The company’s consolidated profit after tax rose 165% year-on-year to Rs 135 crore, while margins expanded significantly. This was one of the best quarters since listing in November 2021.
Robust premium and revenue growth
The company’s total insurance premium stood at Rs 7,605 crore, up 40% year-on-year and 15% sequentially, supported by strong growth in the protection category. On an annualized basis, this translates into a total premium return of Rs 30,420 crore, underscoring PB Fintech’s growing scale in the online insurance market.
Within this, premiums for core online insurance rose by 34%, while new insurance business – including health and term life insurance – grew by 44%, with health insurance leading the way with a notable 60% year-on-year growth.
On the financial front, operating revenues rose 38% year-on-year to Rs 1,614 crore, driven by insurance revenues that grew 36%. The company’s adjusted EBITDA rose 180% year-on-year to Rs 156 crore, with margins doubling from 5% to 10%.
Revenue from renewal or follow-on business, a key indicator of long-term profitability, rose 39% year-on-year to an annual run rate of Rs 774 crore, driven by 47% growth in the insurance segment. Quarterly revenue from insurance renewals alone reached an ARR of Rs 758 crore, compared to Rs 516 crore last year.
Credit activities have reached a low point
The company’s credit sector, run under Paisabazaar, saw revenues fall 22% year-on-year to Rs 106 crore, although a sequential growth of 4% points to a recovery from earlier weakness in demand for unsecured loans. The total disbursement value for the quarter was Rs 2,280 crore for the core online business.
New initiatives and international expansion
PB Fintech’s newer businesses, including PB Partners (the insurance agent aggregator platform), continued to grow rapidly. Revenue from new initiatives grew 61% year-on-year, while losses fell sharply as adjusted EBITDA margins improved from -12% to -4%, now contributing 5% to total revenue.
PB Partners now has over 3.8 lakh advisors and operates across 19,000 PINs, covering 99% of India’s geography, with a deeper reach in Tier-4 and Tier-5 cities.
The company’s insurance business in the UAE also showed strong momentum, with premium growth of 64% year-on-year. It is now profitable for the third consecutive quarter, with a focus on health and life insurance, and cross-border products in the auto and health insurance segments.
Profitability and efficiency gains
Thanks to improved operating leverage and steady renewal revenue growth, PB Fintech’s PAT margin improved to 8%, compared to 4% a year earlier. The company now earns approximately 1.77% of total insurance premium as net profit, underscoring a significant improvement in efficiency.
The company said it maintained high levels of customer satisfaction with an insurance CSAT of 90.5%, reflecting its focus on after-sales service and claims support.
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