Star Health founder V Jagannathan resigns from the Board

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Venkatasamy Jaganathan (79), founder of the independent health insurance company Star Health and Allied Insurance Company Ltd., has resigned. , from the company’s board of directors.

“We would like to inform you that Mr. Venkatasamy Jagannathan, with an email dated 10th June 2023, has tendered his resignation from the Board of Directors of the Company with immediate effect, i.e. effective 10th June 2023,” the company said in a statement to the stock exchange.

On 28 April 2023, the company said: “Jaganathan, Chairman and Chief Executive Officer (CEO) of Star Health and Allied Insurance Company Ltd., has relinquished his position as Chief Executive Officer and will continue as Non-Executive Director and Non-Executive Chairman of the Board of Directors, which will be effective Effective as of the end of business hours on May 4, 2023.”

However, with his resignation, Jagannathan resigned from the board positions as well. It was not possible to ascertain the reason for his sudden resignation.

Jagannathan is credited with building Star Health into a strong health insurance brand and also making it a profitable venture at a time when health insurance companies are struggling to turn a profit.

A veteran of the insurance industry with more than five decades of experience, Jaganathan served as Chairman and Managing Director of the General Insurance Company at PSU, prior to founding Star Health.

In FY23, Star Health achieved underwriting profit of Rs.204 crore with a combined ratio of 95.3 per cent and gross profit after tax of Rs.619 crore, the highest in its history. It has a strong presence in the retail health sector, with a market share of around 34 percent. It has an agency power of over 6.25 lakh.

During the first two months of this financial year, Star Health reported total direct premium written of ₹1,821 crore and an acquired market share of 4.16 per cent in the total non-life space. The market share of an independent health insurance company is higher than that of many non-performing life companies.