Bajaj Finserv board approves plan to enter reinsurance business

Bajaj Finserv Ltd will enter the reinsurance business through a wholly owned subsidiary after its board approved the proposal on Thursday, subject to regulatory approvals, the company said in an exchange filing.

"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," the company said in the filing on Friday.

The announcement accompanied Bajaj Finserv's June-quarter results. Consolidated net profit rose 18.2% year-on-year to ₹6,297 crore, while revenue from operations increased 19.1% to ₹42,037 crore.

Bajaj Finserv already has a significant presence in insurance through its 77.33% stakes in Bajaj General Insurance and Bajaj Life Insurance, formerly operated as joint ventures with Allianz. It also has a 51.3% stake in lending arm Bajaj Finance.

A market opens up

The move would make Bajaj Finserv one of a small but growing group of private players in India's reinsurance market, which opened to private and foreign participation after the Insurance Laws (Amendment) Act, 2015, and subsequent regulations issued by the Insurance Regulatory and Development Authority of India (Irdai) ended General Insurance Corporation of India's monopoly.

GIC Re remains India's only domestic reinsurer and continues to receive a statutory obligatory cession—currently 4% of general insurance premiums—under the Insurance Act, 1938.

Foreign reinsurers have also expanded their presence since the market opened. Twelve foreign reinsurance branches now operate in India, most based in Mumbai.

Growth has been even stronger at Gujarat International Finance Tec-City (GIFT City), where the International Financial Services Centres Authority regulates offshore insurance operations. As of 31 March 2026, the IFSC housed 36 insurance entities, including 22 reinsurers, up from 18 entities a year earlier.

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 a year earlier, driven largely by reinsurance business. Reinsurance premiums increased to $607.96 million from $147.13 million over the same period.