In a significant development for the insurance aggregator market, PB Fintech , the parent company of Policybazaar, is facing a substantial reduction in commissions from health and general insurers. The insurance providers have reportedly decided to cut commissions paid to Policybazaar by 18%, a move that could have notable implications for the fintech company's revenue stream.

Potential Impact on PB Fintech

This commission cut may affect PB Fintech's revenue, particularly from the sale of health insurance policies through its subsidiary, Policybazaar. The reduction in commissions could potentially lead to:

1. Decreased revenue from health insurance policy sales
2. Pressure on profit margins
3. Need for strategic adjustments in the company's business model

Industry Implications

The decision by health and general insurers to reduce commissions may reflect broader trends in the insurance sector:

• Insurers seeking to optimize costs
• Changing dynamics in the insurance distribution landscape
• Potential shift in the relationship between insurers and digital aggregators

Market Response

Investors and market analysts may be watching closely to see how PB Fintech responds to this challenge. Potential areas of focus could include:

• The company's ability to diversify revenue streams
• Strategies to maintain growth despite reduced commissions
• Possible renegotiations with insurance partners

While the full impact of this commission cut remains to be seen, it underscores the evolving nature of the fintech and insurance sectors in India. PB Fintech, as a key player in the online insurance marketplace, may need to navigate these changes carefully to maintain its market position and financial health.

As the situation develops, stakeholders will likely be keen to see any official statements from PB Fintech addressing this issue and outlining their plans to adapt to these new circumstances.

PB FinTech , the parent company of Policybazaar and Paisabazaar, has reported a strong financial performance for the second quarter of fiscal year 2025-26, showcasing significant growth across key metrics.

Premium Growth and Revenue Performance

The company reported a total premium of ₹7,605.00 crores for Q2, marking a 40% year-on-year increase and a 15% quarter-on-quarter growth. This impressive growth was primarily driven by:

• Online protection business growth of 44% year-on-year
• Health insurance growth of 60% year-on-year

The consolidated revenue saw a robust increase of 38% year-on-year, reaching ₹1,614.00 crores. The core insurance revenue, a key component of the business, grew by 36% compared to the same quarter last year.

Profitability Improvement

PB FinTech's profitability showed remarkable improvement:

• Consolidated profit after tax (PAT) increased by 165% year-on-year to ₹135.00 crores
• PAT margin improved from 4% to 8%
• PAT as a percentage of insurance premium stood at 1.77%

Segment Performance

Insurance Business

• Policybazaar's core insurance revenue grew by 47% year-on-year
• Quarterly insurance renewals revenue reached an annualized run rate (ARR) of ₹758.00 crores, up from ₹516.00 crores in Q2 last year

Credit Business

• Core credit revenue declined 22% year-on-year but showed signs of recovery with 4% quarter-on-quarter growth
• Core credit disbursals grew 9% quarter-on-quarter, indicating a potential bottoming out of the segment

New Initiatives

• Revenue from new initiatives grew by 61% year-on-year
• Adjusted EBITDA margins for new initiatives improved from -12% to -4%
• Contribution margin for new initiatives reached 5%

PB Partners and International Expansion

• PB Partners, the company's agent aggregator platform, now boasts over 380,000 advisors across 19,000 PIN codes
• The platform is driving growth from Tier 4 and Tier 5 towns
• UAE insurance premium grew by 64% year-on-year and remained profitable for three consecutive quarters

Management Commentary

Yashish Dahiya, Chairman & Group CEO of PB FinTech, commented on the results: "Our focus on execution and adaptability was evident in our response to the GST changes implemented in September. We found solutions quickly, ensuring our sales remained strong despite the regulatory shift."

Future Outlook

The management expressed confidence in constructive discussions with insurance partners regarding commission structures in light of recent GST changes. They also highlighted their commitment to growth while maintaining cost efficiency across operations.

Conclusion

PB FinTech's Q2 FY2026 results demonstrate the company's resilience and growth potential in the evolving fintech landscape. With strong performance across its core insurance business and promising developments in new initiatives, the company appears well-positioned for continued success in the coming quarters.

Note: All financial figures are in Indian Rupees (₹).