Go Digit General Insurance shares rally 9% after strong Q3; details here

Go Digit General Insurance share price jumped 8.66 per cent at Rs 311 a piece on the BSE in Thursday’s intraday trade. This came after Go Digit reported a significant 74.1 per cent year-on-year (Y-o-Y) increase in net profit for the third quarter ending December 31, 2024 (Q3FY25). 

 

The company’s net profit rose to Rs 118.5 crore, up from Rs 43 crore in the corresponding quarter of the previous year. During Q3 FY25, the insurer achieved a 10.2 per cent Y-o-Y growth in its gross written premium (GWP), reaching Rs 2,677 crore compared to Rs 2,428 crore in the same quarter last year.  

 

When adjusted for the accounting change to the 1/n basis for long-term premium effective October 1, 2024, the GWP for Q3 FY25 would have been Rs 2,738 crore, reflecting an increased growth rate of 12.8 per cent. 

 

However, the premium retention ratio declined to 83.8 per cent in Q3 FY25 from 87.9 per cent in the prior-year period. 

 

The company’s assets under management (AUM) displayed strong growth, rising 20.1 per cent to Rs 18,939 crore as of December 31, 2024, compared to Rs 15,764 crore as of March 31, 2024.  

 

Operational performance also improved, with the combined ratio decreasing to 108.1 per cent in Q3FY25 from 110.3 per cent in the same period of FY24. Excluding the impact of the 1/n basis adjustment, the combined ratio stood at 107.2 per cent, highlighting ongoing efforts in cost management and operational efficiency.

 

On the equities front, Go Digit General Insurance share price has underperformed the market, falling 9.7 per cent in the last six months. In comparison, the BSE Sensex has slipped 4.7 per cent in the last six months. 

 

Go Digit General Insurance has a total market capitalisation of Rs 28,312.91 crore. At 10:50 AM, the stock price of the company surged by 7.27 per cent at Rs 307 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.31 per cent to 76,644.97 level.