In a move to have seamless access to reinsurance capacity, Ireland-based global reinsurance firm Xl Catlin has decided to enter into Indian market soon. The company has begun the licensing process to establish a reinsurance branch in India. Xl Catlin reinsurance companies are among the world’s leading reinsurers, who offer products of aerospace, property, casualty, marine, specialty etc.
“The decision to pursue market entry into India aligns with Xl Catlin’s strategy of establishing a presence in emerging and developing markets where economic activity is increasing and the reinsurance market would benefit from its global expertise,” said a top official of the company.
Commenting on the entry into India, Greg Hendrick, Xl Catlin’s Chief Executive (Reinsurance Segment) said, “I am extremely pleased to have Brendan Plessis, Head of Emerging Markets, leading our team effort to establish a business in India. The development we are seeing there means that the market represents significant opportunities for Xl Catlin. I believe that we have what it takes to respond to the reinsurance needs of companies and brokers in this vast growing economy.”
The application has been filed with the Insurance Regulatory Development Authority of India (IRDAI) and the company has sought to establish a reinsurance branch office of Xl Insurance Company SE (XlICSE). Pending all necessary regulatory approvals, the company expects to be able to commence operations in India later this year.
“We find that in India there is a huge desire to have seamless access to reinsurance capacity. The local market needs a reinsurer with global scale and technical capabilities, with underwriters based locally who understand the risks and can offer breadth of product,” Hendrick added.
India has seen significant economic development over recent years, leading it to overtake China in terms of gross domestic product (GDP) growth across 2015. Economic reforms and improved infrastructure have led to a growing middleclass and increased private consumption, which in turn benefits the local economy and helps to raise living standards.
However, Mike McGavick, Xl Catlin’s Chief Executive Officer (CEO) said, “The reinsurance market in India is primed for development. This is the right time for us, and getting the right people on the ground, offering the right solutions will define our success. Traditionally, the reinsurance market has been under-represented in the region, but we are now in a position to be in the first tier of global foreign reinsurers opening owned branches in India. Meeting the regulatory requirements is a key priority for us, as we move forward to demonstrate our commitment to this growing market.”
Xl Catlin has had service operations in India since opening its first offices there in Gurgaon in 2004, delivering a range of business support services. In addition to a representative office in Mumbai, Xl Catlin also has representatives spread across offices in Gurgaon and Bengaluru as well.