South Africa-based insurer Hollard is one step closer to applying for a licence to operate in the lucrative Indian market after winning approval to set up an office.

CEO Nic Kohler says the group already has a distribution network in India but is pursuing a bigger share in the market.

“We have received approval to open a representative office in India, which is the first step towards getting a licence which can be anything between two and three years from now,” he said.

Hollard is aiming to boost the proportion of the group’s revenue from overseas operations to 50% by 2015, Mr Kohler said.

Offshore revenue currently contributes about 15% to Hollard’s balance sheet. The company is South Africa’s largest privately owned insurer.

Hollard is also looking at other African markets, China and “neglected” European markets such as Poland.

The Indian market is regarded as having similarities to the African market but with greater room for expansion in the insurance and banking sector.

Hollard, which has operated in Australia for 10 years, recently signed a deal with Woolworths to distribute its products through the retailer’s 3882 stores and to its 4.6 million loyalty card-holders.

Mr Kohler says the Australian business had 500,000 customers and increased turnover in the year to June 30 by 23% to $431 million.

Australian profits doubled to $90 million and Hollard had recovered its initial $15.56 million investment, he said.