Go Digit General Insurance reports a Rs 118 crore profit, up 175% due to robust business expansion.Go Digit General Insurance reports a Rs 118 crore profit, up 175% due to robust business expansion.
Strong growth in insurance premium collection helped Go Digit General Insurance report a quarterly net profit of Rs 118 crore, up 175% from the previous year.
In the December quarter, the Bengaluru-based new-age general insurance company recorded gross written premiums of Rs 2,676 crore, which is an increase from Rs 2,427 crore in the same period last year. In the same quarter last year, it reported a net profit of Rs 42.8 crore.
The insurance company, which is backed by Fairfax, announced in a filing with the stock exchanges that it has promoted Atul Mehta to the role of country head for retail geographies and important partnerships. In his previous position, Mehta served as the key relationships group's chief business officer.
In the December quarter, commissions and brokerages paid to distribution partners totaled approximately Rs 543 crore. The quarter's total revenue was Rs 2,371 crore.
In addition to collecting premiums from clients, an insurance company also pays premiums to reinsurance firms. The interest it receives from its investments also contributes to its income.
In comparison to the same period last year, Go Digit reported total expenses of Rs 2,308 crore for the December quarter, up from Rs 2,241 crore.
The solvency ratio of the general insurance company remained at 2.2.
At the end of 2024, the company had 69,527 partners and Rs 18,939 crore in total assets under management.
Even though health and travel insurance accounted for 19% of total business in 2024, motor insurance remained the company's mainstay, collecting over 60% of all premiums.
The company stated that 59% of its policies are now issued through direct technology integration with its partners, demonstrating its focus on technology for insurance distribution, even though Go Digit still generates a significant portion of its business through its physical agent network.
Go Digit's stock fell 1.85% on the BSE on Wednesday, closing at Rs 286.2.
