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Digit Insurance’s profit zooms 6X to Rs 338 Cr in FY23

Digit Insurance’s revenue from operations grew to Rs 5,164 crore during the fiscal year ending March 2023 from Rs 3,404 crore in FY22.

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Kunal Manchanda & Harsh Upadhyay
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IPO-bound general insurance firm Digit Insurance has continued its growth trajectory over the past few fiscal years and FY23 has been no exception: the firm registered around 52% growth in its scale. At the same time, the company’s profits shot up over six-fold.

Digit’s revenues from operations grew to Rs 5,164 crore during the fiscal year ending March 2023 from Rs 3,404 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies show.

Financial FY23

Check detailed 3 year financial comparison on thekredible.com

Digit offers a portfolio of products across the motor, travel, property, and health insurance segments. The premium earned on the sale of insurance policies was the main source of business revenue for Digit Insurance in FY23. The company also earned Rs 726 crore from the interest of current and non-current investments.

When it comes to burn, the claims settled to its policyholders accounted for 59% of the overall cost which grew 33.8% to Rs 3,190 crore in FY23 from Rs 2,385 crore in FY22. Importantly, this expense was net of commission and brokerage.

Digit’s branding cost saw a surge of 65.8% to Rs 1,807 crore in FY23 while its employee benefits, information technology, rent, legal professional, and other overheads took the overall expenditure up by 42.13% to Rs 5,445 crore in FY23 as compared to Rs 3,831 crore in FY22.

Expense Breakdown

FY22

Total ₹ 3831 Cr

FY23

Total ₹ 5445 Cr

  • Employee benefit expense

  • Branding expenses

  • Claims incurred

  • net of commission

  • Information technology expenses

  • Rent

  • legal professional fees

  • Others

Head to TheKredible for the detailed revenue breakup.

The notable performance helped Digit increase its profits over six-fold to Rs 338 crore in FY23 from Rs 50 crore in FY22. Its ROCE and EBITDA margin improved to 13% and 8% respectively. 

On a unit level, it spent Rs 1.05 to earn a rupee in FY23.

FY22-FY23

FY22 FY23
EBITDA Margin 2% 8%
ROCE 2% 13%
Expense/Rupee of ops revenue ₹1.13 ₹1.05

Digit Insurance competes with the likes of Acko which posted a revenue of Rs 1,759 crore with a loss of Rs 738 crore during FY23, besides other established players. Digit has not only had higher revenue when compared to Acko, but has also posted a profit which grew six times when compared to FY22, making it an unquestioned success story. 

However, as it has expanded into newer segments, notably health, one will need to wait and see how it sustains momentum, as health is one segment that demands a lot of patience to deliver positive results, with the capacity to throw up unpleasant surprises all the time. While its record indicates a bright future ahead, the intense competition in the segment and the presence of very strong players will ensure that Digit will have to stay on its toes to ensure it maintains its track record.  

Insurance Digit Insurance Fintrackr FY23
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