Hanover, Germany - The German reinsurance company Hannover Re said it had signed an exclusive cooperation agreement in Mumbai Friday with India's government-owned reinsurer, GIC Re.

The two companies are to jointly develop, market and underwrite life-reinsurance business in India, initially for five years.

A statement quoted Hannover Life Re executive Wolf Becke saying, "While Hannover Re will enjoy faster access to the vigorously expanding Indian market, GIC Re will profit from our long-standing expertise in life reinsurance."

Hannover Re, based in the German city of Hanover, would establish a service company in Mumbai, although Indian business would continue to be underwritten from the company's head office in Germany. (dpa)