Edelweiss Life Insurance likely to break even by FY27: MD & CEO Sumit Rai

The private sector insurer has been incurring losses and remains reliant on capital infusion from its Indian parent, which in FY25 infused Rs 200 crore into the company

Edelweiss Life Insurance, a joint venture between Edelweiss Financial Services and Tokio Marine Nichido, is likely to break even by financial year 2027 (FY27), almost a decade and a half after it started operations as a life insurance company in the country, its MD and CEO Sumit Rai said.

 

The private sector insurer has been incurring losses and is reliant on capital infusion by its Indian parent, which in financial year 2025 (FY25) has infused ₹200 crore of capital into the company.

 

“We should break even by FY26-27. Till that point of time, I think we will need capital infusion. But, once we break even, I don’t think we will need much capital,” Rai said.

 

Initially, the firm had targeted to break-even within six years of launch. However, the life insurance industry witnessed a decline and post that the Covid-19 pandemic also impacted the target of the life insurer.

 

According to Rai, both these events affected the strategies of the company.

 

As of December 2024, the net loss of the life insurer had expanded to ₹133.26 crore from ₹119.24 crore last year. The total premium of the insurer stood at ₹1,205.22 crore as of December 2024, compared to ₹1,124.69 crore in the year ago period.

 

“We currently have a balanced mix of 50:50 between our proprietary and partnership channels. Our goal is to maintain this mix so that we are effectively able to leverage our existing network while also expanding our reach through strategic partnerships,” Rai said.

 

The product portfolio of the life insurer is more inclined towards traditional products and the company expects to continue with this strategy as it enables long-term value creation.

 

“We are also focused on enhancing persistency, which is a critical profitability driver. Trust is a critical parameter in our industry and therefore we want to monitor the quality of our customer engagements across transactions and touch points. We will closely monitor the trends in our Net Promoter Score, and continue to make the required enhancements in the back and front end as required,” Rai added.

 

The new business premium of the life insurer in April-February period of FY25 stood at nearly ₹460 crore and expects to close the year with about ₹565-570 crore.