T A Ramalingam, CEO, Value Attics Reinsurance

Ramalingam, who completed his stint with BAGIC, after serving the insurer for over 20 years, in March end, has taken over his new assignment on Thursday

Mumbai: T A Ramalingam, former senior president of Bajaj Allianz General Insurance, has been appointed as the CEO of the first ever Indian reinsurance company – Value Attics Reinsurance Limited- set up by Canadian billionaire Prem Watsa’s Fairfax group and Kamesh Goyal, who have also promoted Go Digit General Insurance and Go Digit Life Insurance.

Ramalingam, who completed his stint with BAGIC, after serving the insurer for over 20 years, in March end, has taken over his new assignment today.

“Yes, I have joined Value Attics Reinsurance today,’’ confirmed Ramalingam, who will be based out of Pune.

The reinsurer has started with an initial paid-up capital of Rs 210 crore to begin operations.

Value Attics Reinsurance, which was the only private sector company to get a license in the last board meeting of regulator IRDAI, held on March 12, will be competing other reinsurers like state owned GIC Re and 12 foreign reinsurance branches (FRBs) , set up by global reinsurance giants and new set of reinsurance companies who are operating from the GIFT –IFSC, regulated by unified regulator IFSCA.

“It is the first reinsurer to be granted registration to carry out exclusively reinsurance business in the revamped regulatory landscape. It marks a significant step in fostering competition in the reinsurance sector,” the IRDAI had said.

However, it is not clear yet whether Value Attics Reinsurance will be eligible for obligatory reinsurance business, which is now only transacted with GIC Re, by the Indian general insurers.

Also the promoters have to infuse more capital into Value Attics as reinsurance is a capital intensive business. The reinsurer will have to also get ratings before it gets reinsurance placements from the domestic general insurance companies.

Value Attics was incorporated on Dec 20, 2017.

Fairfax subsidiary FAL Corporation will be the majority stakeholder of Valueattics Reinsurance Limited,. Fairfax Financial Holdings Limited, a holding company through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance.

Oben Ventures LLP (promoted by Kamesh Goyal) and FAL Corporation (backed by Prem Watsa with Fairfax Financial Holdings Limited as its ultimate parent company) will be the promoters of Valueattics Re.