The Insurance Regulatory and Development Authority of India (IRDAI) has granted regulatory approval to Go Digit founder and chairman Kamlesh Goyal-backed Valueattics Reinsurance Ltd to operate as a reinsurer. 

This makes Valueattics Reinsurance the first private sector company to receive the reinsurance licence. As of now, state-owned General Insurance Corporation of India (GIC Re) is the only reinsurer in the country.

The approval came during IRDAI's board meeting last week, which was Debasish Panda’s last meeting as IRDAI chairperson. “This marks a significant step in fostering competition within the reinsurance sector,” IRDAI said in a statement. 

"Approval was accorded to grant Certificate of Registration to Valueattics Reinsurance Ltd. It is the first reinsurer to be granted registration to carry out exclusively reinsurance business in the revamped regulatory landscape. It marks a significant step in fostering competition in the reinsurance sector,” the regulator said.

With 'R2' approval, Valueattics is one step closer to commencing reinsurance operations. A reinsurer offers insurance to other insurance companies. However, it can only start operations once it meets the requirement of bringing in the necessary initial capital.

Valueattics is expected to launch operations with an initial paid-up capital of Rs 210 crore, according to media reports. 

Valueattics Reinsurance is owned by Goyal-promoted Oben Ventures LLP, and FAL Corporation, backed by Watsa with Fairfax Financial Holdings.

With this development, Goyal and Prem Watsa’s Fairfax Financial Holdings (investor in both Valueattics and Go Digit) will become the first promoters in the country to hold licences for general insurance, life insurance and reinsurance businesses.  With this, the Digit group of companies aims to become a one-stop solution for all insurance needs.

Recently, Go Digit also invested Rs 30 crore in Dr. Reddy’s Laboratories for a 0.32% stake in the pharmaceutical major.