GIC Re to foray into US market

At a time when global reinsurers are lining up to open their branches in the country, state-owned reinsurer GIC Re has decided to make a foray into the US, world's largest general insurance market.
"We are also in the process of having a branch operation in the US. It is fiercely competitive yet a profitable market," GIC Re chairman and managing director A K Roy told PTI.
GIC Re has already established a sound base in SAARC countries, Africa and Latin America.
GIC Re's global operations contribute 50 per cent of its premium income and the US operations will help strengthen its global presence.

"Soon we will have a branch operation in Brazil and through our new acquisition in South Africa, we would like to be the market leader in Africa," Roy said adding "our plan to acquire a syndicate is very much on and it would be completed after getting the right company. The company has to be available for us to buy out and it should suit our budget."
The global reinsurance is growing highly competitive. Only those will survive who are big. Survival for smaller companies going to be more difficult now, he said.

GIC Re is repositioning itself in the Indian market after the Insurance Ordinance allowed the entry of global reinsurers into the country.

"Considering the future Indian growth scenario and slow revival of global growth, we are working out strategies to increase our exposure in the Indian market beyond the current 50 per cent level. If Indian economy can grow at 7-8 per cent, the domestic general insurance industry can expand at 15-20 per cent, pushing the country's reinsurance market growth to over 30 per cent y-o-y," Roy said.
The insurance ordinance allows the global reinsurers to open their branches in the country.
"All the global reinsurers are already present in the country with their representative offices. They are doing the business for past two decades even without having branches. We will be competing with them. So, there is nothing new for us in the ordinance. We have rather welcomed their arrival on our soil with branches," he said.