Go Digit General Insurance has reported strong financial results for the second quarter of fiscal year 2025, delivering solid growth across key metrics. The company recorded a 14% year-on-year (YoY) growth in Gross Written Premium (GWP) and a significant threefold increase in profit after tax (PAT), marking a strong performance for the quarter.
Key Financial Highlights:
- Gross Written Premium (GWP): The GWP for Q2 FY25 stood at ₹2,369 crores, a 14% increase compared to ₹2,074 crores in Q2 FY24. This growth demonstrates the company’s robust performance in expanding its market presence and increasing customer demand.
- Profit After Tax (PAT): The company’s PAT surged to ₹89 crores in Q2 FY25, compared to ₹28 crores in the same period last year, registering an impressive 221.4% YoY growth. This reflects the company’s improved profitability and operational efficiency.
- Premium Retention Ratio: The retention ratio for Q2 FY25 was 81.4%, slightly down from 87.8% in Q2 FY24, indicating a moderate dip in the company’s ability to retain premiums underwritten during the quarter.
- Asset Under Management (AUM): Go Digit’s AUM reached ₹18,502 crores as of September 30, 2024, reflecting a 17.4% growth compared to ₹15,764 crores as of March 31, 2024. The growing AUM signifies the company’s increasing strength in managing its investment portfolio.
- Combined Ratio: The combined ratio for Q2 FY25 increased to 112.2%, up from 108.9% in Q2 FY24. This rise suggests that the company’s claims and expenses outpaced its premiums, reflecting increased operating challenges during the quarter.
Operational Metrics:
- Loss Ratio: The loss ratio for the quarter rose to 70.6%, compared to 65.1% in the same quarter last year, indicating a higher proportion of claims paid during the period.
- Expense Ratio: The expense ratio stood at 41.6%, a slight increase from 43.8% in Q2 FY24, highlighting a better management of operating expenses in relation to premiums written.
Go Digit General Insurance has demonstrated a strong financial performance in Q2 FY25, with substantial growth in both GWP and profit after tax. Despite a slight decline in retention ratio and an increase in the combined ratio, the company’s ability to maintain profitability and grow its assets under management indicates a positive outlook for the remainder of the fiscal year.
