Policybazaar parent PB Fintech's Q2 FY25 profits soar on the back of insurance premiums
During the quarter, PB Fintech reported total insurance premiums at Rs 5,450 crore, with core online insurance premiums up by 61% and new health and life insurance premiums rising an impressive 69% YoY.
PB Fintech, the parent of digital insurance platform Policybazaar, reported a 43.81% year-over-year (YoY) jump in operational revenue to Rs 1,167 crore and profit after tax reaching Rs 51 crore, marking a turnaround from a Rs 21.11 crore loss incurred in the same period last year.
While PB fintech's Q2 FY25 revenue grew by 15.5% sequentially from Rs 1,010.5 crore in the quarter ended June 30, 2024, profits fell by 15%.
PB Fintech’s total expenses rose 30.44% to Rs 1,213 crore in Q2, up from Rs 930 crore a year ago. Employee benefit expenses, the company’s largest cost, increased by 20% YoY to Rs 507.57 crore, compared with Rs 423 crore incurred a year earlier. Meanwhile, advertising and promotion expenses, the second-largest cost, climbed 12.38% YoY to Rs 278 crore.
Most of its revenues came from insurance brokerage services, earning the company Rs 998 crore in Q2, up 58% YoY. The brokerage segment made a profit of Rs 141 crore in Q2—a 5X growth from the July-September 2023 quarter.
During Q2 FY25, PB Fintech reported total insurance premiums of Rs 5,450 crore, with core online insurance premiums up by 61% and new health and life insurance premiums rising an impressive 69% YoY. The company noted that its renewal/trail revenue reached an annual run rate (ARR) of Rs 633 crore, reflecting a 45% growth from Rs 436 crore in the prior year’s quarter. It highlighted that this revenue typically operates at over 85% margins, serving as a significant driver of profit growth.
In terms of its credit business, PB Fintech faced a year-over-year revenue decline of 8%, although revenues rose 9% sequentially. The credit business, which remains adjusted EBITDA positive since December 2022, achieved an ARR of Rs 17,000 crore in credit disbursals and approximately 5.8 lakh credit card issuances. The company stated in the filing that over 75% of credit card applications were processed entirely digitally, with more than 75% of loan disbursals coming from existing customers.
The company’s “New Initiatives” segment also showed strong performance, with revenue growth of 87% YoY. This segment’s adjusted EBITDA margin improved by 14 percentage points, moving from -26% to -12%.
PB Fintech’s UAE business saw insurance premiums rising by 63% YoY, the company said.
Edited by Kanishk Singh