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PB Fintech sets 1,000-day target to rework business model amid insurance distribution reforms

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PB Fintech sets 1,000-day target to rework business model amid insurance distribution reforms

PB Fintech sets 1,000-day target to rework business model amid insurance distribution reforms

The proposed distribution reforms remain a key concern for the company despite a healthy quarterly performance, with net profit and EBITDA beating estimates. Management has indicated that it is working towards evolving the business while maintaining its customer proposition, but has not yet outlined the measures it intends to take

Net profit rose to Rs 192 crore, beating estimates by 13%, while EBITDA margin expanded 25 basis points to 9.92%. Insurance platform premiums grew 38% year on year to Rs 9,385 crore, with core insurance premiums rising 46%. Management expects some moderation in protection insurance premium growth in the second half due to a higher base following the GST cut. Paisabazaar's overall disbursals fell 45%, but core disbursals grew 22%; Nomura retained its Neutral rating and Rs 1,100 target price.

PB Fintech management has set an internal target of 1,000 days to evolve its business amid proposed changes to insurance distribution regulations. The company plans to maintain its standards on customer proposition while aligning with the regulator's objectives. Details of the changes it intends to make are yet to be disclosed, leaving investors awaiting greater clarity on the potential impact of the reforms on its business model. The proposed distribution reforms remain a key concern for the company despite a healthy quarterly performance, with net profit and EBITDA beating estimates. Management has indicated that it is working towards evolving the business while maintaining its customer proposition, but has not yet outlined the measures it intends to take, according to a report by Nomura.


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