#business, #companies, #digit insurance, #premia sales

Kerala had set up India’s first lottery department in 1967.

Fairfax-promoted Digit Insurance is confident of taking its premia sales to over Rs 6,500 crore when it completes five years of operations in the next October, a top official of the Bengaluru-based general insurer has said.

The digital-only insurer had sold the first policy in October 2017 and has since then sold to over 20 million customers. It achieved break-even in the third year and entered the unicorn club in less than four years and is now valued at over USD 3.5 billion.

Its founder Chairman Kamesh Goyal said higher sales growth optimism comes from the near-total normalcy to the pre-pandemic level and the likely ebbing of the chip shortage, which is hitting the automobile industry, over the next few months, helping the industry claw back the lost motor premia sales. He added that the first half sales have already crossed Rs 2,200 crore.

While the industry grew 16-17 per cent in the first half, Digit has grown over 67 per cent to Rs 2,196 crore, driven primarily by the health segment, Goyal said.

In the whole of last fiscal, it had just Rs 3,243 crore of sales, he added. The industry is expecting to end the current fiscal clocking 22-25 per cent growth over last fiscal, which should mean the industry is back to pre-pandemic levels.

“Going by the company’s faster growth rate so far at close to Rs 2,200 crore in premia sales in the first half of FY22, we will easily cross the FY21’s Rs 3,243 crore with a minor profit which was crimped by the pandemic claims,” Goyal said.

He added that given a high base, “I hope to scale past Rs 6,500 crore with premia sales by the time we enter the sixth year of operation next October”.

In FY21, the company grew 44 per cent to Rs 3,243 crore as against industry growth of five per cent to Rs 2 lakh crore, and earned a profit of Rs 123 crore for the year, down from Rs 175 crore due to the higher pandemic claims.

In the first quarter of FY22, its gross written premia grew over 70 per cent as against 17 per cent for the industry. Goyal expects to cross the two per cent market share by then, from the current 1.68 per cent of the over Rs 2.2 lakh crore as of June 2021.

Its key profitability metric of combined ratio stood at 113.3 per cent as of the June quarter. In the market share sweepstake, Digit has 2.89 per cent of motor insurance, 0.32 per cent of health insurance.

Goyal expects to cross the two per cent market share by then, from the current 1.68 per cent of the over Rs 2.2 lakh crore as of June 2021.

He expects growth to be driven by motor and health, which has already crossed the Rs 300-crore mark in the first of the year with a claims ratio of 75-76 per cent, even though the industry is both challenging as well as exciting with intense competition.

Goyal said the business mix of Digit is led by ‘motor; that stood at Rs 2,433 crore of the total premia sales of Rs 3,243 crore of FY21, followed by ‘fire’ that clocked Rs 441 crore and ’health’ at Rs 183 crore and ’crop’ at Rs 75 crore.

He also said he wants to increase the corporate/ group sales that are only 30 per cent now with retail being the bulk 70 per cent. Asked if the company is planning an IPO as the market is red-hot, Goyal said “not in the near future but maybe within the next two years.”

Asked if the company is planning an IPO as the market is red-hot, Goyal said “not in the near future but maybe within the next two years.”

The company is majority-owned by Fairfax Holdings of the Canadian NRI businessman Prem Watsa, with minority equity participation from Faering Capital, Sequoia Capital, IIFL Alternate Asset Managers, TVS Capital Funds, A91 Partners, Indian Cricket captain Virat Kohli and the employees.

Fairfax has so far infused USD 140 million into the company, which has an overall capital infusion of USD 442 million. At the latest round of USD 200 million in July, Digit was valued at USD 3.5 billion, up from USD 1.9 billion in January 2021 when it became the first insurance unicorn. Its valuation has grown almost five times in the past one year.

TECH NEWS RELATED

SPARC inks licensing pact with Visiox Pharma for ophthalmic products

Sun Pharma Advanced Research Company (SPARC) on Wednesday said it has inked a licensing pact with Visiox Pharma LLC for the development and commercialisation of two ophthalmic solutions. The company has entered into an agreement with Visiox Pharma LLC (Visiox) to grant exclusive worldwide rights (except for India and ...

View more: SPARC inks licensing pact with Visiox Pharma for ophthalmic products

Mobile industry to play key role in India's vision for $5 trillion economy by 2025: Kumar Mangalam Birla

Rank 4 | Kumar Mangalam Birla & family | Company: Aditya Birla | Donation: Rs 377 crore | Primary cause: Healthcare (Image: Aditya Birla) The mobile industry will play a “vital” role in India’s vision to be a USD 5 trillion economy by 2025, of which USD 1 trillion ...

View more: Mobile industry to play key role in India's vision for $5 trillion economy by 2025: Kumar Mangalam Birla

We aspire to become the largest specialty footwear, accessories retailer in India: Rafique Malik of Metro Brands

Footwear retailer Metro Brands has aggressive expansion plans and is all set to push the pedal on growth after its initial public offering (IPO). According to the company’s management, it plans to open 260 more stores in the next few years, partner with more international brands such as Crocs and Fitflop, ...

View more: We aspire to become the largest specialty footwear, accessories retailer in India: Rafique Malik of Metro Brands

RBI retains advisory committee on Reliance Capital

The Reserve Bank of India (RBI) has retained an advisory committee it had appointed to assist the administrator of Reliance Capital, the central bank said in a statement. On November 30, the RBI said it has appointed the panel comprising former State Bank of India DMD Sanjeev Nautiyal, former ...

View more: RBI retains advisory committee on Reliance Capital

Hyundai lines up Rs 4,000 crore investment to drive in 6 EVs in India by 2028

Source: Reuters South Korean auto major Hyundai plans to invest around Rs 4,000 crore to drive in around six electric vehicles in India by 2028. The company is planning to roll out a mix of models based on its existing range as well as completely new vehicles based on ...

View more: Hyundai lines up Rs 4,000 crore investment to drive in 6 EVs in India by 2028

FreshBooks

Excellent (4.5) Bottom Line FreshBooks offers a well-rounded, intuitive, and attractive double-entry accounting experience that supports invoices and estimates; expenses; time tracking; and projects. It anticipates the needs of freelancers and smaller businesses well—better than its competitors in this class. US Street Price$13.50 Pros Double-entry accounting Delightful user experience ...

View more: FreshBooks

MG3 Core review: would you really want to own New Zealand's cheapest new car?

Photos / David Linklater MG3 Core $19,490 Price 307l Boot 6.7L Fuel Economy 82kW Power Pros Actually fun to drive Impressive quality Seven-year all-in warranty Cons Thirsty for a city car Weird infotainment system Firm ride around town If you like value for money (who doesn’t?), MG is ticking ...

View more: MG3 Core review: would you really want to own New Zealand's cheapest new car?

Contract staffing attrition to reach 49% by FY22 end: Report

HR firm Teamlease expects that in FY2022, contract staffing attrition will grow up to 49%, up from 40% FY2021. With 42% share of contract hires going to IT services companies, this segment is witnessing increased attrition as is already the case with full-time employees in the IT sector. Full time ...

View more: Contract staffing attrition to reach 49% by FY22 end: Report

Best business card scanner apps for iPhone and iPad 2021

The long and tumultuous journey of Amtek Auto’s insolvency process

Peugeot to go all-electric in Europe from 2030

Small Businesses Are Using AI—Sometimes

Citroen to hike C5 Aircross SUV price by up to 3% from January

Report: Herbert Diess to continue as Volkswagen Group CEO

Stellantis announces €30bn software transformation

Volkswagen launches new Tiguan UV tagged at Rs 31.99 lakh

IOC renews deal to buy up to 2 MT of oil from Russia's Rosneft

Welspun One Logistics Parks acquires 40 acres of land to set up warehouse in Bengaluru

Biocon ties up with Tabuk Pharmaceuticals to commercialise speciality medicines in Middle East

Samsung merges consumer electronics and mobile divisions, announces other leadership changes

OTHER TECH NEWS

;