Asian News - India: First-ever local privately-held reinsurer obtains initial clearance
Source: Asia Insurance Review | Aug 2016
IRDAI has given its initial approval to ITI Reinsurance, the first-ever Indian private-sector reinsurance company.
ITI Reinsurance, owned by Fortune Financial Services which is controlled by Sun Pharma co-promoter Sudhir Valia, is the second local reinsurer in India, after state-owned GIC Re.
IRDAI has also granted initial approval to US-based life and health reinsurer, Reinsurance Group of America (RGA), to set up a branch in India. The reinsurer currently operates in India as a service company through its Ireland-based entity. Last year, the company did business of INR4.39 billion (US$65 million) in India, where it has 37% of the market share in the reinsurance segment.
Since the IRDAI announced its reinsurance regulations in November 2015, five global players have already received initial licences from IRDAI, including RGA. The other four are Munich Re and Hannover Re from Germany, Swiss Re from Switzerland and French major reinsurer SCOR. Lloyd’s of London has also obtained the initial clearance from the IRDAI. The reinsurance market in India is estimated to be worth US$2 billion a year.