Bajaj Finserv Board Approves Reinsurance Entry Plan

Bajaj Finserv, a big Indian financial company, decided to start a new business that helps other insurance companies share risk.

The company will do this through a new subsidiary that it will own completely.

It needs permission from the Insurance Regulatory and Development Authority of India and other regulators before it can start.

The board approved the plan after the company reported a 18.2% rise in profit and a 19.1% rise in revenue in the June quarter.

This move will make Bajaj Finserv one of the few private companies in India’s reinsurance market, which has recently opened up to private and foreign players.

Bajaj Finserv already owns large parts of two insurance companies and a lending arm, so this new venture fits into its existing business.

The company hopes the new reinsurance arm will diversify its income and strengthen its position in the insurance sector.

The plan is still pending regulatory approval, so it is not yet operational.

Once approved, the subsidiary will operate under the rules set by the IRDAI.