The digital insurer alone sold the first policy in October 2017 and has since sold over 20 million customers. It achieved break-even in its third year and entered the Unicorn Club in less than four years and is now valued at over USD 3.5 billion.
Its founding president Kamesh Goyal said that the high sales growth optimism comes from near-total normalcy to pre-pandemic levels and the possibility of chip shortages, which is affecting the automobile industry in the next few months, will help the industry. Helping to come back. Lost Motor Premium Sales.
He said the first half sales have already crossed Rs 2,200 crore.
Goyal said that while the industry grew 16-17 per cent in the first half, Digit grew over 67 per cent to Rs 2,196 crore, mainly driven by the health segment.
He said in the last financial year its sales were only Rs 3,243 crore.
The industry is expected to end the current fiscal with a growth of 22-25 per cent over the previous fiscal, which should mean that the industry is back to pre-pandemic levels.
Goyal said, “With the company’s fastest growth rate close to Rs 2,200 crore in the first half of FY12, we will easily surpass Rs 3,243 crore in FY21 with a marginal profit. , which was cut short by the claims of the pandemic,” Goyal said.
Given a high base, “I expect to exceed Rs 6,500 crore with premium sales by the time we enter the sixth year of operations next October”, he said.
In FY21, the company grew 44 per cent to Rs 3,243 crore, while industry growth grew by 5 per cent to Rs 2 lakh crore, and made a profit of Rs 123 crore for the year, due to higher pandemic claims of Rs 175. crore was less than Rs. .
In the first quarter of FY22, its gross written premium rose to over 70 per cent against 17 per cent for the industry.
Goyal expects to cross two per cent market share by then, up from the current 1.68 per cent of Rs 2.2 lakh crore as of June 2021. Its key profitability metric of the combined ratio was 113.3 percent as of the June quarter. In the market share sweepstakes, Digit owns 2.89 percent of motor insurance, 0.32 percent of health insurance.
He expects the growth to be driven by Motor and Health, which has already crossed the Rs 300 crore mark with a claims ratio of 75-76 per cent in the first year of the year, even though the industry is both challenging and exciting with stiff competition. .
Goyal said Digit’s business mix was ‘motor; This stood at Rs 2,433 crore of total premium sales of Rs 3,243 crore for FY21, followed by ‘Aag’ of Rs 441 crore and ‘Health’ of Rs 183 crore and ‘Crop’ of Rs 75 crore.
He also said that he wants to increase the corporate/group sales which is currently only 30 per cent and retail sales is 70 per cent.
Asked if the company is planning an IPO as the market is hot, Goyal said, “Not in the near future, but maybe in the next two years.”
The company is majority owned Fairfax Holdings Canadian NRI businessman Prem Vats, with minority equity participation from Fairing Capital, Sequoia Capital, IIFL Alternate Asset Managers, TVS Capital Funds, A91 Partners, Indian cricket captain Virat Kohli and employees.
Fairfax has so far invested $140 million in the company, with a total capital of $442 million. In 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 increased nearly five times in the last one year.