“…we wish to inform you that Venkatasamy Jagannathan vide e-mail dated June 10, 2023 has tendered his resignation from the Board of the Company with immediate effect from June 10, 2023,” Star Health and Allied Insurance Company Ltd said in a BSE filing on Saturday.
Jagannathan, after attaining superannuation from the United India Insurance as its Chairman and Managing Director, founded Star Health and Allied Insurance with the backing of Dubai-based ETA Group.
In an interaction with PTI about confirming his resignation, Jagannathan said: “I was with Star Health and Allied Insurance and I became its Executive Chairman. Then, I became the non-executive Chairman and handed over the executive functions to my juniors.”
“Now, I have also resigned from the role of non-executive Chairman,” he said.
“I always believe that every beginning has an end and every end has a beginning. God willing, I am looking forward to start something in the next two months, it may be in any industry, something that is close to my heart…,” he said and declined to elaborate further. Asked about his journey in Star Health, he said: “We started with just 12 people, rented premises with Rs 30,000. Star Health is now valued at more than Rs 30,000 crore,” he said. “The journey I started as an insurance man 53 years ago, I gave record profits last year. My (Star Health) profit was the highest in FY 2022-23,” he pointed out.
Star Health and Allied Insurance reported Rs 102 crore net profit for the fourth quarter ending March 31, 2023. The standalone health insurance had booked a loss of Rs 82 crore in the January-March quarter of the last financial year. For the entire 2022-23, profit after tax stood at Rs 619 crore as against a loss of Rs 1,041 crore in FY22.
“I enjoyed (Dubai-based ETA Group) ETA’s full confidence. They invested capital… Covid years were strenuous on the company. I did not want to step down during the peak of a pandemic. The fiscal ended March 2023 was the best year of Star financially,” he said.
Asked whether there was something yet to fulfil during his career at Star Health, Jagannathan said: “At every place, I have done my best. From raising the market cap to Rs 100 crore at the starting (of Star Health) and taking it to Rs 30,000 crore. I have full satisfaction of what I did in Star Health.”
On his message to his juniors and other industry colleagues, he said, “Age should never deter you from stopping your work. And if you do anything with determination, you will succeed. This is my message to everyone.”
According to company’s FY 2021-22 annual report, Star Health is present in 26 states and four Union territories. The company’s distribution network is supported by 807 pan-India branches. Nearly 39 per cent of the company’s revenues were contributed from South India, 23 per cent from western parts of the country, 30 per cent from north India and 8 per cent from east India as of March 31, 2022.
