Go Digit General Insurance (GODIGIT) Q3 24/25 earnings summary

Executive summary

• Gross premium for Q3 FY25 reached ₹2,677 crore, with nine-month gross premium at ₹7,706 crore, and total customers at 6.2 crore.

• Profit after tax for Q3 FY25 was ₹119 crore, up from ₹43 crore in Q3 FY24; nine-month profit after tax was ₹309 crore, more than double the prior year.

• Assets under management stood at ₹18,939 crore as of December 31, 2024, with net worth crossing ₹3,924 crore and a solvency ratio of 2.22.

• Customer base expanded to 6.2 crore, with 0.9 crore policies sold in the period and 69,527 claims settled since inception.

• Unaudited financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on January 22, 2025.

Financial highlights

• Combined ratio improved to 108.1% in Q3 FY25 from 110.3% in Q3 FY24; expense ratio was 35.2%.

• Loss ratio improved to 72% from 74.5% sequentially; investment yield (excluding capital gains) for Q3 was 1.83%.

• Return on Average Equity (IGAAP) for 9M FY25 was 9.6%, up from 5.4% in 9M FY24.

• Net retention ratio was 83.8% in Q3 FY25.

• No significant capital gains contributed to profit; profitability is driven by core insurance operations.

Outlook and guidance

• Expectation of continued growth above industry rates, supported by advanced technology and predictive underwriting.

• No aggressive expansion planned in retail health due to cautious outlook on loss ratios and regulatory environment.

• Reserve releases expected to be stable, with less volatility compared to previous years.

• Ongoing monitoring of regulatory changes, especially regarding EOM and accounting standards.

• Results for the quarter are not indicative of full-year performance due to industry seasonality.