South Korea’s sole reinsurer Korean Re is seeking to set up a local entity in Switzerland to gain ground in the European reinsurance market, which is the world’s second biggest.

The company said on Thursday it aims to start operations at its Zurich branch in June 2019. This will be its second outpost in Europe after its Lloyd’s subsidiary in London, U.K.

“The Swiss entity will play a huge role in boosting our premium volume in Europe from the current $200 million to more than $300 million by 2025,” said a Korean Re official.

Europe is second to North America in the world’s reinsurance market with a 30 percent market share. At the center of Europe’s reinsurance industry is Switzerland, which is home to over 59 reinsurers.

Korean Re, which has no competitors in the local market, is seeking to expand its overseas presence. It said it is also awaiting approval from Chinese authorities for its Shanghai entity, for which it filed an application in November 2014. It expects to gain the final nod later this year or early next year.

The process in China usually takes two to three years but this has been delayed due to the leadership vacuum at the China Insurance Regulatory Commission since April last year, according to the company.

Shares of Korean Re closed Thursday down 1.37 percent at 10,800 won ($10.17).

By Kim Tae-sung and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]