Go Digit General Insurance (GODIGIT) Q2 24/25 earnings summary

Executive summary

• Gross Written Premium (GWP) for H1 FY2025 reached ₹5,029 crore, up 18% year-over-year; Q2 FY2025 GWP was ₹2,369 crore, a 14% increase.

• Profit after tax for Q2 FY2025 was ₹89 crore, more than tripling from ₹28 crore in Q2 FY2024.

• Market share in motor insurance at 6.2%, overall market share at 3.3%; AUM surpassed ₹18,500 crore.

• Customer base reached 6 crore since inception, with 0.6 crore policies sold in H1 FY2025.

• Customer satisfaction remains high; annual policy issuance remains low.

Financial highlights

• Combined ratio increased to 112.2% in Q2 FY2025 from 108.9% in Q2 FY2024, indicating higher claims and expenses.

• Loss ratio for Q2 FY2025 was 70.6%, up from 65.1% in Q2 FY2024; excluding flood claims, loss ratio would be 68.8%.

• Return on Average Equity (IGAAP) for H1 FY2025 was 6.0% (not annualised), up from 3.6% in H1 FY2024.

• Solvency ratio improved to 2.18 as of September 30, 2024, well above the 1.5% regulatory minimum.

• Investment yield improved to 7.3% in H1 FY2025 from 6.2% in H1 FY2024.

Outlook and guidance

• Confident in achieving the three-year EOM glide path; expense ratios expected to remain on track.

• Continued focus on technology-driven growth, with 64.1% of policies issued via APIs in FY2025.

• Management expects in-house AI-ML systems to drive future efficiency and support expansion.

• No formal guidance on reserve releases, but trend expected to continue barring unforeseen claims.

• Quarterly results are not indicative of full-year performance due to industry seasonality.