French reinsurer AXA Re has eceived the second level of regulatory clearance (R2) from the IRDAI to set up a branch in India, that would be the reinsurer's first overseas branch.
The company is planning to complete its capital infusion plans in one month to receive the final round of regulatory clearance (R3) and begin underwriting business in the country by July, reported Press Trust of India.
AXA Re will join eight other multinational players for a pie in India's reinsurance market. The nine companies are expected to pump in close to INR5,000 crore (US$777 million) into their operations.
The other global reinsurers are: Swiss Re, Munich Re, Hannover Re, Lloyd’s, XL Catlin, RGA, Gen Re and SCOR. They have already started operations or received approvals from IRDAI.
AXA Re already has India exposure through an offshore business that has an existing portfolio of US$100-150 million focused on life and health. “With a direct branch in the country, we will expand our portfolio into other general insurance segments of the country,” said an AXA Re official.
AXA already has a major presence in the Indian insurance industry in the form of two joint ventures with Bharti — Bharti Axa Life and Bharti Axa General Insurance.