Shares of Go Digit General Insurance climbed 6.5% to reach a peak of Rs 305.05 on the BSE after the company announced a huge 177% increase in net profit, reaching Rs 119 crore for the December quarter. This impressive growth was thanks to a strong rise in the money they collected from insurance premiums.
In this quarter, the company earned Rs 2,676 crore through insurance premiums, compared to Rs 2,427 crore last year. Last year, during this same time, they made a net profit of Rs 42.8 crore.
In a statement to stock markets, Go Digit announced that Atul Mehta has been promoted to lead the retail division and manage key partnerships. Previously, he was the chief business officer in charge of important customer relationships.
During the December quarter, commissions and fees paid to partners reached Rs 543 crore. The total income for this quarter was Rs 2,371 crore. Go Digit collects premiums from customers and also pays premiums to other insurance companies. Additionally, they make money from the interest earned on their investments.
Go Digit’s expenses for the December quarter were Rs 2,308 crore, up from Rs 2,241 crore the year before. The company’s financial health, indicated by its solvency ratio, remained strong at 2.2.
At the end of 2024, Go Digit’s partner network grew to 69,527, and their total assets reached Rs 18,939 crore. They reported that health and travel insurance now make up 19% of their business, but motor insurance is still their biggest part, making up over 60% of total premiums.
While Go Digit still relies on its physical agent network, they noted that 59% of their policies are now sold through direct technology partnerships, which shows their focus on using technology to sell insurance.
Despite the good news, Go Digit shares fell 1.85% to close at Rs 286.2 on Wednesday, even as the Sensex rose by 0.75%. The stock price has dropped 18% over the last three months and 17% over the last six months, with a market value of Rs 26,394 crore.
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