Acko General Insurance has posted a net loss of ₹382.3 crore in the financial year 2021-22, with revenue from operations standing at ₹988.2 crore, regulatory filings obtained by VCCircle showed.
The net loss increased three times against its loss last FY where ₹132.5 crore was recorded against ₹422.3 crore revenue from operations. The increase in losses was primarily due to a spike in expenses.
The Bengaluru-based insurtech startup recorded revenue of ₹1,087.5 crore in FY22 against ₹475.3 crore in FY21, a 129% jump. The majority of revenue was generated from its sales of health insurance products.
The sales of health insurance products generated ₹401.5 crore while ₹364 crore was recorded in motor TP insurance. In FY21, motor TP insurance generated ₹188.8 crore, while the health segment recorded ₹118.3 crore.
In FY22, the company delivered ₹988 crore worth of GWP (Gross Written Premium), the filings showed that at the end of the year Acko maintained a solvency ratio of 1.68.
Acko declined to comment on VCCircle’s query.
Incidentally, the filings showed that 33% of partnership claims pertaining to Swiggy Hospicash Policies were fraudulent in nature. The company said it has made suitable underwriting changes to curb this kind of fraud.
The company’s expenses rose to ₹1,470 crore against ₹608 crore in FY21, a jump of 2.4 times. The increase was primarily on the back of employee benefits. The expenses in employee benefits rose to ₹102 crore against ₹45 crore last financial year.
In October 2021, Acko General Insurance Ltd raised $255 million as part of its Series D round, led by private equity (PE) firms General Atlantic and Multiples Private Equity, at a valuation of $1.1 billion to enter the coveted unicorn club.
Acko sells digital-first insurance products across cars, bikes, travel, and gadgets. It partners with companies including Amazon, MakeMyTrip, Ola, and Urban Company to distribute its products. It was founded by Varun Dua in 2016. Prior to launching Acko, he was the CEO and Co-founder of Coverfox Insurance Broking Pvt. Ltd.
As per Tracxn data, Acko provides 500,000 employees across 150 corporations, By October 21, it has sold over 70 million customers and with a premium of nearly $150 million. In Q1 FY22, Acko increased its sales of auto insurance to 120%. It has also partnered with 6 IPL (Indian Premiere League) teams as an official insurance partner.
