Synopsis
Motor insurance continued to be the company’s largest segment, followed by health, fire, corporate, marine, and other lines of business. Claims paid during the quarter rose to Rs 1,098.2 crore from Rs 851.1 crore in the same period last year. Meanwhile, the solvency ratio improved to 2.26 from 2.18 a year ago, indicating a stronger capital position.
Go Digit General Insurance reported a 31% year-on-year (YoY) rise in net profit for the September quarter, driven by strong growth in gross written premiums.
The Fairfax-backed new-age insurer, which listed on the bourses in May last year, posted a net profit of Rs 116.5 crore for the quarter ended September 30, compared with Rs 89.4 crore a year earlier, according to a stock exchange filing.
Gross written premium (GWP) — the total premium collected before deducting expenses — increased 12.6% YoY to Rs 2,667.4 crore.
Total income rose 10.7% to Rs 2,408.3 crore, while total expenses were up 9.2% at Rs 2,334.3 crore. Among its major expenses, employees’ remuneration and welfare expenses rose to Rs 91.5 crore from Rs 90.4 crore.
“Our overall market share is 3.4%, and motor insurance is at 6.5%. The product portfolio continues to be good. Also, our AUM has now increased to Rs 21,345 crore, and customer satisfaction continues to be good,” founder Kamesh Goyal said on the quarterly earnings call.
Motor insurance remained the company’s largest segment, contributing Rs 1,481.8 crore in net premiums, followed by health, fire, corporate, marine, and other segments, the company said in its filing.
The insurer’s net retention ratio fell to 79.1% from 81.4% a year earlier, indicating a higher proportion of risk ceded to reinsurers.
Claims paid during the quarter increased to Rs 1,098.2 crore from Rs 851.1 crore a year earlier. The solvency ratio improved to 2.26 from 2.18 in the year-ago period, reflecting a stronger capital position.
Shares of Go Digit closed 2.25% higher at Rs 360.7 on the BSE on Tuesday. The results were announced after market hours.
Source: www.economictimes.indiatimes.com