Till recently AXA group had only two separate branches, XL Se India branch and AXA France India branch and IRDA had asked the group to wind up operation of one of its branches
Hyderabad:
The insurance regulator IRDAI, after allowing overseas reinsurers to set up branches in India in 2017, has finally clarified that no group can have two separate foreign reinsurance branches(FRBs) in India.
“It is clarified that where the ‘applicant’ as defined under Regulation 2(b) of the IRDAI (Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) Regulations, 2015 falls within a group, no other entity of that group shall be eligible to apply for Certificate of Registration to act as Foreign Reinsurance Branch in India,’’ said SN Rajeswari, member(Distribution), IRDAI, in a circular on Thursday.
Till recently, AXA group had only two separate branches, XL Se India branch and AXA France India branch and IRDA had asked the group to wind up of its branches,.
Prior to the global merger- AXA group had acquired XL group in 2018- both the groups had their own FRBs in India and IRDA had allowed the group to operate separate entities in the country.
However, in the last week of January, IRDA had asked AXA group to shut down one of its branches and merge all the business of the closed branch with the other one.
Accordingly AXA Group had decided to shut down XL Se, which does Property and Casualty (P&C) business, and merge its business with AXA France India branch, which so far was doing life and health business.