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Shares of PB Fintech, the parent company of Policybazaar, hit over a two-year high of Rs 1,400, rallying 7 per cent on the BSE in Wednesday’s intra-day trade. This came after ICICI Lombard, the private insurance major, entered into a strategic partnership with the company to offer its products on the Policybazzar’s platform.
Stocks of PB Fintech are trading at its highest level since November 2021. It had hit a record high of Rs 1,470 on November 17, 2021. At 09:21 am, the stock was trading 5 per cent higher at Rs 1,369.85, as compared to the 0.33 per cent rise in the S&P BSE Sensex. On the other hand, shares of ICICI Lombard General Insurance Company were quoting 1 per cent higher at Rs 1,713 on the BSE.
Policybazaar is one of India’s largest insurance platforms. It is the flagship platform of PB Fintech, which also owns the fintech brand, Paisabazaar.com, and lending and insurance platform in the UAE region, Policybazaar.ae While ICICI Lombard is the leading private general insurance company in the country. The company offers a comprehensive and well-diversified range of products through multiple distribution channels, including motor, health, crop, fire, personal accident, marine, engineering, and liability insurance.
The collaboration encompasses access to nearly 10 million customers with a wide range of insurance products, including motor insurance, health insurance, travel insurance, home insurance, and business insurance. The partnership entails inclusion across multiple business lines of the Policybazaar platform, policybazaar.com catering to retail audiences, PB for business for corporates and PB partners for channel partners.
“This partnership will bring ICICI Lombard's exceptional insurance products and customer experience to our customers. It also builds on our shared commitment to driving the vision of “Insurance for All by 2047” in the country,” the management of PB Fintech said.
Furthermore, in the past two months, the stock price of PB Fintech has zoomed 52 per cent as the company posted a net profit of Rs 37 crore in December 2023 (Q3FY24) against a net loss of Rs 87 crore a year ago. The company reported its first quarterly profit since listing, as growing demand for insurance boosted revenue.
In Q3 FY24, PB Fintech's revenue surged by 42.7 per cent on a YoY basis, driven by a growth of 44.3 per cent on a YoY basis in the insurance business and 35.5 per cent growth in credit business. EBITDA margins improved from -21.8 per cent to -2.9 per cent on a YoY basis, propelled by cost reductions in ESOPs, controlled employee and advertising expenses, resulting in significant operating leverage benefits.
Analysts believe that the company stands at a crucial juncture, driven by catalysts such as renewal commission growth, strategic expansion into tier-2/3 cities through offline channels, and rigorous cost management, all poised to generate favorable operating leverage. "Furthermore, the company has reported profitability for the first time, and we expect this momentum to continue, " an analyst at Keynote Capitals had said in a result update.
