Insurtech firm Go Digit reports 74% growth in profit after tax to Rs 101 crore in Q1FY25

Insurtech startup Go Digit General Insurance has reported a remarkable 74% increase in profit after tax (PAT) for the first quarter of the fiscal year 2024-25 (FY25), reaching Rs 101 crore.

This is a significant increase from Rs 58 crore in the same period last year. Overall, in FY24, the company reported a profit after tax of Rs 182 crore, a substantial rise from FY23's profit of Rs 36 crore

Gross written premiums on the rise

Go Digit’s total gross written premium (GWP) saw a notable jump of 22.2% year-on-year, reaching Rs 2,660 crore in the quarter ended June 2024.

This increase from Rs 2,178 crore in Q1 FY24 was driven largely by growth in third-party motor, health, travel, and personal accident premiums.

Specifically, third-party motor premiums were the largest contributor, accounting for 36% of the GWP, followed by health, travel, and personal accident premiums at 22%.

Financial performance and income growth

The company's net earned premium rose to Rs 1,824 crore during the reviewed period, up from Rs 1,475 crore in the previous year.

Additionally, Go Digit’s total income, which includes net earned premium, income from investments, and other sources, increased by more than 24% year-on-year to Rs 2,076 crore. Despite this growth, the premium retention ratio slightly declined to 76.2% from 76.9% a year ago. 

Expenses and claims management

Go Digit’s total operating expenses grew by 21% to Rs 1,993 crore in Q1 FY25, up from Rs 1,642 crore the previous year. The company’s expenditure on insurance claims during the quarter was Rs 118.1 crore, a notable decrease from Rs 544.8 crore a year ago.

Additionally, employee costs rose to Rs 88.37 crore from Rs 68.28 crore in the same period last year.

However, spending on branding, advertisement, and publicity significantly dropped by more than 66% year-on-year to Rs 50.75 crore.

Go Digit's market presence

Founded in 2017 by Kamesh Goyal, Go Digit leverages technology to offer insurance policies across various verticals such as health, motor vehicle, travel, and property.

The company went public on May 23 and announced key leadership appointments to strengthen its board.

Mahendra Kumar Garg, former chairman and managing director of United India Insurance Company, has been appointed as a non-executive independent director.

Fairfax Holdings’ former CEO Gopalakrishnan Soundarajan has also joined as a non-executive director.

As of June 2024, Go Digit's total customer base stood at 5.3 crore, with assets under management (AUM) reaching Rs 17,773 crore, up from Rs 15,764 crore at the end of June 2023.