Go Digit General Insurance Limited reported its Q3 results, showcasing strong growth and profitability. Premium income reached ₹2,500 crore, with an overall GDPI growth of 20.9%. The company achieved a 37% jump in profit before tax to ₹163 crore. The combined ratio under IFRS basis improved to 105%. AUM increased to ₹22,500 crores, reflecting robust investment performance. The company has now eliminated accumulated losses.
Financial Performance
Go Digit General Insurance Limited announced its financial results for the third quarter. The company’s premium income stood at ₹2,500 crore. GDPI grew by 20.9% to ₹2,557 crore, compared to ₹2,115 crore in the same quarter last year. There was a 37% increase in profit before tax, reaching ₹163 crore, up from ₹119 crore. Profit after tax reached ₹140 crore, and the company no longer has accumulated losses.
Key Ratios and Metrics
The company reported a combined ratio of 105% under IFRS basis, an improvement from 106.2% in the same quarter of the previous year. For the nine-month period, the combined ratio improved to 105.6% from 106.9%. The pre-tax Deferred Acquisition Cost (DAC) is approximately ₹2,403 crore. The solvency ratio stands at 230%, well above the required 150%.
Business Segments
The company’s two-wheeler business grew by 47% in Q3, with collected premium at ₹668 crore compared to ₹456 crore. The increase in two-wheeler premium impacted IGAAP by ₹84 crore in the quarter, with a 3.9% impact on the COR. There was a decrease of 31% in health, travel, and PA segments due to the company’s decision not to renew a government health business due to pricing concerns. Motor business touched 66% of the total business in Q3 compared to 60% last year, while industry’s mix remained at 36%.
Investments and AUM
Assets Under Management (AUM) have increased to ₹22,500 crore, an increase of approximately ₹2,800 crore, representing a growth of 18.8%. The overall yield on AUM is about 1.9% for the quarter. Unrealized gains are reported at ₹686 crore, with ₹403 crore from the equity portfolio and ₹283 crore from other assets.
Loss Ratios
Most loss ratios are in line with expectations, but the motor OD loss ratio has increased to 75.6%. Some pricing corrections have been implemented and are expected to stabilize the loss ratio in the coming quarters. Overall combined ratio is profitable across each line of business.
IFRS Earnings
The IFRS net worth is reported at ₹7,800 crore, while the net worth under Indian IGAAP is about ₹4,400 crore. The company has 75%-80% more capital in IFRS, resulting in a lower ROE on this base. Solvency is calculated on the IGAAP net worth.
Source: BSE
