GIC Re searching for worldwide enlargement – MD

Mumbai-based Basic Insurance coverage Company Reinsurance (GIC Re) is actively working to increase its worldwide enterprise as a part of a technique to diversify its income sources, in line with its chairman and managing director, Ramaswamy Narayanan.

In an interview with CNBC-TV18, Narayanan revealed that whereas GIC Re has traditionally not targeted closely on rising its worldwide portfolio, the corporate is now seeking to solidify its presence in abroad markets.

“We have to get our worldwide credit standing to a stage the place we’re capable of entice and write the very best companies out there in that market,” Narayanan acknowledged, indicating a strategic pivot in direction of extra profitable and secure international insurance coverage alternatives.

For the present monetary yr, Narayanan projected that home operations would represent about 75% of GIC Re’s whole guide. Nonetheless, substantial development within the worldwide sector is anticipated to start ranging from fiscal yr 2026.

GIC Re’s monetary efficiency within the September to December 2023 interval highlighted some challenges, with a 13% year-on-year lower in gross premiums, an 18% drop in web premiums written, and a ten% decline in web premiums earned.

Regardless of these setbacks, Narayanan continues to be bullish a couple of restoration, anticipating a 10-12% enhance in web earned premiums for the present monetary yr.

The reinsurer has additionally been participating with worldwide markets by means of government-led roadshows in main monetary hubs akin to New York, Hong Kong, Singapore, and Dubai. These efforts have reportedly acquired optimistic suggestions from traders, probably bolstering GIC Re’s place in these markets.

Concerning possession, Narayanan famous that the Indian authorities is required to cut back its stake in GIC Re by simply over 10% to adjust to minimal public shareholding norms. The timing of this stake dilution depends on authorities decision-making processes, with expectations of decision probably after the elections.

GIC Re has a market capitalization of ₹59,456.62 crore and just lately loved market success, with its shares surging by 137% over the past yr.

What are your ideas on this story? Please be happy to share your feedback under.