Go Digit General Insurance (GODIGIT) Q4 19/20 earnings summary

Executive summary

• FY20 gross written premium rose to ₹2,252 crore from ₹1,205 crore; market share reached 1.16% as industry premiums grew 11.5%.

• Net loss narrowed to ₹175.25 crore from ₹270.64 crore; underwriting losses also improved, while the combined ratio remained above 100%.

• Claims operations emphasized automated and self-service processes; more than 35,000 claims were closed through self-inspection during the year.

Financial highlights

• Gross written premium was ₹2,252.35 crore vs ₹1,204.98 crore in FY19; net earned premium was ₹1,241.35 crore vs ₹499.98 crore.

• Net loss after tax was ₹175.25 crore vs ₹270.64 crore; basic and diluted EPS were both -₹2.41 vs -₹5.04 in FY19.

• Operating loss was ₹226.95 crore vs ₹299.98 crore; net investment income was ₹123.49 crore vs ₹25.87 crore.

• Net worth was ₹1,122.34 crore, up from ₹479.37 crore; assets under management, including cash, were ₹3,549.81 crore vs ₹1,565.37 crore.

Outlook and guidance

• Management assessed that COVID-19 had no adverse impact on the ability to continue as a going concern; impact on FY20 financial results was not material.

• The business model prioritizes simple, customizable products and digital claims processes; stated average settlement times ranged from 4 days for travel to 23 days for commercial vehicles.