RGA looks to capture life insurance reinsurance market in India

It received the R1 or initial approval to set up a branch in India yesterday

Reinsurance Group of America (RGA) which has received the R1 or initial approval to set up a branch in India yesterday, is looking to expand business in the life insurance space in the country.

It joins four other foreign reinsurers including Swiss Re, Hannover Re, SCOR and Munich Re who have received the R1 license.

Thomas Mathew, MD & CEO, India, Sri Lanka and Bangladesh?, RGA Services India said that they as a global entity were keen to be present in India and hence they have applied for a branch licence.

"Once we receive official communication on the R1 licence from the regulator, we will make the necessary submissions and preparations for the R2 licence," said Mathew.

Mathew said that Reinsurance Group of America (RGA) is the global market leader in life and health insurance.

In India, they are present indirectly for last 15 years through their Irish entity RGA International Ireland.

Mathew said that in India, they have about 35% of market share. He explained that the total market of reinsurance premium ceded per year (life insurance) is Rs 1,200 crore and last year they did Rs 439 crore.

"We have 23 clients in India, including Life Insurance Corporation of India. Once we have a branch, we will have focused operations and would be able to offer better servicing to our clients," he said.

RGA is globally strong in actuarial and underwriting talent, according to him.

The branch that will be set up in India will be a branch of the Canadian entity (RGA Life Reinsurance Company of Canada).