Go Digit's Q3 net profit increased by 18% to Rs 140 crore due to premium growth

Go Digit General Insurance Reports 18% YoY Rise in Q3 Profit on Premium Growth

New-age insurer Go Digit General Insurance on Thursday reported an 18% year-on-year increase 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 in the year-ago period, according to a stock exchange filing.

Gross written premium (GWP) — the total premium collected before deducting expenses — rose to Rs 2,909 crore from Rs 2,676 crore in the same quarter last year.

Motor insurance remained the company’s largest business segment, contributing Rs 1,511.5 crore in net premiums. This was followed by health, fire, corporate, marine, crop, and other segments, the company said. Within the motor insurance portfolio, private cars accounted for 47%, while two-wheelers made up 34%, the highest share among large general insurers, founder Kamesh Goyal said during the company’s earnings call.

Goyal added that the company’s product mix continues to be shaped by market conditions rather than predefined targets. “We don’t drive ourselves from an ideal product mix or channel mix,” he said.

During the quarter, total income rose 5% to Rs 2,497.6 crore, while total expenses increased 3% to Rs 2,386.1 crore. Claims paid during the period surged to Rs 1,310.6 crore, compared with Rs 948.7 crore a year earlier.

The company’s net retention ratio declined to 73.8% from 83.8% a year ago, reflecting a higher share of risk ceded to reinsurers.

Shares of Go Digit closed 3.55% higher at Rs 323.9 on the BSE, giving the company a market capitalisation of Rs 29,937.6 crore.