Go Digit General Insurance: Q2 FY26 Sees Robust Growth and Profitability Boost

Go Digit General Insurance Limited has reported a strong performance for the second quarter of Fiscal Year 2026, showcasing significant growth in Gross Written Premium (GWP) and a notable increase in profitability. The company's GWP for Q2 FY26 reached INR 2,667 crore, marking a 12.6% year-on-year growth. When adjusted for the 1/n basis, the growth stands even higher at 15.6%. This robust performance is underpinned by an improved combined ratio and a substantial jump in profit before tax, signaling a healthy operational trajectory.

The company's segment-wise performance reveals a diversified growth story. Motor OD and Motor TP segments continue to be significant contributors, with GWP percentages of 23.3% and 38.2% respectively for Q2 FY26. The Health, Travel & PA segment also demonstrated strong growth, contributing 19.5% to the GWP. Fire insurance emerged as a standout performer, growing by over 60% and contributing 7.8% to the GWP, significantly outpacing the industry. This broad-based growth across segments highlights Go Digit's expanding market presence and effective product diversification strategies. The company's Assets Under Management (AUM) also grew by 15.4% to INR 21,345 crore as of September 30, 2025, contributing to higher investment income.

Strategic Insights and Operational Efficiency

Go Digit's management emphasized its focus on core insurance profitability and disciplined growth. The combined ratio improved to 111.4% in Q2 FY26 (109.9% without 1/n basis), down from 112.2% in Q2 FY25. This improvement is a testament to the company's efforts in managing claims and expenses. Profit before tax saw a significant 53% increase to INR 136 crore, and profit after tax rose to INR 117 crore, even with a 14% tax rate, which is expected to increase to 25% next year. The company also highlighted its highest ever market share of 6.2% in Motor OD, largely driven by a robust renewal book and an expanding distribution network.

However, the company acknowledged the impact of its high-growth 2-wheeler business on profitability. The upfront provision of commissions for five years, while premiums are earned over the same period, led to an additional loss of INR 53 crore in Q2 FY26. This dynamic puts pressure on the P&L under Indian accounting standards. Loss ratios in Motor OD increased to 71.3%, partly due to flood-related claims, and the health segment also saw higher loss ratios, influenced by government health business.

Outlook and Future Focus

Looking ahead, management expressed optimism for H2 FY26, anticipating better growth driven by positive macro indicators in the motor and SME segments. The company expects INR 710 crore of deferred acquisition cost to unwind in H2, which will positively impact IGAAP results. Furthermore, the shift to a 1/n basis for all premiums from October 2025 onwards is expected to streamline accounting. Go Digit continues to focus on expanding its product lines and channels, with a strategic emphasis on increasing the retail component in commercial lines to boost direct business. The company's disciplined approach to underwriting and investment management, coupled with its digital-first strategy, positions it for sustained growth and profitability in the competitive Indian insurance market.

Sustained Growth and Disciplined Execution

Go Digit General Insurance continues to demonstrate strategic clarity and disciplined execution, navigating market dynamics while achieving robust growth. The company's ability to improve its combined ratio and significantly boost profitability, despite specific segment challenges, underscores its operational resilience. With a clear focus on leveraging its digital platform, expanding its product mix, and maintaining a strong solvency ratio, Go Digit is well-positioned to capitalize on the evolving opportunities in the Indian insurance sector. The management's commitment to transparency and core insurance profitability reinforces investor confidence in its long-term vision.