,256 | 14% |
Total Income | 6,715 | 7,769 | 16% |
Net Incurred Claims | 4,096 | 5,051 | 23% |
Commission | 1,357 | 1,483 | 9% |
Operating Expenses | 1,222 | 1,387 | 14% |
PBT | 208 | 17.81 | -91% |
PAT | 155 | 12.16 | -92% |
Basic EPS | 1.60 | 0.12 | -93% |
Net Worth | 2,331 | 2,666 | 14% |
Sources: Care Health Annual Report FY26
Revenue and Premium Growth
GWP increased from Rs. 8,562 Cr to Rs. 10,416 Cr, up about 22%. Gross Direct Premium rose 21% to Rs. 10,031 Cr. At the net level, Net Written Premium grew 15% to Rs. 7,728 Cr, while Net Earned Premium increased 14% to Rs. 7,256 Cr. Total income of Care Health also rose from Rs. 6,715 Cr to Rs. 7,769 Cr, up about 16%. Premium income is included in this along with investment and other income. Overall, growth can be seen in the Care Health business in FY26.
Underwriting Performance Is the Main Concern
In FY26, the company’s underwriting performance was the biggest concern. Care Health reported an underwriting loss of Rs.664 Cr. Its underwriting balance ratio also weakened to -9% from -5%. The combined ratio increased to 107% from 103%. It could mean that earnings from premiums could be lower, whereas spending more on claims and other insurance costs.
Profit Fell Sharply
Even though premiums and total income increased, profit fell sharply in FY26. Profit Before Tax fell from Rs.208 Cr to Rs.17.81 Cr. Profit After Tax fell from Rs.155 Cr to Rs.12.16 Cr, a decline of approximately 92%. Basic EPS also declined sharply from Rs.1.60 to Rs.0.12, while diluted EPS declined from Rs.1.59 to Rs.0.12. This could mean that the earnings generated for shareholders were low in FY26, while the business of Care Health became larger.
Investment Income Supported the Business
Care Health also earns income from its investment portfolio. Income from investments (net) increased from Rs.368 Cr in FY25 to Rs.503 Cr in FY26, according to the Annual Report's operating-results table. The broader Investment & Other Income figure in the Board's financial results presentation was Rs.695 Cr, compared with Rs.542 Cr in FY25.
Insurance companies earn money from both premiums and investments. So, investment income can help when the insurance business is under pressure. However, investors should continue to monitor whether profitability improves through better underwriting performance, rather than relying mainly on investment income.
Expense Increase
Care Health's key insurance costs increased during FY26.
Net Commission: Rs.1,483 Cr, increased from Rs.1,357 Cr, up around 9%
Operating Expenses: Rs.1,387 Cr, rose from Rs.1,222 Cr, up around 14%
Net Incurred Claims: Rs.5,051 Cr, increased from Rs.4,096 Cr, up around 23%
The biggest increase among these was therefore in claims. The claims were the biggest increase among these. Hence, even though premium growth was healthy, the faster increase in claims contributed to the deterioration in underwriting performance.
Balance Sheet Remained Relatively Strong
There were also some positive balance-sheet developments. Care Health's net worth increased 14% from Rs.2,331 Cr to Rs. 2,666 Cr in FY26. The company's solvency ratio remained at 1.68x, compared with 1.68x in FY25. The Annual Report states that this remained above the regulatory requirement of 1.50x. The company also reported book value per share of Rs.26.77, compared with Rs.23.93 in FY25. So while earnings weakened sharply, the balance sheet did not show the same level of deterioration.
Distribution Network Continues to Expand
Care Health continued to increase its distribution reach. The number of agents increased from 4,00,286 to 4,88,124, representing roughly 22% growth. The company also added 14 new branches, taking its network to 277 branches. This expansion can support future premium growth, but investors should ultimately judge the benefit of this expansion through premium growth, claims performance and profitability.
Reinsurance and Retention
Another number to watch is the net retention ratio. It fell from 79% to 74%, while the health segment fell from 78% to 74%. This means the company is passing more premium to reinsurers to manage risk.
What FY26 Really Means for Care Health?
Care Health ended FY26 with strong premium growth, but much weaker profits. The company expanded its business, but higher claims and insurance costs put pressure on earnings. The 107% combined ratio, Rs. 664 Cr underwriting loss and 92% fall in PAT to Rs. 12.16 Cr are the key numbers investors should watch. The positive side could be that net worth increased to Rs. 2,666 Cr, while solvency remained at 1.68x, above the regulatory minimum
Also Read: Care Health Rights Issue. Check Price, Dates & Eligibility
