PB Fintech, the parent company of the renowned insurance aggregator Policybazaar, has reported a significant turnaround in its financial performance for the second quarter of fiscal year 2023-24 (Q2FY24). The company disclosed a net loss of ₹21 crore during this period, marking an impressive 89% reduction compared to the net loss of ₹187 crore reported in the corresponding quarter of the previous year.
During this quarter, PB Fintech did really well in its main online business. They made a lot more money, with their revenue going up by 46% compared to last year, reaching ₹597 crore. This big increase in revenue shows that more people are using digital insurance services, and the company is good at meeting that demand.
In the domain of insurance, PB Fintech reported a notable surge in its health and term insurance business. This segment, which is a pivotal component of its long-term value, experienced a remarkable 53% year-on-year growth in new premiums for Q2FY24. “Our health and term insurance business, which is a bulk of our long-term value, witnessed 53 percent YoY growth in new premium for Q2FY24, which is the highest in the last 7 quarters,” the company said, adding that its total insurance premium for the quarter was ₹3,475 crore.
The company also placed a spotlight on its robust renewal or trail revenue, which is now at an annual recurring revenue (ARR) of ₹436 crore, a substantial increase from the ₹294 crore reported in the same quarter of the previous fiscal year. This segment operates with over 85% margins, making it a significant contributor to the company’s overall profit growth
PB Fintech’s credit business has been a noteworthy success story. The company announced that its credit business achieved “adjusted EBITDA positive” status since December 2022. Furthermore, PB Fintech has achieved an annualized run rate of ₹16,500 crore in disbursals, and it issued approximately 6 lakh credit cards on an annualized basis. This demonstrates the continued success and growth in its credit operations and positions PB Fintech as a significant player in the digital credit space.
In terms of market performance, on November 3, the scrip of PB Fintech, the parent company of Policybazaar, settled at ₹702.60 apiece on the BSE. This represented a modest 0.4% increase compared to the previous day’s closing price.