Valueattics Reinsurance, backed by Fairfax, has secured reinsurance licence approval from the Insurance Regulatory and Development Authority of India (IRDAI).
This makes the company the first reinsurer to receive registration to exclusively conduct reinsurance operations in the country’s “revamped regulatory landscape”, the insurance watchdog noted in a statement.
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“It marks a significant step in fostering competition in the reinsurance sector,” the IRDAI release added.
For fiscal year 2024–25, IRDAI also named Life Insurance Corporation of India, New India Assurance Company and General Insurance Corporation of India as Domestic Systemically Important Insurers (D-SIIs).
Valueattics Re will begin with paid-up capital of approximately Rs2.1bn, reported the Business Standard.
Goyal told the publication: “There was a long-standing need to have private reinsurance players in India, and becoming India’s first private reinsurer marks a significant milestone for us. With this, the Digit group of companies (general insurance, life insurance and reinsurance) will strive to become a one-stop solution for all insurance needs, allowing us to provide full-spectrum risk coverage.”
Currently, foreign reinsurance branches of multiple global reinsurers are operating in the country, including Swiss Re, Munich Re and Lloyd’s of London.
In 2016, IRDAI issued the certificate of registration to ITI Reinsurance to conduct reinsurance business but the licence was revoked owing to its failure to begin business operations.
