PB Fintech Rallies 7% as Policybazaar Obtains IRDAI Approval for License Upgrade

19 Feb 2024 , 12:05 PM

PB Fintech Limited witnessed a remarkable surge of nearly 7% in its shares, reaching ₹993 on February 19, following the announcement that its wholly-owned subsidiary, Policybazaar Insurance Brokers, has secured approval from the Insurance Regulatory and Development Authority of India (IRDAI) to upgrade its license from a direct insurance broker to a composite insurance broker.

In a regulatory filing on February 16, PB Fintech highlighted the significance of this development, stating, ‘This will allow us to deepen the insurance penetration in the country by bringing more technology, process control and data analytics based innovation into re-insurance capacity.’

At 12.06, the counter was trading at ₹979.75, marking a substantial 5.20% increase from the previous close on the NSE. Over the last three months, the stock has recorded an impressive gain of 22% on the exchanges, reflecting investor optimism regarding the company’s growth prospects.

The October-December quarter marked a significant milestone for PB Fintech as the company returned to profitability for the first time, reporting a profit after tax of ₹37 Crore. This turnaround can be attributed to robust growth in insurance premiums, improved renewals with higher margins, and enhancements in contributing margins. This marks a notable reversal from the ₹87 Crore loss recorded in the third quarter of the previous fiscal year (FY23).