Value Attics Reinsurance Limited has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to operate as a reinsurer, making it the first private-sector reinsurance company in the country. This milestone ends the long-standing monopoly of the state-run General Insurance Corporation of India (GIC Re) and is expected to bring greater competition and innovation to the sector.
The approval was granted at IRDAI’s latest board meeting, which was the final session chaired by Debasish Panda before his term ended. The government has already begun the process of selecting his successor.
Value Attics is backed by Prem Watsa, the Indian-born Canadian billionaire investor known as “Canada’s Warren Buffett.” Watsa is the founder, chairman, and CEO of Fairfax Financial Holdings, a Toronto-based financial services firm specializing in insurance, reinsurance, and investment management. Over the decades, Watsa has built Fairfax into a global insurance powerhouse with operations in multiple countries, including the U.S., Canada, the U.K., and India.
In India, Watsa has been a key player in the insurance industry. He partnered with Kamlesh Goyal to launch Go Digit General Insurance and Go Digit Life Insurance, both of which have quickly gained traction in the Indian market. Go Digit General Insurance, founded in 2017, offers digital-first general insurance products, including motor, health, travel, and fire insurance. The company has been a disruptor in the sector with its simplified processes and customer-friendly policies. Go Digit Life Insurance, which launched later, focuses on affordable and transparent life insurance solutions.
Despite his significant involvement in India’s insurance sector, the new Value Attics Reinsurance venture will operate separately from Go Digit, focusing solely on reinsurance services. The company will begin operations with a paid-up capital of US$23 million and is expected to leverage Fairfax’s extensive global experience in reinsurance to underwrite significant risks.
Fairfax has made substantial investments in the Indian insurance market, including US$506 million in Go Digit General Insurance and $16 million in Go Digit Life Insurance. Since reinsurance is a more capital-intensive business than general or life insurance, analysts expect Fairfax to inject even greater financial backing into Value Attics in the coming years.
Globally, Fairfax Financial Holdings owns several major reinsurance firms, including:
Watsa’s foray into the reinsurance market follows a previous unsuccessful attempt to acquire ITI Reinsurance from Sudhir Valia. The IRDAI rejected the acquisition, citing concerns over license trading, which is prohibited under Indian regulations. Rather than pursuing acquisitions, Fairfax has opted to build Value Attics as a homegrown reinsurance company.
At the same IRDAI board meeting, regulators also reviewed the progress of implementing Risk-Based Capital norms and the adoption of Indian Accounting Standards (Ind AS) within the insurance sector. These initiatives aim to align India's regulatory framework with international financial reporting standards.
With its strong financial backing, experienced leadership, and a proven track record in the insurance industry, Value Attics Reinsurance is expected to play a major role in reshaping India’s reinsurance market. Its entry is anticipated to increase competition, drive innovation, and improve risk management strategies across the insurance ecosystem.
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