Santam, South Africa's largest short-term insurer, has received a license to establish a reinsurance branch office at GIFT City, India's first operational greenfield smart city and International Financial Services Centre (IFSC), as the hub continues to attract global reinsurance players.
The license was granted by the International Financial Services Centres Authority (IFSCA) in January 2026. Santam will operate the branch as an International Insurance Office (IIO), making it the first BRICS-based insurance company at GIFT City.
GIFT City has positioned itself as a regional center for insurance and reinsurance, with around 35 insurers, reinsurers, and intermediaries now operating there. Regulatory officials have estimated that the number of global reinsurers could rise to 20 by March 2026, up from 14.
Santam is not alone in its push into the IFSC. Saudi Re inaugurated its own GIFT City branch in January 2026, its second operational foothold in Asia after Malaysia. CEO Ahmed Al-Jabr said the company has operated in India for over a decade, with Asia accounting for 22% of Saudi Re's portfolio.
Abu Dhabi National Insurance Company is also planning a branch, with operations expected to begin in late 2026.
The moves come as India raises the stakes for foreign investment. Finance Minister Nirmala Sitharaman announced in the Union Budget 2025-26 an increase in the FDI limit for insurance from 74% to 100% for companies that invest the entire premium within India.
India's reinsurance market was valued at $19.2 billion in 2024 and is expected to reach $41.5 billion by 2033 at a CAGR of 8.92%, research from IMARC Group showed. Swiss Re has forecast insurance premium growth to accelerate to 6.9% over 2026-2030, outpacing China, the United States, and Western European markets.
The IIO will be backed by two units within the Santam Group. Santam Re, the group's non-life treaty reinsurer with operations across Africa, Asia, and Europe, will provide capacity across property, engineering, marine, and liability lines. Santam Specialist Solutions will contribute facultative reinsurance capabilities.
Kush Padia, Santam Re's interim CEO, said operating as a category two order of preference IIO reinsurer opens access to new programs.
Under India's Order of Preference framework – streamlined from six tiers to four by the IRDAI in 2023 – cedants must approach reinsurers in a prescribed sequence. Category two places GIFT City-based IIOs that reinvest 100% of retained Indian premiums domestically ahead of other IIOs and cross-border reinsurers, Chambers and Partners has detailed.
"This step aligns with the Santam Group's strategic objective to drive international expansion and broaden its treaty and facultative reinsurance footprint," Padia said.
The IIO will be managed by a locally sourced team and will write on AM Best "A-" rated paper.
Tavaziva Madzinga, Santam's group CEO, said the GIFT City license follows closely behind the company's approval to operate a syndicate at Lloyd's.
"As the Santam Group, we are broadening our international footprint and the GIFT City license gives us further global exposure," Madzinga said.
