homemarket NewsPB Fintech shares rise 7% as Policybazaar gets regulator's nod to sell reinsurance products
PB Fintech shares rise 7% as Policybazaar gets regulator's nod to sell reinsurance products
With the upgraded license, Policybazaar is set to expand its service offerings into risk management, facilitating the sale of reinsurance products, and managing claims data.
Shares of PB Fintech witnessed a surge of 7% on Monday, February 19, reaching ₹996.35 on BSE. This uptick followed the announcement that its wholly-owned subsidiary, Policybazaar Insurance Brokers, had received in-principle approval from the Insurance Regulatory and Development Authority of India (IRDAI) to elevate its license from a direct insurance broker to a composite insurance broker.
At the time of writing this report, the shares were trading 5.77% higher at 985.65 on BSE.
In a regulatory filing on February 16, the company highlighted, "The in-principle approval will allow us to deepen the insurance penetration in the country by bringing more technology, process control, and data analytics-based innovation into reinsurance capacity."
Notably, a composite insurance broker has the authority to sell reinsurance products in addition to general and life insurance products.
With the upgraded license, Policybazaar is set to expand its service offerings into risk management, facilitating the sale of reinsurance products, and managing claims data.
As a direct insurance broker, Policybazaar was previously restricted to engaging in life and general insurance broking.
It's important to note that this is an in-principle approval, and the final approval is still pending.
Citi, in response to the development, has issued a 'buy' call with a target of ₹1,150/ per share.
The brokerage firm foresees PB Fintech being in a favourable position within the reinsurance broking industry.
Citi expects the company to witness a multi-fold increase in market share in existing businesses, especially with the potential to operate in reinsurance broking.
(Edited by : Amrita)
First Published: Feb 19, 2024 10:58 AM IST
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