GIC Re posts 21% growth in gross premium for FY16

Has proposed a dividend of 200% of share capital amounting to Rs 860 cr for FY16

State-owned sole General Insurance Corporation of India (GIC Re) has posted 21.4% growth in gross premium collecting Rs 18,436 crore.

The premium split between the domestic and overseas business during 2015-16 was 55% and 45% respectively. The net profit stood at Rs 2848.39 crore for FY16 as compared to Rs 2693.72 crore in FY15.

Alice G Vaidyan, chairman and managing director, GIC Re said that from this year onwards, they will focus on life insurance business in India. Further, she said that they would also concentrate on newer segments like cyber liability and agri-insurance.

"We have been a major contributor to schemes like Pradhan Mantri Fasal Bima Yojana and this will show positive results," she said. GIC Re is one of the entities that is proposed to be listed as per a budget announcement by the government. While Vaidyan did not comment on the listing details including how much stake will be sold, she said that they are ready for the listing process.

GIC Re has proposed a dividend of 200% of share capital amounting to Rs 860 crore for FY16. In FY16, the total investments of GIC Re rose to Rs 79,554 crore and the net-worth stood at Rs 38,281 crore which includes Rs 23,451 crore of fair value change account.

GIC Re is also planning to enter the Lloyd's of London which is the specialist insurance market with syndicates writing business of risks from across the world. Vaidyan said that the recent Brexit decision will have no impact on their plans to enter this market.