Fintech platform Paytm announced that Paytm General Insurance Ltd. (PGIL), one of its associate entities, is abandoning its application for a general insurance license and redoubling its efforts to offer insurance through its fully owned subsidiary Paytm Insurance Broking Private Ltd. (PIBL). According to Paytm, OCL (One97 Communications Ltd.) can save Rs 950 crore in funds set aside for an investment in PGIL by withdrawing the application.
One97 announced in May 2022 that it would raise its ownership position in Paytm General Insurance Ltd. (PGIL) to 74 per cent by investing up to Rs 950 crore. Meanwhile, the company has said that Paytm Insurance Broking Private Limited (PIBPL), the company's wholly owned subsidiary, has increased its focus on insurance distribution to Paytm consumers, small merchants, and SMEs. The company intends to offer small-ticket, innovative insurance solutions across several general insurance categories that include health, motor, shop, life, and gadgets.
Some of the prominent insurance companies with which PIBPL has strengthened its partnership include Digit, Acko, ICICI Lombard, New India, Bajaj Allianz, Tata AIG, Aditya Birla Health, and Universal Sompo. As per its regulatory filing, a Paytm spokesperson said, “PIBPL brings affordable, easy-to-understand insurance products to our consumers and merchants, making their everyday lives easier. By focusing on small-ticket general insurance offerings and leveraging the strength of Paytm’s distribution, we are committed to increasing general insurance penetration to a wider audience.”
Read: Paytm Q4FY24 Results: Loss Expands to Rs 550 Crore, Revenue Drops 2.9% to Rs 2,267.10 Crore
Recently, Paytm also released its Q4 FY24 results, where the company reported a net loss of Rs 550 crore as compared to Rs 168.4 crore that was reported in the same quarter last year. Similarly, the company’s revenue from operations decreased to Rs 2,267 crore from Rs 2,334 crore in the same quarter last year. In a regulatory filing, the company said that its A4 results were impacted by the embargo in the Paytm Payments Bank and disruptions due to the UPI transition.
