Synopsis:
Fairfax-backed Go Digit General Insurance reported a 36.5% rise in net profit on a YoY basis, followed by a healthy rise of 12% in Gross Written Premium and an improving solvency ratio. Its AUM also increased by 17% during the same period.
With a market capitalization of Rs 33,400 crore, the shares of Go Digit General Insurance Ltd are currently trading at Rs 362 per share, down by 11 percent from its 52-week high of Rs 407.55 per share. Over the last six months, the stock has delivered a return of 20 percent.
Q1 Highlights
The insurance major reported a total income of Rs 2,179.46 crore in Q1 FY26, up by 5 percent from its Q1 FY25 income of Rs 2,076.99 crore. On a QoQ basis, it declined by 24 percent from Rs 2,855.18 crore.
Coming to its profitability, the company reported a net profit growth of 36.50 percent to Rs 138.33 crore in Q1 FY26 as compared to Rs 101.34 crore in Q1 FY25. Additionally, on a QoQ basis, it surged by 20 percent from Rs 115.61 crore.
In Q1 FY26, Go Digit reported a 12 percent year-on-year growth in Gross Written Premium (GWP), rising to Rs 2,982 crore from Rs 2,660 crore in Q1 FY25. The GWP was primarily driven by third-party motor insurance, which contributed 31.1 percent of the total.
This was followed by health, travel, and personal accident (PA) segments at 21.3 percent, fire insurance at 19.7 percent, own-damage (OD) motor insurance at 18.1 percent, and other segments making up the remaining 9.8 percent of the total GWP.
Additionally, its Asset Under Management (AUM) also grew by 17.4 percent to Rs 20,861 crore in Q1 FY26 from Rs 17,773 crore in Q1 FY25. Its Solvency ratio also improved from 2.17x to 2.27x.
A higher solvency ratio is beneficial because it indicates that an insurance company is financially strong and stable, with enough capital to meet its future obligations.
In the first quarter of FY26, GoDigit reported a loss ratio of 69.3 percent in the motor own-damage (OD) segment and 66.0 percent in the motor third-party (TP) segment. The health, travel, and personal accident (PA) segment had a loss ratio of 83.3 percent, while the fire segment recorded a loss ratio of 73.1 percent.
On a brighter note, the marine segment showed some improvement with a lower ratio of 51.4 percent, and engineering performed well, dropping to 53.5 percent. The “other” category came in at 64.8 percent, leading to a consolidated overall loss ratio of 70.3 percent for the quarter.
A lower loss ratio is a sign of strong underwriting performance and profitability, meaning the insurer is paying out fewer claims compared to the premiums it collects. On the flip side, a high loss ratio, especially one that exceeds 100 percent, indicates that the company is shelling out more in claims than it’s bringing in through premiums.
Go Digit General Insurance offers a wide range of insurance products in India, including motor insurance (for cars, bikes, taxis, trucks), health insurance (including OPD and employee health), and business insurance (like D&O, marine, and workmen’s compensation). It also covers travel, home, shop, and fire insurance, along with life and investment plans like ULIPs, endowment, and money-back policies.
Written by Satyajeet Mukherjee
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