Bajaj Finserv has taken the first formal step toward expanding its presence in the reinsurance business by confirming its proposal through an exchange filing dated July 31. The move begins a long-term regulatory process as the financial services company looks to strengthen its position in India’s evolving reinsurance market.
The announcement comes alongside strong financial performance. Operating revenue increased 19.1% year on year to INR 42,037 crore, while consolidated net profit rose 18.2% to INR 6,297 crore, reflecting continued growth across the business.
Corporate Structure and Market Context
Bajaj Finserv operates through multiple financial services businesses. Bajaj Finance, its lending arm, holds a 51.3% stake in the company and also owns 86.70% of Bajaj Housing Finance.
The Evolving Reinsurance Landscape
India’s reinsurance market has changed significantly since the Insurance Laws (Amendment) Act of 2015. The reforms ended the monopoly previously held by the General Insurance Corporation of India (GIC RE), which remains the country’s only domestic reinsurer required to receive a statutory cession of 4% of general insurance premiums.
Since the market opened to private players and foreign investors, several international reinsurers have entered India. While Mumbai is home to twelve international reinsurance branches, much of the recent growth has shifted to GIFT City.
Regulated by the International Financial Services Centres Authority, GIFT City has emerged as a major hub for offshore insurance operations. The number of insurance entities operating at the IFSC increased from 18 to 36 by March 31, 2026.
Among these, 22 are specialized reinsurance businesses. Recent entrants include Allianz, Generali, Lloyd’s, Peak Re, Saudi Re, Kuwait Re, Qatar Re, and Korean Re.
The expansion has also been been reflected in underwriting activity. Gross premiums underwritten by IFSC insurance offices increased from $160.79 million in FY25 to $648.68 million in FY26. Reinsurance accounted for most of this growth, with premiums rising from $147.13 million to $607.96 million during the same period.
The proposal represents Bajaj Finserv’s latest step toward strengthening its presence in India’s expanding reinsurance sector, which continues to attract both domestic and international participants following recent regulatory reforms.
