India's first private sector reinsurance company is set to commence operations soon.
Valueattics Re, promoted by Canadian businessman Prem Watsa’s FAL Corporation and Indian businessman Kamesh Goyal’s Oben Ventures, has received the R2 licence from the IRDAI, bringing it one step closer to commencing operations. The company will begin operations with a paid-up capital of INR210 crore($24.3m).
Currently, public sector GIC Re is the only reinsurance company operating in India. GIC Re was designated national reinsurer and has the advantage of the first right to refusal and obligatory cession. The Indian market currently has 13 foreign reinsurance branches.