Title-Relationship of Star Health and Allied Insurance Co. Ltd with Nifty Fifty to calculate Beta
Author-Simran .A. Singh
Introduction
Star Health & Allied Insurance Co. Ltd. is an Indian health insurance company headquartered in Chennai. They began their operations in 2006 as India’s first standalone Health Insurance provider. They offer innovative products in the health, personal accident and overseas & domestic travel insurance. With meticulously crafted insurance policies, Star Health addresses the unique health needs of people. Star Health places a huge emphasis on customer experience and service. They have 24×7 multilingual call centre support and dedicated claims assistance.
Objective-To calculate Beta of Star Health and Allied Insurance Co. Ltd and see its significance.
Literature Review
1.FINANCIAL PERFORMANCE ANALYSIS OF STAR HEALTH AND ALLIED INSURANCE COMPANY LIMITED IN INDIA
Insurance is a monetarist tool specifically designed to reduce the financial impact of unanticipated events and create financial security. The health insurance companies in India have rapidly become one of the most important sectors in the country that hovers around 10% in density. Financial performance analysis is the process of identifying the financial strengths and weaknesses of the company establishing the relationship between the items of balance sheet and profit and loss account. It is used to analyse whether an entity is stable, solvent, liquid, or profitable enough to permit a monetary investment. So, Star Health and Allied Insurance Company Ltd. financial ratio analysis has been taken to know its solvency, liquidity, profitability performance. This covid-19 pandemic provides both
threats and opportunities to the company. Hence it is concluded, the
success of the company highly depended on premium income, speedy settlement of claims, innovative products and services, attractive pricing and sales promotion.
2.Star Health Care Insurance Importance In The Global Market
Star Health and Allied Insurance Co Ltd is an health insurance provider with its headquarters in Chennai. The organization offers direct services as well as through a variety of channels such as agents, brokers, and the internet for health, personal accident, and international travel insurance.Star Health is a leader in bancassurance and has a history of working with numerous banks. Currently, Star Health employs more than 12800 people throughout its 640 branch offices in India.
Data Collection-The data for Nifty and Eqity of Star Health and Allied Insurance Co. Ltd has been downloaded from nseindia.com and finance.yahoo.com from 1st November ,2022 to 31st October ,2023.Data was manipulated to calculate the Friday Closing Price.
Data Analysis
Star Health and Allied Insurance Co. Ltd Share= 54.344+0.88nifty
n= 47, R sqaure= 0.88, F= 36.274
The above equation shows the relationship of Star Health with nifty
If nifty rises by 1 unit, Star Health will rise 0.88 unit
t- stat for b is 19.04 and the p value is 0 indicates that the coefficient for nifty is statistically significant, meaning nifty does impact star health.
R sqaure is 0.88, meaning 88% of Star health share is explained by nifty meaning 12% depends upon other things like fundamental F= 36.274 and p value is less than 0.05 so the model is 5 % level.
Conclusion:As beta is 0.88 is less than 1, so its good option for long term investment.
References:
[1]Non-life Insurers”, UNNAYAN: International Bulletin of Management .
[2] B.Sudha, “Reinsurance –A mechanism in mitigating risk”, International Journal of advance and innovative .
[3] B.Sudha, “Insurance Penetration and Density in India”, Emerging Trends in Indian Insurance Sector.
[4] M. Surya, B. Sudha, T. Priyanka, “FDI in Indian Non -Life Insurance Sector: Boost Market Potential”,