In our recent meeting with Policy Bazaar Fintech’s (PB Fintech) management, the key focus was on their commitment to maintaining both quality and productivity. The company expressed confidence in achieving its growth targets while noting that there have been no significant shifts in the competitive landscape. The Paisabazaar and POSP segments are showing promising signs of improvement in profitability. However, it was mentioned that the growth of the POSP business might be adjusted or calibrated to ensure a balanced approach. Retain Add rating with a fair value of Rs 850.
PB Fintech reported a 66% premium growth in FY2023 and 24% y-o-y in 1QFY24. The company remains confident of a 30% or higher growth trajectory. The secular shift to online insurance assistance continues. Of its customers, 80% who seek online assistance (browse insurance online) to buy insurance policies, visit its website; however, only 5-50% may eventually close the transaction with the company.