Go Digit General Insurance Ltd Management Discussions

FY2025-26

Go Digit General Insurance Limited (GDGIL or Digit) is promoted by Kamesh Goyal and FAL Corporation (FAL). FAL is wholly owned subsidiary of Fairfax Financial Holdings Limited (FFHL), which is a Canadian based holding Company primarily engaged in property and casualty insurance, reinsurance and the associated investment management.

Industry Overview

During FY2025-26, the non-life insurance industry grew by 9.3% to ^ 3,36,12,268 Lakhs from ^ 3,07,66,069 Lakhs in FY2024-25. Private multiline insurers grew by 8.0%, public sector multiline insurers grew by 7.7%, Stand-alone health insurers (SAHI) grew by 19.4% and specialized insurers grew by 5.7%. Market share for Private multiline insurers, public sector multiline insurers, SAHI and specialized insurers was 52.3%, 30.5%, 13.7%

and 3.5% respectively compared to 52.9%, 31.0%, 12.5% and 3.6% respectively in FY2024-25.

Health business (including personal accident segment) grew by 16.7% to ^1,48,74,820 Lakhs from ^ 1,27,45,259 Lakhs in FY2024-25, Motor grew by 9.2% to ^1,08,21,608 Lakhs from ^99,09,347 Lakhs in FY2024-25. Commercial segments, which include Fire, Marine, Engineering and Liability, grew by 11.8% to ^46,13,808 Lakhs from ^41,25,310 Lakhs in FY2024-25. Other miscellaneous segment de-grew by 17.2% to ^33,02,032 Lakhs from ^39,86,153 Lakhs in FY2024-25.

Performance Review

Company recorded Gross Written Premium (GWP) of ^11,29,409 Lakhs during FY2025-26 vs ^10,28,214 Lakhs during FY2024-25, registering a growth of 9.8%, as against private sector multiline insurers growth of 8.0%. Following is the GWP mix and growth of the Company during last 3 financial years.

We aim to make insurance simple. Through innovation and transparency, we believe in delivering a seamless customer experience journey in a significant financial product an individual would purchase in their lifetime. We are one of the leading digital full stack insurance companies, leveraging our technology to power what we believe to be an innovative approach to product design, distribution and customer experience for nonlife insurance products. We offer motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which the customers can customize to meet their needs.

The Companys technology platform supports its product design by enabling the incorporation of a modular product architecture and provides the backbone for its application program interfaces (API), applications, portals and website that allow customers and partners to engage with the Company conveniently. We are one of the leading digital full stack insurance companies, leveraging our technology to power what we believe to be an innovative approach to product design, distribution, and customer experience for non-life insurance products. We have end-to-end digital capabilities and a digital first approach across customers insurance value chain.

Outlook, Opportunities and Threats

The penetration with respect to Non-Life Insurance Industry remained same at 1 per cent during FY2024- 25 as in FY2023-24. In 2024-25, the insurance density in India related to non-life insurance density remained unchanged at USD 25. Based on rising level of young population and increasing disposable income, the Company is well placed to tap the growing market with its modular product design, technology-enabled distribution and processes and the Companys mission to make insurance simpler. The customer experience is core to what we do. Insurance products have historically been hard to understand and sign up for, and making and settling claims has been cumbersome. We are dedicated to establishing trust and promoting transparency in our relationships with our customers by simplifying insurance and offering easy-to-understand, customizable products that enhance our customers experience.

The Company invests in Artificial Intelligence and Machine Learning to improve the customer journey across products, product underwriting and claim assessment.

The Company believes that these investments should aid in increasing customer satisfaction while also generating better returns for shareholders. Our use of technology and AI-driven microsystems, or bots, to streamline a major amount of our operations across the onboarding, underwriting, servicing and claims processes allows us to deliver a simple and tailored customer and partner experience while keeping our employee base lean. In addition, while our approach requires a certain level of ongoing investment in technology and headcount over time, we expect our overall marginal cost spent to support new business as a percentage of our premiums will continue to decline and ultimately result in increased profitability of our insurance operations as we scale.

We are dedicated to establishing a partnership in our relationship with our distributors. Our distribution partners include individual agents, POSPs, corporate agents, motor insurance service providers (MISPs) and brokers. Our partners range from older agencies to new non-bank financial companies, and each has a different way of operating and a different level of technical capability. We understand these differences and extend our technology and expertise to our distribution partners to develop customized solutions that provide them with the tools, products, information and support to effectively target and service customers.

Loss reserves are based on estimates as to future claims liabilities and if they prove inadequate, it could lead to further increases in reserves and materially adversely affect our results of operations. Catastrophic events, including natural disasters, terrorist attack or nuclear disaster, could materially increase our liabilities for claims by customers.

Way forward

- Provide relevant, transparent and customizable coverage to policyholders

- Empower distribution partners through innovative use of technology through customized integrations and self-service modules

- Leverage databank, utilize Artificial Intelligence and Machine learning to enable algorithms driven strategic decisions

Following is the snapshot of the Companys financial and operational performance for FY2025-26

		GWP Mix			Growth
	FY2023-24	FY2024-25	FY2025-26	FY2023-24	FY2024-25	FY2025-26
Motor - Own Damage	22%	22%	23%	42%	14%	15%
Motor - Third Party	39%	35%	37%	11%	3%	15%
Motor - Total	61%	57%	60%	21%	7%	15%
Health, Travel & Personal Accident	19%	22%	18%	80%	30%	-9%
Fire	9%	8%	10%	19%	2%	33%
Others	11%	13%	12%	-8%	34%	4%
Total	100%	100%	100%	25%	14%	10%

Notes

1. Data for the period FY2025-26

2. Market share is based on our GWP of FY2025-26

3. Data as of March 31, 2026

4. Customers/people covered under the policies issued since inception of operations in 2017 till March 31, 2026

5. AUM includes equity of market value and cash and bank balance

The Numbers:
Gross Written Premium (%) (1,2)	Market Share (%) (1,2)	Diverse Product Portfolio (3)
K 11,294 cr.	3.4/6.3 Market Share for Total/Motor Insurance	88 Active Products launched since 2017
1.67 Cr policies sold (1)	Partner Network (3)	Claims Settled (3)
8.4 cr. Customers	81,124	40.6 Lakhs Claims settled since inception
Assets Under Management (3,5)	Manual Policy Insurance (%) (1)	Customer Satisfaction Score (%) (1)
K 22,922 cr.	0.37	95.7/83.3 Motor claims/Non Claims

Corporate Governance Report

Key Performance Indicators
Particulars	FY2024-25	FY2025-26	Q4 FY2024-25	Q4 FY2025-26
Gross Direct Premium	8,472	9,846	1,981	2,402
Gross Written Premium	10,282	11,294*	2,576	2,736*
Net Earned Premium	8,046	8,414	2,247	2,301
Net retention Ratio (%)	80.1	73.7	78.9	77.2
Loss Ratio (%)	72.8	72.9	76.5	75.2
Solvency Ratio	2.24	2.42	2.24	2.42
Profit before Tax (only with DAC)	689	1,021	142	239
Profit after Tax (only with DAC)*	516	764	106	179
Net-worth (Equity)	7,099	7,610	7,099	7,610
o Return on Average Equity (%)A	15.7	17.7	2.7AA	4.0AA
Combined Ratio on NEP with DAC (%)*	106.9	105.7	106.8	105.8
Combined Ratio (%)**	104.0	103.0	101.3	99.1
Profit before Tax	425	632	116	173
Profit after Tax#	425	544	116	149
Net-worth (Equity)	4,033	4,586	4,033	4,586
< Return on Average Equity (%)A	13.0	12.6	2.9AA	3.3AA
Combined Ratio (%)***	109.3	110.7	111.3	111.6
Combined Ratio without 1/n basis (%)	108.6	108.9	109.7	109.4

- IRDAI has mandated that all insurers adopt Indian Accounting Standards (IndAS) beginning 1 April 2026. In preparation for this transition, our company has prepared IndAS financials and had it audited as special purpose financial statements for the financial year 2025-26.

- *IndAS Combined Ratio on NEP with DAC: (Claims incurred net [excluding reserve discounting] +Commission Net including deferred acquisition cost + Operating Expenses)/Net Earned Premium)

- **IndAS Combined Ratio: (Claims incurred net (including reserve discounting) +Commission Net including deferred acquisition cost Operating Expenses)/Net Earned Premium)

- ***IGAAP Combined Ratio: (Claims incurred net/Net Earned Premium)+(Commission Net + Operating Expenses)/Net Written Premium)

- Net worth [IGAAP): Paid up share capital+Securities Premium+ Accumulated losses/gains as per IGAAP

Net worth (Ind AS): Paid up share capital+Securities Premium+ Accumulated losses/gains as per IND AS+ ESOP Reserves

A Return on Average Equity (IGAAP) is calculated as Profit after tax divided by (Opening Net-worth [IGAAP Equity] + Closing Net- worth [IGAAP Equity])/2

Return on Average Equity (Ind AS) is calculated as Profit before tax as per IGAAP adjusted for DAC and IND AS effective tax rate divided by (Opening Net-worth [IGAAP Equity] + Closing Net-worth [IGAAP Equity]]/2

Advance premium on March 31, 2026 stands at R 3,209 Crore

- Deferred Acquisition Cost (pre-tax) as on March 31, 2026 is R 2,470 Crore

- *Effective from October 1, 2024, Other applicable long-term premium is accounted on 1/n basis. Without 1/n basis, GWP for Q4 FY2025-26 is R 2,831 Crore and FY 2026 is R 11,597 Crore

- #Applicable tax Rate for FY2025-26 is 13.8% in case of IGAAP and 25.2% in case of IndAS

- AA Not annualised