New Delhi, Oct 15
New-age insurance company ACKO has reported Rs 670 crore loss in financial year (FY) 2023-24, as the firm's total expenses went up due to higher operational cost.
In FY 2022-23, the company had suffered a loss of Rs 738 crore.
The company's expenditure in the FY 2023-24 stood at Rs 2,830 crore. It registered an increase of 11.6 per cent on an annual basis. The total expenditure of the company in the FY 2022-23 was Rs 2,535 crore.
The share of insurance claims in the company's total expenses in the FY 2023-24 was 29.3 per cent or Rs 830 crore, as per its financials with Registrar of Companies.
Advertising and promotions were the second biggest expense of the company, raising to Rs 563 crore in the last financial year.
Employee benefits, commission to agents, reinsurance premiums, IT, legal and professional fees were other major expenses of the insurance company in the last financial year.
The company's income surged by 19.8 per cent on an annual basis to Rs 2,106 crore in the FY 2023-24, which was Rs 1,758 crore in the FY 2022-23.
The share of gross insurance premiums in the total income of the company was 73.35 per cent. Last financial year, it increased by 33.9 percent on annual basis to Rs 1,587 crore.
In the last financial year, service contracts, reinsurance, commission and interest from investments were other major revenue sources for the company.
Due to losses, the company's Return on Invested Capital (ROCE) remains negative. In the financial year 2023-24. it was -35.23 per cent. This figure was -54.98 per cent in the financial year 2022-23.
In the financial year 2023-24, the company spent Rs 1.34 to earn one rupee of income. In the financial year 2022-23, this figure was Rs 1.44.
The company is not expected to be profitable even this year. Earlier this year, Acko founder Varun Dua had said the company could become profitable in the financial year 2026-27.