PB Fintech Posts First Quarterly Profit Since Listing on Insurance Boost

Online insurance aggregator PB Fintech, the parent company of Policybazaar, reported its first quarterly profit since listing on the stock exchange. The firm recorded a consolidated net profit of INR 380.5 million ($4.58 million) in the quarter ended December 31, 2023, compared to a loss of INR 873 million in the same period the previous year. This turnaround in performance was driven by increased demand for insurance, which led to a 39% rise in revenue from its core online business. The company had listed over three years ago and had been aiming to become profitable by relying on heavy marketing spends to boost sales.

Key Takeaways:

• PB Fintech, the parent company of Policybazaar, reported its first quarterly profit since listing, recording a net profit of INR 380.5 million in Q4 2023.
• Revenue from its core online business of Policybazaar and Paisabazaar rose 39% to INR 5.93 billion, while revenue from operations increased nearly 43% to INR 8.71 billion.
• New premium for health and term insurance business grew 44% during the quarter.
• Total costs rose nearly 21%, but advertising and promotion expenses decreased by 28% from the previous year.

Peer digital payments firm Paytm also reported a narrower loss in the December quarter. PB Fintech’s shares closed 1% higher ahead of the earnings release, and they had surged 77% in 2023, while Paytm had gained 20%.The encouraging results from PB Fintech demonstrate the positive impact of increased demand for insurance on the company’s financial performance. The rise in revenue from Policybazaar and Paisabazaar highlights the effectiveness of the online business model in the insurance aggregator sector. Additionally, the growth in new premium for health and term insurance indicates the strong demand for these products, reflecting a growing awareness of the importance of insurance coverage. The decline in advertising and promotion expenses suggests that previous marketing investments have paid off, contributing to the company’s profitability. PB Fintech’s successful quarter is a positive sign for the online insurance industry as a whole, demonstrating the potential for profitability and growth in this sector.