Go Digit Q3 net profit rises 18% to Rs 140 crore on premium growth
New-age insurance startup Go Digit General Insurance reported an 18% year-on-year (YoY) rise in net profit for the December quarter, driven by growth in gross written premiums.
The Fairfax-backed company posted a net profit of Rs 140 crore for the third quarter of the current financial year, compared with Rs 118.5 crore a year earlier, according to a stock exchange filing.
Gross written premium — the total premium collected before deducting expenses — increased to Rs 2,909 crore from Rs 2,676 crore in the same period last year.
Motor insurance remained the company’s largest segment, contributing Rs 1,511.5 crore in net premiums, followed by health, fire, corporate, marine, crop, and other segments, the company said in its filing.
Within motor, private cars accounted for 47% of the portfolio, while two-wheelers made up 34%, the highest among large general insurers, founder Kamesh Goyal said during the company’s quarterly earnings call.
However, Goyal said the company’s business mix continues to be driven by market dynamics rather than fixed targets. “We don’t drive ourselves from an ideal product mix or channel mix,” Goyal said.
The company’s total income during the quarter rose 5% to Rs 2,497.6 crore, while total expenses were up 3% at Rs 2,386.1 crore.
Go Digit paid out Rs 1,310.6 crore in claims during the quarter, compared with Rs 948.7 crore in the year-ago period.
The company’s net retention ratio declined to 73.8% from 83.8% a year earlier, indicating a higher proportion of risk being ceded to reinsurers.
Shares of Go Digit closed up 3.55% at Rs 323.9 on the BSE with a market capitalisation of Rs 29,937.6 crore.
The Fairfax-backed company posted a net profit of Rs 140 crore for the third quarter of the current financial year, compared with Rs 118.5 crore a year earlier, according to a stock exchange filing.
Gross written premium — the total premium collected before deducting expenses — increased to Rs 2,909 crore from Rs 2,676 crore in the same period last year.
Motor insurance remained the company’s largest segment, contributing Rs 1,511.5 crore in net premiums, followed by health, fire, corporate, marine, crop, and other segments, the company said in its filing.
Within motor, private cars accounted for 47% of the portfolio, while two-wheelers made up 34%, the highest among large general insurers, founder Kamesh Goyal said during the company’s quarterly earnings call.
However, Goyal said the company’s business mix continues to be driven by market dynamics rather than fixed targets. “We don’t drive ourselves from an ideal product mix or channel mix,” Goyal said.
The company’s total income during the quarter rose 5% to Rs 2,497.6 crore, while total expenses were up 3% at Rs 2,386.1 crore.
Go Digit paid out Rs 1,310.6 crore in claims during the quarter, compared with Rs 948.7 crore in the year-ago period.
The company’s net retention ratio declined to 73.8% from 83.8% a year earlier, indicating a higher proportion of risk being ceded to reinsurers.
Shares of Go Digit closed up 3.55% at Rs 323.9 on the BSE with a market capitalisation of Rs 29,937.6 crore.
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