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Ebix and Prudential in India +3

10:54 15-Dec-20


Ebix has issued press release on the launch of Prudential on its beta Indian insurance platform.  This is much-needed evidence on execution of the business plan in the country, and thus progress towards the EbixCash IPO.  It also gives a few metrics on the growth to date and work still to be done:
BSE Ebix also plans to offer other insurance products for Commercial Vehicles like Trucks, Tractor, Auto, Taxi; Commercial Products like fire, liability, shopkeeper insurance; and other Personal lines of business like Home, Personal accident, travel Insurance etc...  Currently, there are seven General Insurance companies, two standalone Health Insurer and three Life Insurance Companies on the BSE Ebix platform. As on date, BSE Ebix has registered over 8,000 Point of Sale Persons (PoSPs) out of which 4021 are certified and ready to do business. Since the commencement of the beta launch, the BSE Ebix Insurance has been growing over 35% month on month in terms of premiums since beta launch...  We are expanding our Product offerings and now present in Private car, Two-wheeler, health, Travel, Endowment and Term. We are also doing Employee benefits and other Commercial Products.
This makes it look like Ebix can get the IPO done in the two year window that I've estimated that it has left.  Daily pandemic cases, and more reliably, deaths, in India have come down just a little since the plateau I mentioned.  Regardless, I'm forced to admit that the country can easily afford the human toll and that Big Money is looking past the pandemic.  The rupee has been slowly recovering against the dollar since the spring, but that probably has more to do with dollar weakness; it is still only at $0.0136 yet at a low for the year against the euro: €0.0112.  The takeaway is that one should be prepared for short-term volatility, but like GLNG, EBIX dips below $40 (current price $35) now look like a limited-time opportunity that is well worth the risk.  To the extent that it continues to look like Ebix can get the IPO done, shares should eventually at least double.