Company Profile:
Founded: December 7, 2016
Founder: Kamesh Gopal Chand Goyal
Headquarters: Bengaluru, India
Digital Full-Stack Insurers:
Full-stack insurers manage all aspects of insurance in-house, from sourcing to underwriting to servicing, under strict regulatory oversight. Digital full-stack insurers integrate advanced technology into their operations to enhance efficiency.
Market Share Growth:
According to RedSeer, digital full-stack insurers increased their share of the non-life insurance market from 3.3% in FY23 to 4.3% by December 2023.
Go Digit's Market Position:
Products: 74
Market Share in Motor Insurance: 6.0% (as of Dec 31, 2023), 5.4% (FY23)
Key Performance Indicators (9MFY23):
Customers: 43.3 million
Policies Sold: 8.5 million
Gross Written Premium: ₹6,679.7 crore
Retention Ratio: 84.5%
Total Investment Income: ₹776.5 crore
Assets Under Management (AUM): ₹14,909 crore
Digital Transformation:
Digit General Insurance has fully transitioned to cloud operations, becoming one of the first non-life insurers in India to do so. By December 31, 2023, the company had 1,883 API integrations, leading to the issuance of 34.54 million policies through these integrations.
Credits goes to: Screener.com
Product Contribution to Gross Written Premium (GWP):
Motor: 62.5%
Liability: 9%
Property & Engineering: 10.5%
Health (excluding travel & personal accident): 10.5%
Personal Accident: 2.5%
Travel: 0.5%
Others: 4.5%
Distribution Network:
Digit General Insurance operates in 24 states in India and partners with 61,972 distribution agents, including 58,532 POSPs, individual agents, corporate agents, and brokers. Additionally, products are sold directly through the company's website and web aggregators.
Investment Strategy:
The company invests cash flows from its insurance operations in Indian market securities, achieving an average yield of 7.4% during 9MFY24 and 6.3% during FY23. As of December 31, 2023, 97.3% of its assets were in Indian government securities or corporate bonds, with 71.8% of corporate bond exposure in AAA-rated bonds.
Mobile Application:
The “Digit Insurance” mobile app has a Google rating of 4.7 out of 5.0 with over 220,000 reviews, and a Facebook rating of 4.9 out of 5.0 with over 27,000 reviews (as of FY 2024).
Geographical Concentration:
Maharashtra, Karnataka, and Delhi accounted for 54.5% of the company's revenues in 9MFY2024.
IPO Details:
Digit General Insurance raised ₹2,615 crore through its IPO, listing on May 23, 2024. The funds will be used to support existing business activities and for listing benefits.
About Stock:
The current market price is 363 INR. This company has around 350 cr. Debt but it has 2545 cr. Reserves. So we can consider this company is a free company. It has good face value and the value is around 10 INR. If it breaks its resistance at 375 it may give a new target and may test 414 INR.
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Challenges:
Low Return on Equity: The company has a return on equity of -1.16% over the last three years.
Earnings Composition: The earnings include an other income of ₹468 crore, which may affect the clarity of core operational performance.
PROS:
Strong Annual Growth:The company has strong annual growth
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