GIC Re eyes increasing global premium

Country's sole reinsurer GIC Re plans to increase its global premium by operating in more geographies and increasing capacities over select lines of business, a top company official said today.
"Our operations in Dubai, Kuala Lumpur and London are poised to grow in business and profits. In India, we are prepared for the new brand of competition that would develop, as reinsurers would set up new branches and Lloyd's market would start operating from next financial year," GIC Re acting Chairman and Managing Director Sanath Kumar told PTI.
The domestic market will soon see major reinsurers starting their business once sectoral regulator Irdai finalises relevant regulations, he said.

"We have built up tremendous confidence among Indian cedents on our dependability in settling claims and hand holding new players through their initial period," he said.
According to the officer, GIC Re would touch a business figure of Rs 16,500 crore in 2015-16 as against Rs 15,184 crore in 2014-15.
Global premium for GIC Re at the end of September 2015 was Rs 8,415 crore from Rs 7,274 crore in the year-ago period, showing a growth of 15.50 per cent.

Kumar said losses of GIC Re in connection with the recent Chennai floods are yet to be quantified, though it would be around Rs 5,000 crore for the entire industry.

"In Chennai, the payments streams to direct insurers are yet to take place, but the industry losses are to the tune of Rs 5,000 crore. The loss to GIC Re is yet to be quantified and we have offered advance payments to those insurers who are severely hit by this catastrophe," he said.
GIC Re made an operating surplus of Rs 776 crore after taking into account the investment income from policyholders' funds, which was at Rs 1,200 crore in the year-ago period.
The investment income was lower at Rs 1,764 crore in first half of 2015-16 from Rs 2,115 crore in the corresponding period of 2014-15.

"There was a reduction in investment income due to market conditions," Kumar said.
The combined ratio continues to hover more than 100 per cent, which is more reflective of the domestic business, which comes with a higher combined ratio.
The net worth of the company is currently at Rs 40,000 crore.