US Reinsurance Group Gets Initial Nod To Set Up India Branch: Report
US-based Reinsurance Group of America (RGA) has received a first level approval from the Insurance Regulatory and Development Authority of India (Irdai) to set up a branch in the country, a company official said on Friday.
Insurance regulator Irdai has approved the R-1 (requisition for registration) application of the company. The nod was given by the regulator at its board meeting held in Hyderabad on Thursday, the official said.
The company will now apply for final approval – R-2, which is likely to be cleared by Irdai during its next board meeting, the official added.
RGA managing director and chief executive-India, Sri Lanka and Bangladesh Thomas Mathew, was not immediately available for comment.
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At present, the company is providing reinsurance cover to 23 of the 24 life insurance firms in the country, including state-owned behemoth LIC (Life Insurance Corporation). It also provides reinsurance cover to four life insurance companies in Sri Lanka.
The US-based life and health reinsurer has clients in over 60 countries. It is the global market leader in life reinsurance with a total revenue of $10.4 billion and assets of $50.4 billion in 2015.
RGA is currently operating in the country as a service company through its Ireland-based entity.
Last year, the company did a business of Rs 439 crore in India, where it has 37 per cent of the market share in the reinsurance segment. The company follows the January to December fiscal year