The same has helped the four-year-old company, promoted by the Canada-based NRI businessman Prem Watsa''s Fairfax Holdings, to drive sales by over 70 per cent in the first quarter of the current fiscal, despite June being a washout, its founder Chairman Kamesh Goyal told PTI on Thursday.
However, the company saw its profit plunge to Rs 123 crore in 2020-21 from Rs 175 crore in 2019-20, primarily due to claims from the COVID-19 policies.
The Bengaluru-based insurer, which began operations in December 2017, saw its health business premium soar 350 per cent to over Rs 240 crore in the year, driven primarily by sale of coronavirus-related products, Goyal said.
This, he added, has given the company a market share of 0.37 per cent from near zero earlier in the Rs 58,601-crore segment, which is the largest for the industry after motor that had a gross written premium of Rs 68,266 crore in 2020-21.
"While the overall general insurance industry grew just about 5 per cent in FY21, we grew by over 44 per cent, taking our overall premium to Rs 3,243 crore, up from Rs 2,252 crore in FY20 and Rs 1,205 crore in FY19," Goyal said.
He added that the company''s assets under management (AUM) rose to Rs 5,590 crore in 2020-21, up from Rs 3,550 crore in the previous fiscal.
Similarly, the company''s gross written premia clipped at 70 per cent in the first two months of the current fiscal (as June was a washout due to the lockdowns), as against industry growth of 17 per cent, he added.
Goyal said the company expects a better-than-last-year sales growth this year, provided the third wave does not hit too hard.
In the first quarter, pandemic products premium grew to around Rs 260 crore, up from Rs 240 crore in March, he said adding that even motor premium has been growing very high.
In 2020-21, its motor premium grew 28 per cent to Rs 2,433 crore, or 3.56 per cent of the Rs 68,266-crore segment, making it the biggest business segment for the company. It is followed by the Rs 20,407-crore fire segment where it grew 109 per cent to Rs 430 crore, increasing its market share to 2.11 per cent.
Digit has over two crore customers and has processed over four lakh claims in the year.
Overall, Digit enjoys 1.63 per cent of the Rs 1,99,550-crore industry with a gross written premium of Rs 3,243 crore, which grew 44 per cent over 2019-20.
While its crop insurance sales grew 29 per cent to Rs 75 crore or 0.39 per cent share in the Rs 19,147-crore industry, its marine business declined 35 per cent to Rs 1 crore of the Rs 3,492-crore industry. Other segments grew 191 per cent to Rs 90 crore, or 0.30 per cent of the Rs 29,639 crore segment.
The company had a combined ratio, which is a key profitability and growth metric of a general insurer, of 109.4 pr cent.
Apart from Watsa, Digit is backed by private equities like A91 Partners, Faering Capital and TVS Capital, and is valued at about USD 2 billion now after a Rs 135 crore funding by existing investors in January. PTI BEN HRS