Echo Re has received regulatory approval to open a reinsurance branch office in GIFT City, marking the Zurich-based reinsurer's first physical presence outside its headquarters and adding to the Indian hub's growing roster of global tenants.
The International Financial Services Centres Authority granted the approval on March 12, allowing Echo Re to establish operations in Gujarat International Finance Tec-City IFSC.
The company said it has maintained a presence in India's insurance market for more than a decade, during which it has built a treaty reinsurance portfolio across P&C and specialty lines.
Founded in 2008, Echo Re is a wholly owned subsidiary of Germany's DEVK Group, one of the country's largest mutual insurance groups. The reinsurer reported gross written premiums of $482 million in 2024, with Asia accounting for 61% of its book. It holds an 'A' financial strength rating from both S&P and Fitch.
The branch office places Echo Re in a zone that has attracted significant regulatory and fiscal support. India's Union Budget, announced in February, proposed extending the tax holiday for businesses operating in GIFT City's IFSC to 20 years from the previous 10.
After the tax-free period expires, entities face a concessional 15% corporate tax rate, well below the 25% to 35% charged elsewhere in the country. Reinsurance operations in the zone also benefit from GST exemptions on risk transfer and premium collection.
The regulatory environment has evolved in parallel. In 2023, the IRDAI removed the order of preference that had previously required Indian insurers to offer reinsurance opportunities to domestic players before approaching international reinsurers, opening the market to greater competition.
Around 14 reinsurers now operate out of GIFT City, managing annualized premiums between $700 million and $800 million. The zone hosts roughly 35 insurers, reinsurers and intermediaries in total, with IFSCA officials estimating the number of global reinsurers could reach 20 by March 2026.
Recent entrants include PartnerRe, Santam, Saudi Re and Korean Re, alongside earlier arrivals such as Everest Reinsurance.
CEO Fabian Pütz (pictured above) said the move reflects Echo Re's commitment to the Indian market and the broader subcontinent.
"It shows our great commitment to the Indian insurance market and provides a gateway to the wider Indian Subcontinent and beyond," he said, adding that the company plans to combine its local presence with established capabilities in Zurich.
CUO Paul Hertelendy described India as central to Echo Re's portfolio strategy and one of the world's most dynamic growth markets. Regional manager Swapnil Soni credited the IFSCA's regulatory framework and said the GIFT City office would help the company further strengthen its presence in the region.
In most jurisdictions, the IFSCA's registration milestone of over 1,000 entities across banking, reinsurance, asset management and leasing underscores the zone's rapid growth since its establishment.
