Go Digit Q2 FY27 PAT at Rs 208 Crore

Insurance Revenue: Rs 2,720 crore (vs Rs 2,675 crore YoY)
PAT (excluding mark-to-market): Rs 208 crore (vs Rs 277 crore YoY)
Flood Loss Impact (Net): Rs 63 crore in Q2 (vs Rs 10 crore in Q2 previous year)
PAT excluding flood losses: Rs 255 crore (vs Rs 285 crore YoY)
Profit Commission on Reinsurance: Rs 4 crore (vs Rs 32 crore previous year)
Private Car OD Loss Ratio Impact: Rs 23 crore
CISR Combined Ratio: 99.8% (vs 94.9% YoY)
CISR Combined Ratio excluding flood: 97.4% (vs 94.5% YoY)
Solvency Ratio: 2.40x
ROE: 4.4% (on iGAAP net worth)
AUM (Book Value): Rs 24,371 crore (up 15.9% YoY)
Long-term Advanced Premium: Rs 3,556 crore as of 30th September 2026 (vs Rs 3,209 crore in March 2026)
Unrealized Equity Gains: Approximately Rs 148 crore (estimated to have doubled since quarter-end)
Investment Yield: Approximately 7.4%

Motor Market Share: 5.68% in Q2 (vs 5.58% in Q1)
Own Damage Market Share: 4.99% in Q2 (vs 4.76% in Q1)
Premium Retention: 84.3% (vs 79.1%)
GDPI Growth: -1.2% (vs industry +7%)
GWP Growth: -3.6% (flat excluding health reinsurance inward and government health business)
Motor Premium Growth: -4.1% (Private Car: -10.7%, Two-wheeler: +18.6%, CV: -20%)
Fire GWP Growth: -29.9%
Equity Allocation: 9.6% of AUM (3x IPO level)
Debt Duration: 4.8 in September, 4.9 in October (vs 5.2 in March 2025)
Reinvestment Yield: 7.8% in June, 7.7% in September, 8% in October

Private Car OD Attritional Loss Ratio: Improved to 81.1% in Q2 (from 85.3% in Q1); overall Q2 loss ratio at 93% due to floods
Health Business: Retail health constitutes less than 6-7% of total health portfolio; majority is group health employer-employee business
New Business: Two-wheeler business grew 15% on collected basis

The company transitioned to Indian Accounting Standards (Ind AS) effective 1st April 2025, with comparatives on the same basis. Key changes include:

Reinsurance commission deferred over contract period
Claims booked at present value with interest charged as insurance finance expense (Rs 171 crore in Q2)
Discount rate based on risk-free yield curve plus illiquidity premium (25% of spread between risk-free and AAA corporate bond yields)
Discount rates for liabilities: 6.2%-6.6% for up to 1 year; ~7.5% for more than 8 years
Onerous contract assessment primarily in motor TP and group health

Management continues to prioritize profitability over growth in soft market conditions
Higher premium retention remains a core strategy
Commercial treaties for fire, engineering, and liability continue to show favorable results despite flood losses
Introduced new commercial product; building capabilities with initial volumes
Exploring bancassurance opportunities, including potential relationship with IDBI Bank post Fairfax's intended share sale

Distribution Paper Impact: Management declined to speculate on final guidelines but acknowledged current EoM guidelines have increased commissions
Discounting Methodology: Detailed explanation provided on risk-free rate plus illiquidity premium approach; discount rate changes unwind in subsequent quarters
Expense Ratio: Increase attributed to higher two-wheeler business proportion and associated commissions
Fixed Commission Regime: Management believes company will not be worse off and underwriting philosophy remains unchanged
Gujarat Flood Loss Share: In non-motor, loss share believed to be lower than market share; motor difficult to compare due to EV vs ICE vehicle impact
Group Health Pricing: Improvement expected if EoM weightage reduces; current industry loss ratios exceed 100%
Equity Allocation: Target to increase to 12.5% of AUM including REITs, based on capital allocation model