ITI Reinsurance may kick off ops in October this year: Sources

CNBC-TV18 learns from sources that Sudhir Valia’s ITI Reinsurance, a subsidiary of Fortune Financial Services, will be starting operations in October 2016.ITI Reinsurance may get approval from Insurance Regulatory and Development Authority by September. It will start with Rs 500 crore initial cap. Like GIC, ITI Reinsurance will enjoy the right of first refusal. ITI will have the option to enter into transactions first before anyone else can.Reinsurance is insurance that is bought by an insurance company from one or more other insurance companies (the "reinsurer") directly or through a broker as a means of risk management.Sun Pharmaceutical’s Executive Director Sudhir Valia and family control Fortune Financial Services.At present, there is only one domestic reinsurer, General Insurance Corporation of India (GIC Re), which is public sector company.ITI Reinsurance & Fortune Fin Services did not respond To CNBC-TV18’s query.