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FRANKFURT, Germany – German reinsurer Hannover Re AG said Friday that it will join forces with India’s GIC Re in the fast-growing Indian market.

Hannover Re and Indian government-owned GIC will cooperate on developing, marketing and underwriting life reinsurance in India, but financial details were not disclosed.

Reinsurers sell backup coverage to other insurers, spreading risk so the system can handle large or widespread losses.

Under the five-year agreement, the two companies will try to capitalize on India’s huge population and a rapidly growing middle class, which Hanover said has “immense business potential in the medium term.”

“While Hannover Re will enjoy faster access to the vigorously expanding Indian market, GIC Re, which has its roots in non-life reinsurance will profit from our long-standing expertise in life reinsurance,” said Wolf Becke, chief executive of Hannover Life Re.

Hannover Re also said that it would establish a service company in Mumbai, which is expected to start work later this year, but that Indian business would be underwritten from Germany. The office is expected to begin business activities later this year.

Hannover Re is one of the world’s five biggest reinsurers.
Source CNBC