South African short-term insurance company Santam has been approved to set up a reinsurance branch in the Gujarat International Financial Technology City (GIFT City), India’s first operational greenfield smart city and International Financial Services Center (IFSC).
Santam Limited will operate the branch as an International Insurance Office (IIO) regulated by the International Financial Services Center Authority (IFSCA).
The group’s independent non-life treaty reinsurer, Santam Re, will provide underwriting capabilities across property, engineering, marine and liability lines.
Meanwhile, Santam Expert Solutions underwrites large, medium and complex risks across diverse industries in Africa and other emerging markets, and the company will add ad hoc reinsurance expertise to provide customized risk placement solutions in complex and niche market segments.
The IIO will reportedly be managed by a team of locally recruited insurance professionals responsible for maintaining Santam’s governance framework and rigorous risk management approach.
With the launch of IIO (which will be written on the AM Best “A-” rating paper), Santam becomes the first BRICS insurance company to operate in GIFT City.
Kush Padia, interim CEO of Santam Re, commented: “This move is in line with Santam Group’s strategic objective to drive international expansion and expand its international treaty and faculties reinsurance business footprint.
“GIFT City is well connected to both local and international markets and we intend to leverage our position to continue growing our books both within India and abroad.
“IIO Reinsurance has launched a new reinsurance program as a Category 2 priority, strengthening our position in the market.
“An additional benefit of this license is that it demonstrates Santam’s continued investment in India and we have been serving this market with reliable capacity for more than a decade. Cedents is positive about this as it evaluates its panels.”
Santam Group CEO Tavaziva Madzinga noted that the award of the Gift City license comes on the heels of the company’s final approval from its operating syndicate at Lloyd’s, all of which reinforces its ambitions for international growth.
Madzinga added: “As Santam Group, we are expanding our international footprint and the Gift City license enables us to further expand our global presence. Santam Group brings over a century of insurance expertise, capabilities and approach to the Indian market.”
GIFT City has quickly emerged as a regional insurance and reinsurance hub, attracting an increasing number of international reinsurers and brokers seeking access to India’s expanding market and favorable regulatory regime.
Prateek Singhal, executive chairman and head of reinsurance at Howden India, said in an interview last year that the country’s reinsurance industry is expected to see significant growth in 2026. He pointed to supportive government initiatives, the issuance of new insurance licenses and the continued development of GIFT City as a pioneering financial center as key growth drivers.
The Ministry of Industry and Internal Trade Promotion also recently officially liberalized the Indian insurance industry, allowing up to 100% foreign direct investment (FDI) under the automatic route.
The move marks a significant shift in ownership policies for insurance companies operating in the country and is expected to further spur foreign participation.