Bajaj Finserv Ltd has won board approval to enter the reinsurance market through a new wholly owned subsidiary. The move is subject to regulatory clearance, as reported by the Livemint. If approved, Bajaj Finserv would become one of the few private domestic competitors to state-owned General Insurance Corporation of India (GIC Re).
The company disclosed the decision in an exchange filing alongside its June-quarter results. "Subject to the approval of the Insurance Regulatory and Development Authority of India (IRDAI) and other authorities, the Board has granted its approval for pursuing re-insurance business through a subsidiary of the company to be incorporated," Bajaj Finserv said in the filing obtained by the news outlet.
The filing's reference to a subsidiary "to be incorporated" suggests the company intends to seek a domestic reinsurer licence from the Insurance Regulatory and Development Authority of India (IRDAI). Such a licence carries IRDAI solvency and capital requirements. It would also allow the new entity to write reinsurance directly in the Indian market.
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For the quarter ending in June 30, the Mumbai-based group reported consolidated net profit rising 18.2% year-on-year to ₹6,297 crore. Revenue from operations rose 19.1% to ₹42,037 crore, the Livemint reported.
Bajaj Finserv holds 77.33% stakes in Bajaj General Insurance and Bajaj Life Insurance. Both were formerly operated as joint ventures with Allianz before the German insurer exited in 2025. The group also holds a 51.3% stake in lending arm Bajaj Finance.
India's reinsurance market opened to private and foreign participation under the Insurance Laws (Amendment) Act, 2015, and subsequent IRDAI regulations. The legislation ended GIC Re's long-standing monopoly. Under the Insurance Act, 1938, GIC Re retains a 4% obligatory cession from general insurance premiums.
Twelve foreign reinsurance branches now operate in India, most based in Mumbai. Bajaj Finserv's entry, if approved, would make it one of the first private domestic reinsurers to challenge GIC Re in its home market.
Growth has been fastest at GIFT City, where the International Financial Services Centres Authority (IFSCA) regulates offshore insurance operations. As of March 31, the IFSC housed 36 insurance entities, of which 22 were reinsurers. That figure was up from 18 a year earlier, the Livemint reported.
Recent entrants to GIFT City include Allianz, Generali, Lloyd's, Qatar Re, Korean Re, Kuwait Re, Peak Re and Saudi Re. Gross premiums underwritten by IFSC insurance offices rose to $648.68 million in FY26 from $160.79 million in FY25. Reinsurance premiums within the zone increased to $607.96 million from $147.13 million over the same period, per the Livemint.
The GIFT City expansion sits within a broader reform cycle. India's parliament in December 2025 raised the foreign direct investment cap in insurance from 74% to 100%, with the change taking effect in February 2026.
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