PB Fintech’s quarterly profit more than doubled as its digital insurance platform, Policybazaar, benefitted from higher demand for health and life insurance after last year’s tax cuts.
The company on Monday also discussed pursuing inorganic growth opportunities through strategic investments and acquisitions and said it would consider raising funds through a so-called qualified institutional placement of shares on February 5.
India’s insurance industry has grown at a robust pace as authorities push for inclusive coverage, which helps online insurance marketplaces like Policybazaar.
Retail insurance demand also got a fillip in the December quarter, supported mainly by the cut in taxes on life and health insurance products to zero from 18% earlier.
PB Fintech, which also operates credit marketplace Paisabazaar, reported a consolidated net profit surge of 165% to 1.89 billion rupees ($20.66 million) in the quarter ended December 31 from 715 million rupees a year earlier.
The firm’s revenue from operations rose 37% to 17.71 billion rupees in the quarter, with insurance broking, its largest segment, growing 39% to 15.74 billion rupees.
Insurance premiums rose 45%, led by a 68% rise in new health insurance and life insurance premiums.
Reuters
