June 24, 2024



GO Digit General Insurance Ltd (May Apply)

5 min read


Issue Size –: 96,126,686 sharesIssue Open/Close – 15 May / 17 May, 2024 Price Band (Rs.)  258 – 272 Issue Size (Rs.) – 26,146 mnFace Value (Rs) 10Lot Size (shares) 55

GO Digit General Insurance Limited (GODGIL) incorporated in 2016, is one of the leading digital full stack insurance companies, leveraging their technology to power what they believe to be an innovative approach to product design, distribution and customer experience for non-life insurance products. 

They offer motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which the customers can customize to meet his or her needs. They launched 74 active products across all business lines.

They aim to make insurance simple. Through innovation and transparency, they believe in delivering a seamless customer experience journey in a significant financial product an individual would purchase in their lifetime. As a digital full stack insurance company, they deploy a combination of insurance and technology solutions to assist in enrolment, insurance claims processing, underwriting, policy administration, data insights and fraud detection.

The company were the fastest growing insurer among private non-life insurers by GWP from FY22 to FY23, growing by approximately 37.5 pct over the period while the private non-life insurers (excluding standalone health insurers) overall grew by approximately 20.1 pct during the same period.

As of 9MFY24, they maintain a broad distribution footprint across 24 of the 36 states and union territories in India. As of 9MFY24, they had relationships with approximately 61,972 Key Distribution Partners, including approximately 58,532 POSPs, as well as individual agents, corporate agents, brokers and others. 

Out of the total proceeds of Rs. 26,146 mn, Rs. 11,250 mn would go towards maintenance of their solvency ratio. As per applicable IRDAI norms prescribed under the IRDAI Actuarial and Allied Regulations, 2024, they are required to maintain a minimum solvency ratio of 1.50x. And Rs. 14,896 mn would go towards existing selling shareholders.

Key Highlights

GODGIL’s primary addressable market is the non-life insurance market in India. According to the IRDAI and RedSeer Report the Indian non-life insurance contributed around USD 33.30 bn in GWP in FY23, showing a CAGR of 11.2 pct from FY18 to FY23 and a CAGR of 13.6 pct from FY21 to FY23. It is estimated that, as of 9MFY24, non-life insurance contributed around USD 27.50 bn in GWP from USD 24.60 bn in GWP as of 9MFY24, indicating positive growth momentum.

As per RedSeer report, the company has grabbed 3.0 pct and 6.0 pct non-life insurance market share and motor insurance market share based on the GWP for the 9MFY24 and the company has net promoter score of 73.8 pct for non-claims and 93.1 pct for motor claims.

The company has developed predictive underwriting models that leverage the insights gathered by their data bank. Their predictive underwriting models aid them in determining and targeting the markets and customers in India that are expected to be more profitable and hence, allows them to accurately price their coverage.

GODGIL strive to increase their GWP among tech savvy customers and partners by building partnerships and ongoing engagement, including gathering insightful user data-points which, in turn, will improve their ability to create relevant insurance products.

They intend to maintain a healthy product pipeline focused on continuing their track record of innovation. In FY24, they launched offerings such as OPD Health, Life Science Liability, Supreme Care Policy & Health Top Up products, among others. They expect that their growth will continue as their expanding insurance product offerings drive customers to platform and provide visibility to their other products.

The company aims to grow and diversify their distribution network to expand customer reach in order to generate new business. They want to expand their relationships in smaller states and cities or in areas with customers that have historically exhibited less preferrable risk profiles. They believe that the information and insight they have accumulated to date will allow them to more accurately assess and price the risks in these areas and allow them to generate more profitable business.

Total Income of the company has grown by ~21 pct CAGR during the period FY21-23. While GWP and AUM of the company has grown 49.44 pct CAGR and 50.5 pct CAGR over the same period. During FY23, company reported total income of Rs. 58,857 mn which increased by ~53 pct YoY. As of FY23 the company reported profit of Rs. 355 mn which was increased over loss of Rs. 2,959 mn in FY22. During 9MFY24 the Total Income/Profit came at Rs. 58,912 mn/Rs. 1290 mn which was up by 37.5 pct YoY/1190 pct YoY.

Key Risk

They are required to meet the mandatory control level of solvency margin as prescribed under the Insurance Act and they could be subject to regulatory actions and could be forced to stop transacting any new business or change their business strategy which can slow down their growth.

GODGIL relies on motor vehicle insurance products for a substantial amount of their sales and profitability. Any constraint on sale of these products due to future changes in regulation or customer preference can impact business of the company.

Financial Performance

ParticularsFY21FY22FY239MFY239MFY24No. of Customers (mn)14.2725.7738.7735.3343.26No. of Policies Issued (mn)5.567.7610.937.718.46GWP Rs. (mn)3243452676724305288466797Retention Ratio %81.2079.4081.6079.1084.30Total Investment Income Rs. (mn)30834369721851657765AUM Rs. (mn)5590193939126684118262149090GDPI Rs. (mn)2417646739616014534559705Net Earned Premium Rs. (mn)1943734042516373767351146Net Written Premium Rs. (mn)2632341801590934184056315Total Income Rs. (mn)2252038410588574284158912Operating Profit Rs. (mn)-1855-3751-663-570-101Profit Rs. (mn)-1228-29593551001290Available solvency Margin Rs. (mn)1150018676231032269326281Required Solvency Margin Rs. (mn)57299283129791197516443Yield on total investment %6.906.206.306.207.40Loss Ratio %74.0074.0067.2070.2069.60Expense Ratio %32.8034.8037.8036.6014.40Net Expense Ratio %35.4038.7040.2038.9039.10Combined Ratio %109.40112.70107.40109.10108.70Solvency Ratio (times) Ratio %2.603.802..42.3024.70IBNR (Gross) Rs. (mn)1896632298458254415055057IBNR (Net) Rs. (mn)1712129310411363954850412

Peer comparison FY23

Name of CompanyFVNet Profit (Rs. mn)EPS (Rs.)EPS Diluted (Rs.)Net Worth (Rs. mn)RoNW %NAV per shareGWP (Rs. mn)Go Digit General Insurance Limited10335.470.410.4232541.5326.6172429New India Assurance Company Limited510612.926.366.362070495.13125.6387915Star Health and Allied Insurance Company Limited106185.9210.710.415430111.3993.35129525ICICI Lombard General Insurance Company Limited517290.5235.1635.1610392216.64211.6217718


Go Digit has established itself as a leader in the digital-first insurance space, offering innovative products that cater to the evolving needs of the Indian non-life insurance market. As they primarily sell insurance products to consumers, they are affected by the performance of the non-life insurance industry and general macroeconomic conditions. Only high-risk takers can apply to this issue, rest can skip this issue.

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