Saudi Reinsurance Company (Saudi Re) yesterday launched a branch in Gujarat International Finance Tec-City (GIFT City) in Mumbai, having obtained the approval of the Saudi Insurance Authority and the relevant Indian authorities to open the branch to conduct reinsurance business.
Officially announcing the launch yesterday, Saudi Re CEO Ahmed Al-Jabr said, “This market has been strategically important for Saudi Re. We have been present in the Indian market for more than a decade. Now it is Saudi Re’s largest market outside of our home market. Opening a branch at the GIFT city comes as part of a wider expansion strategy for Saudi Re. It reinforces our commitment to serving our valued clients in the Indian market. We want to add value by developing first-class security, diversifying reinsurance capacity and building collaboration between our two markets.”
The reinsurer said that the company has been operating in the Indian market through its headquarters in Riyadh and seeks to strengthen its presence in the Indian market. This step comes in light of newly introduced regulations in the Indian insurance market, which give priority to local companies and international branches established in India.
Mr Al-Jabr also said that it is a natural development for the company to launch a branch in India because it has been a very favourable market for Saudi Re. He said, “The Asian market is a key growth engine for Saudi Re as the region accounts for more than 25% of its portfolio, with India positioned in the centre.” He added that expansion is part of the reinsurer’s strategy towards achieving its aspiration in becoming among the top 50 global reinsurers.
Presenting some of Saudi Re’s achievements in the past year, Mr Al-Jabr referred to the Public Investment Fund’s strategic investment in the company, a key indication of Saudi Re's solid status and long-term potential. In addition, Saudi Re stands as a regional leader offering the highest capitalisation among Middle East reinsurance companies of SAR1.7bn ($453.3m), with strong financial ratings upgraded to ‘A2’ by Moody’s and affirmed ‘A’ by S&P with a positive outlook.
Established in 2008, Saudi Re is the first reinsurance company headquartered in Saudi Arabia. It has developed regional roots and international reach. The reinsurer also has a branch in Labuan, Malaysia, which started operations in 2014. Saudi Re serves more than 40 countries spanning the Middle East, Asia, Africa and the Lloyd’s market in the UK, with 42% of its operations generated from international business.
The announcement was made at a dinner held at Grand Hyatt Mumbai. The Saudi consul in Mumbai and several guests from the (re)insurance industry attended the dinner.