Mumbai:
Despite not having a level playing field, some of the overseas multinational reinsurers, who are having branch operations in the country, have grown their business aggressively in 2018-19, which is these reinsurers’ second year of full operations.
Together, 10 foreign reinsurers, largely through property treaties, at Rs 9500 crore in 2018-19, have grown their business by 50 per cent from Rs 6216 crore in 2017-18 .
With GIC Re’s Rs 44, 237 crore, up 6 per cent, of premium in 2018-19, the Indian reinsurance market has grown by 11 per cent to Rs 53, 730 crore in 2018-19.
Leading the pack, Munich Re, the largest global reinsurer, has grown its total premium by 75 per cent to Rs 2285 crore, over Rs 1307 crore recorded in 2017-18.
The company , which reinsurers Reliance Industries, the largest private sector deal in India, has also collected a premium of Rs 37 crore from India’s neighbouring countries through its Indian branch.
Swiss Re, the second largest global reinsurer has moblilised a total premium of Rs 2276, up 11 per cent, in 2018-19
French major Axa, has managed to mop up a premium of Rs 1933 crore in 2018-19, which is company’s first full year of operations.
The company basically focuses on life and health business in its Indian operations.
XL Catlin, which has already merged with Axa , globally, still operates independently in the Indian market,as the insurance regulator IRDAI is yet to approve the merger in the country, has gathered a total premium of Rs 313 crore in 2018-19.
Another French major SCOR has ended FY 2018-19 with a total premium of Rs 1572 crore, 20 per cent over Rs 1307 crore in 2017-18..
Germany major Hannover Re has mobilised a premium of Rs 623 crore in 2018-19.
All these companies, though, had set up their direct operations during the fag end of FY 2017-18, had Indian exposure , which they were doing offshore.
Other global reinsurers like RGA, which only focuses on life and health , has a premium of Rs 199. crore,Warren Buffet’s Gen Re has a premium of Rs 194 crore.
Allianz , which received its Indian license in third quarter of FY 2018-19, has done a business of Rs 102 crore in the matter of couple of months.
However, Swiss Re at 48 per cent, tops chart in further reinsuring the largest amount of its Indian business , called a retrocession, followed by Hannover Re(46 per cent) (SCOR (45 per cent)Munich Re (38 per cent) in 2018-19.
Among the foreign reinsurers, Axa at one per cent, has the lowest retrocession in the country.
However GIC Re’s retrocession stand at 13 per cent during year.
No reinsurer is allowed to retrocede beyond 50 per cent of its business and Indian regulator encourages retention of Indian business in the country as it ensures less forex outflow and strengthen the domestic reinsurance sector.