Acko General Insurance Limited (Acko GIC) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Acko General Insurance Limited

Acko General Insurance Limited Standalone Balance Sheet (Rs in Thousands)

Particulars	31-03-2024	31-03-2023
SOURCES OF FUNDS
Share capital	2,44,60,000	2,14,60,000
Reserves and surplus	4,15,344	3,40,294
Fair value change account
Shareholders	397	690
Policyholders	1,283	1,129
Total	2,48,77,024	2,18,02,113
APPLICATION OF FUNDS
Investments - shareholders	55,94,975	73,39,278
Investments - policyholders	1,80,81,013	1,20,14,138
Fixed assets	5,71,973	67,137
Cash and Bank Balances	1,82,517	3,04,104
Advances and Other Assets	17,43,586	17,22,843
Current liabilities	1,09,09,086	77,76,511
Provisions	89,55,824	58,72,415
Net current assets	-1,79,38,807	-1,16,21,979
Debit balance in profit and loss account	1,85,67,870	1,40,03,539
Total	2,48,77,024	2,18,02,113

Acko General Insurance Limited Standalone Profit & Loss Statement (Rs in Thousands)

Particulars	31-03-2024	31-03-2023
Operating profit / (loss)
Fire insurance		-9
Miscellaneous insurance	-6,84,236	-61,49,048
Income from investments
Interest, dividend & rent - gross	5,33,044	6,16,654
Profit on sale/ redemption of investments	39,719	39,561
Less : Loss on sale/ redemption of investments	12,585	12,856
Other income	1,449	535
Total	-1,22,609	-55,05,163
Expenses other than those related to Insurance business	4,601	7,797
Contribution to Policyholders ' A/c - towards excess Expenses of Manage	44,37,121	-
Total	44,41,722	7,797
Profit/(loss) before tax	-45,64,331	-55,12,960
Balance of Profit/(Loss) brought forward from last year	-1,40,03,539	-84,90,579
Balance carried forward to Balance sheet	-1,85,67,870	-1,40,03,539
Earnings per share
Basic	-1.95	-2.76
Diluted	-1.95	-2.76

Acko General Insurance Limited Standalone Cash Flow Statement (Rs in Thousands)

Particulars	31-03-2024	31-03-2023
Cash flow from operating activites
Premium received from policyholders, including advance receipts	1,91,02,344	1,54,89,725
Other receipts/(payments)	-	535
Payments to re-insurers, net of commission and claims	-2,90,115	-1,57,531
Receipts from co-insurers, net of claims recovery	-1,47,890	9,392
Payments of claims (net of salvage)	-87,43,732	-83,85,941
Payments of commission and brokerage	-17,98,636	-3,10,588
Payments of other operating expenses	-81,52,608	-65,60,709
Deposits, advances and staff loans	-57,291	-9,096
Income taxes paid (Net)	-80,691	1,28,738
GST paid	2,94,001	-3,97,081
Other payments	104	-1,863
Net Cash Flow from Operating Activates	1,25,486	-1,94,419
Cash flow from investing activities
Purchase of fixed assets (net of capitalization of CWIP & advances)	-9,92,631	-57,561
Proceeds from sale of fixed assets	1,637	43
Purchase of investments	-4,99,72,670	-4,95,30,666
Sale of investments	4,62,66,642	3,87,92,158
Rent / Interest / Dividend received (including income accrued on investments)	14,50,100	9,49,033
Net Cash Used in Investing Activities	-32,46,922	-98,46,993
Cash flow from financing activities
Proceeds from issuance of share capital and share premium (net of expenses)	29,99,849	99,99,546
Net Cash Flow from Financing Activities	29,99,849	99,99,546
Net increase in cash and cash equivalents	-1,21,587	-41,866
Cash & cash equivalents at the beginning of the year	3,04,104	3,45,970
Cash & cash equivalents at the end of the year	1,82,517	3,04,104

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Operating Activities:

Acko turned around its operations with a positive cash flow of ₹1.25 crore in FY 2024 compared to a deficit of ₹1.94 crore in FY 2023. This was mainly due to higher premium collections despite increased payouts for claims, commissions, and operating costs. The recovery signals stronger underwriting performance, although cost pressures remain high.

Investing Activities:

The company reported a net outflow of ₹32.47 crore in FY 2024 from investing activities, primarily due to net investment in securities, despite higher income from interest and dividends. While still negative, the cash usage was significantly lower than FY 2023, indicating better investment management.

Financing Activities:

Acko raised ₹30 crore through share capital and premium issuance in FY 2024, down from a substantial ₹100 crore in FY 2023. This capital infusion supported the company’s liquidity and underwriting capacity. However, the reduced fundraising in FY 2024 may signal a shift toward operational self-sufficiency or slower capital needs compared to the previous year.

Net Cash Flow and Cash Position:

Despite improved operating cash flow and moderate capital infusion, Acko ended FY 2024 with a net cash outflow of ₹1.21 crore, further reducing its cash reserves to ₹1.82 crore from ₹3.04 crore. While the decline is less severe than in FY 2023, the ongoing negative cash balance suggests a tight liquidity position, heavily dependent on timely premium inflows and capital support.