PB Fintech , the parent company of Policybazaar and Paisabazaar, has reported robust financial results for the first quarter, showcasing significant growth in insurance premiums and improved profitability.

Key Highlights

Strong Performance in Insurance Segment

PB Fintech's insurance business demonstrated impressive growth, with total premiums reaching ₹6,616.00 crores, a 36% increase compared to the same quarter last year. The health insurance segment was particularly strong, growing by 65% year-on-year. This growth was primarily driven by new customers, with 82% of new business coming from first-time insurance buyers.

The company's core insurance revenue increased by 37%, reflecting the strong performance in this segment. Renewal and trail revenue on a rolling 12-month basis reached ₹725.00 crores, up 43% from the previous year, indicating strong customer retention and recurring revenue growth.

Improved Profitability

PB Fintech's focus on sustainable growth is reflected in its improved profitability metrics. The company's consolidated profit after tax increased significantly from ₹19.00 crores to ₹85.00 crores, with margins expanding from 2% to 6%. This improvement in profitability comes despite the company's continued investments in growth initiatives.

Challenges in Credit Business

While the insurance segment showed strong growth, the credit business faced challenges. Revenue in this segment declined by 22% year-on-year to ₹102.00 crores, amid industry-wide tightening. However, the company remains committed to improving this segment and expects growth to resume from the third quarter.

New Initiatives and International Expansion

PB Fintech's new initiatives showed improvement, with adjusted EBITDA margins moving from -12% to -6%. The company's UAE business achieved profitability for two consecutive quarters, growing at 68% year-on-year.

Long-term Vision

Despite short-term challenges in some segments, PB Fintech's management emphasized their focus on long-term growth. The company maintains its target of achieving ₹1 lakh crore in insurance premiums by 2030, highlighting its commitment to expanding insurance penetration in India.

Yashish Dahiya, Chairman & Group CEO of PB Fintech, commented on the results, saying, "Our team's continued focus on what is right for the consumer, while delivering on our plans, has been instrumental in achieving these strong results. We are particularly encouraged by the growth in our health insurance segment and the improving profitability of our new initiatives."

As PB Fintech continues to innovate and expand its offerings, including potential forays into mutual funds and other financial products, the company appears well-positioned to capitalize on the growing demand for digital financial services in India.

PB FinTech , the parent company of Policybazaar, a leading insurance aggregator, has reported a significant increase in motor insurance claims during the monsoon season, highlighting the importance of comprehensive coverage for vehicle owners.

Key Findings

• Motor insurance claims increased by 33% during the monsoon season
• Average claim amounts rose from ₹30,000.00 to ₹40,000.00
• Only 20% of vehicle owners have engine protection add-ons
• Roadside assistance adoption reached 75% among customers
• Non-metro areas accounted for 74-75% of monsoon claims

Claim Patterns and Vehicle Types

The report reveals interesting patterns in motor insurance claims across different vehicle types:

Year-on-Year Growth

Motor insurance claims have shown consistent growth:

• 3.20% increase
• 9.40% increase
• Total growth of 12.90% over two years

Monsoon-Related Risks

The surge in claims during the monsoon season is primarily attributed to engine failure and electrical damage caused by waterlogging. Despite the high risk, 80% of vehicle owners remain exposed to these expensive monsoon-related damages due to a lack of engine protection add-ons.

Urban vs. Non-Metro Claims

Interestingly, while metro cities reported the highest number of incidents, non-metro areas accounted for the majority of monsoon claims. Non-metro regions contributed to 74-75% of monsoon-related claims.

Recommendations from Policybazaar

In light of these findings, Policybazaar emphasizes the need for vehicle owners to adopt essential add-ons to their motor insurance policies. These include:

1. Engine protection
2. Roadside assistance
3. Zero depreciation cover

By incorporating these add-ons, vehicle owners can better protect themselves against the financial risks associated with monsoon-related damages and ensure more comprehensive coverage for their vehicles.

The significant increase in claims and average claim amounts underscores the importance of adequate insurance coverage, especially during challenging weather conditions. As climate patterns continue to evolve, it becomes crucial for vehicle owners to reassess their insurance needs and consider additional protections to safeguard their investments.