SUMMARY
- Go Digit’s PAT jumped 221% YoY to Rs 89.47 crore in Q2 FY25.
- However, there was a slight sequential decrease in profit by 13.2%.
- Total operating costs for the quarter surged by 13.8% to Rs 2,136.05 crore.
Insurtech firm Go Digit General Insurance experienced a significant increase in its profit after tax (PAT), jumping 221% to Rs 89.47 crore in Q2 FY25 from Rs 27.69 crore in Q2 FY24.
Its overall gross written premium (GWP) also saw a notable rise of 14.2% to Rs 2,368.57 crore in the quarter under review from Rs 2,073.84 crore in Q2 FY24. Additionally, the net written premium increased by 5.8% to Rs 1,927.85 crore from Rs 1,821.61 crore in the same period.
However, there was a slight decrease in profit of 13.2% from Rs 101.34 crore in the previous quarter.
The company’s total assets under management (AUM) at the quarter’s close were Rs 18,502 Cr, rising 17.4% from Rs 15,764 crore in the same quarter last fiscal.
The company reported an additional income of Rs 2,175.49 crore from other sources for the quarter.
Established in 2017 by Kamesh Goyal, Go Digit deploys technology to provide insurance coverage in various sectors, including health, vehicles, travel, and property. It is backed by well-known investors such as Fairfax, Peak XV Partners, A91 Partners, and more.
The firm listed on the stock market on May 23, 2024, at a price per share of Rs 281.
During a presentation to investors, the company disclosed that it sold 0.6 million policies to 6 million clients in the latest quarter, raising its presence in the insurance sector to 3.3%.
Third-party motor premiums remained the primary source of income for Go Digit. Its net premium from motor insurance increased by 10% to reach Rs 1,354.21 crore in the quarter under review, compared to Rs 1,228.65 crore in the same period of the previous year. Go Digit reported that it held 6.2% of the market share in the car insurance domain at the quarter’s close.
The second highest source of premium income was from health insurance, contributing Rs 354.59 crore. Net premium from fire insurance amounted to Rs 29.87 crore, while its income from its marine insurance operation reached Rs 1.19 crore.
Notably, total operating costs for the quarter surged by 13.8% to Rs 2,136.05 crore from Rs 1,876.54 crore in the same quarter of the previous fiscal year.
The company spent Rs 851.15 crore towards covering insurance claims, while it also allocated Rs 483.32 crore for changes in outstanding claims throughout the quarter. This led to an expense of Rs 1,334.47 crore, a 23.6% rise from Rs 1,079.35 crore in Q2 FY24.
Go Digit spent Rs 90.48 crore on employee benefits, marking a 38.6% YoY increase from Rs 65.28 crore in Q2 FY24.
Investment in business expansion, sales, and advertising dropped by 18% YoY to reach Rs 81.27 crore in Q2.
