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General Insurance Corporation of India.

BSE: 540755 Sector: Financials
NSE: GICRE ISIN Code: INE481Y01014
BSE 00:00 | 30 Sep 122.95 1.65






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OPEN 119.05
VOLUME 10435
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P/E 6.22
Mkt Cap.(Rs cr) 21,570
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OPEN 119.05
CLOSE 121.30
VOLUME 10435
52-Week high 152.60
52-Week low 107.60
P/E 6.22
Mkt Cap.(Rs cr) 21,570
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

General Insurance Corporation of India. (GICRE) - Director Report

Company director report

To the Members

The Directors have pleasure in presenting the Forty Ninth Annual Report on the workingand affairs of the Corporation along with the audited statements of account for the yearended 31st March 2021.


The highlights of the financial results for the year under review are as under:

( ` in crore)

Particulars 2020-21 2019-20
1. Gross Premium 47014.38 51030.13
2. Net Premium 42197.50 46655.41
3. Net Earned Premium 39865.89 44145.43
4. Net Incurred Claims 36853.75 43035.86
% to Earned Premium 92.40 % 97.50%
5. Net Commission 7984.39 7508.35
% to Earned Premium 20.00% 17.00%
6. Operating Expenses and Other Outgo less Other Income 480.90 (51.02)
7. Investment Income Apportioned to Revenue less expenses 6824.20 5558.61
8. Premium Deficiency 35.30 19.42
9. Total Profit/Loss (-) (3+7-4-5-6-8) 1335.75 (808.57)
10.Interest Dividends & Rents (net) and Profit on sale of Investments 1996.66 1566.88
11.Other Income less Other Outgo (117.46) 43.50
12. Reserve for Doubtful Debts and Investment including Amortization of Investments Written off and diminution in the value of investments written off 51.57 1247.78
13.Profit before Tax (9+10+11-12) 3163.38 (445.97)
14.Provision for tax including deferred taxes 1242.94 (86.88)
15.Profit after Tax (13-14) 1920.44 (359.09)

(Net Earned Premium is arrived after adjustments for Reserve for Unexpired Risks)(Percentages relate to the net earned premium of the corresponding year) (Obligatorysessions from Domestic Insurance Companies reduced from 10% to 5% w.e.f. 01.04.13 videIRDA/NL/RI/41/2012-13 date 3rdMarch 2013)


In view of the inordinate prolongation of the COVID-19 circumstances and the need forconserving capital the Board of Directors have not recommended any dividend for FY2020-21.

In accordance with the Regulation 43A of Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 (the ListingRegulations) the Corporation has formulated a dividend distribution policy and the sameis available on the website of the Corporation at


Capital and Funds of the Corporation stood at ` 99190.22 Crore as on 31stMarch 2021 as against ` 93359.13 Crore in the previous year the details of which aregiven below: (` in Crore)

Particulars As on 31.03.2021 As on 31.03.2020
Shareholders’ Funds (Net Worth)
Paid up Capital 877.20 877.20
General Reserve 15885.38 15885.38
Profit & Loss a/c* 4164.03 2243.59
Share Premium Account 1544.07 1544.07
Total 22470.68 20550.24
Less: Deferred Tax Assets 18.33 20.79
Net worth 22452.34 20529.45
Policyholders’ Funds 76737.88 72829.68
Total Funds 99190.22 93359.13

*Profit & Loss account` 1920.44 Crore (Previous year ` (359.09) Crore) withoutmaking adjustment for dividend dividend distribution tax.

Net worth (Shareholders’ Funds) for the last 5 years


Total assets of the Corporation were ` 134661.22 Crore as on 31st March2021 as compared to ` 116196.20 Crore as on 31st March 2020.


As per the provision of Section 129 (2) of the Companies Act 2013 at every AnnualGeneral Meeting of a company the Board of Directors of the company shall lay before suchmeeting financial statements for the financial year. Section 129 (3) of the Companies Act2013 provides that where a company has one or more subsidiaries it shall in addition tofinancial statements provided under sub-section (2) of Section 129 prepare a consolidatedfinancial statements of the company and of all the subsidiaries in the same form andmanner as that of its own which shall also be laid before the Annual General Meeting ofthe company along with the laying of its financial statements under sub-section (2) ofSection 129.


The Corporation is preparing Consolidated Financial Statements as it has threesubsidiaries namely GIC Re South Africa Limited GIC Re India Corporate Member LimitedUK and GIC Perestrakhovanie LLC Moscow apart from three Associate Companies namelyAgriculture Insurance Company of India Ltd. (AICIL) India International Insurance Pte.Ltd. Singapore and GIC Bhutan Re Ltd.


Global rating agency A M Best revised the Financial Strength Rating (FSR) to B++ (Good)from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to"bbb+" from "a-" of the Corporation in July 2020. The outlook of theFSR has been revised to stable from negative whilst the Long-Term ICR outlook is negative.These Credit Ratings (ratings) reflect the Corporation’s balance sheet strengthwhich AM Best categorizes as strong as well as its adequate operating performancefavourable business profile and appropriate enterprise risk management (ERM).

CARE Ratings Limited has issued ‘AAA (Is)’ Issuer Rating for the Corporationin December 2020 with a stable outlook. The rating reflects the Corporation’sstrategic importance as the dominant Indian reinsurer with comfortable liquidity positionand moderation in asset quality. Ownership by Government of India experienced managementand diversified business profile are key rating sensitivities.

During the year 2020 the Corporation was ranked 11th by Standard &Poor’s in the Top 40 Global Reinsurance Groups Ranked by Net Reinsurance PremiumsWritten in year 2019.

A M Best also ranked the Corporation as 12th in the Top 50 World’sLargest Reinsurance Groups based on Gross Written Premium in year 2019.


The Solvency Margin of the Corporation as on 31st March 2021 stood at 1.74as against 1.53 in the previous year.


The book value of the investment of the Corporation in India (representing investmentloans & deposits) amount to ` 68798.54 Crore as on 31st March 2021 asagainst ` 58756.58 Crore in the previous year. The Investment Income of ` 8443.55 Crorewere apportioned to Policyholders & Shareholders as under: (` in Crore)

Particulars 2020-21 2019-20
Apportioned to Policyholders (PH) 6531.93 5294.62
Apportioned to Shareholders (SH) 1911.62 1492.48

*Ratio of PH/SH 77.36/22.64

The mean yield on funds with profit on sale of investments stood at 13.24% (Previousyear 12.16%). The percentage of net NPA (Non-Performing Assets) to Gross loan assets(including Government Securities) was NIL (Previous year 0.63%).


The Corporation being a Reinsurance Company its working and functions are governed bythe Insurance Regulatory and Development Authority of India (IRDAI). TheCorporation’s existing paid-up equity capital of ` 877.20 Crore conforms to thespecifications of the IRDAI. The Accounts of the Corporation are drawn up according to thestipulations prescribed in the IRDAI (Preparation of Financial Statements andAuditor’s Report) Regulations 2002. IRDAI has identified the Corporation as aDomestic Systemically Important Insurer (D-SII) in July 2020 as per the framework put inplace for identification & monitoring of the operations of Domestic SystemicallyImportant Insurers.


IRDAI vide letter dated 25th February 2019 approved the continuation of theexisting Structured Solutions Contract. Following IRDAI approval two lines of businessmade cessions to the contract i.e. Aviation from 1st April 2019 on XOL basisattached to the 2018-2019 contract year and cessions in respect of Non-Marine Domestic onXOL basis from 1st June 2019 were ceded to the 2019-2020 year of contract.Thereafter no cessions were made from any class of business. The contract continues to belive in respect of certain run-off business. The Corporation and the reinsurers willmaintain all contractual rights and obligations arising out of the contract and towardsstatutory dues till the final closure at a mutually agreed date after both parties agreeto the net balance quantum.


The provisions of Section 186(4) of the Companies Act 2013

(the Act) requiring disclosure in the financial statements of the full particulars ofthe loans given investment made or guarantee given or security provided and the purposefor which the loan or guarantee or security are proposed to be utilised by the recipientof the loan or guarantee or security are not applicable to the Corporation.


There are no significant and/or Regulators or Courts or Tribunals impacting the goingconcern status of future operations of the Corporation.


The Corporation has in place a robust ERM policy. The policy defines a Governancestructure as well as the roles and responsibilities at each level. The ERM department isheaded by the Chief Risk Officer (CRO) who reports to the Board Risk Management Committeethrough the Chairman and Managing Director (CMD) and Management-level ERM committee.

ERM department conducts risk assessment with the assistance of the Risk and MitigationPlan Owners (RMOs) primarily Scale V level officers where new risks are brought fordiscussion and thereafter the entire risk universe is re-calibrated with the objective ofprioritization for mitigation. During the exercise RMOs also propose controls/ mitigationplans which post deliberations are implemented. The ERM department conducts periodicreview of the risk universe and checks the control effectiveness. ERM Department informsthese developments and deviations to the Management and Board Risk Management Committees.

As part of its allied activities the ERM department reviews the Business ContinuityPlan (BCP) and Business Impact Assessment (BIA) which aims at providing continuity ofservices at a defined minimum acceptable level of critical functions to safeguard thefinancial competitive and reputational position in the short and medium term.

During the year under review a neutral Third-Party Consultant was appointed forcarrying out the Stress Test Exercise of GIC Re.

The annual Stress Test Exercise was carried out for the financial Year 2020-21 based onfinancial data as on 31st March of 2020.

The Stress Test Exercise evaluated scenarios of significant threats to the futurefinancial condition and found it to be adequately resilient. The Stress Test Report waspresented to the Board and subsequently shared with IRDAI.

The Standard Operating Procedures (SOP) is already in place for two key functions ofthe Corporation viz: Reinsurance and Investment and their related accounting activitiesand the same are modified on need basis as per user department requests with the approvalof the Corporation’s Enterprise Risk Management Committee.

An Anti-Fraud Policy framed by the Corporation which covers prevention identificationinvestigation and reporting of frauds is reviewed every year. Corporation has declared‘Zero Tolerance’ to any non-compliance to the terms and conditions of theAnti-Fraud Policy. ERM department as part of compliance files the Fraud Monitoring Returnswith the Regulator.

This year was exceptional and the Corporation had to face many challenges due tooutbreak of COVID-19 pandemic. By invoking Business Continuity Plan (BCP) in lockdownperiod critical users along orders passed by the with other users were able to work fromhome. This led to smooth functioning of the core activities of the Corporation.


The Corporation is having a Corporate Social Responsibility Policy (CSR Policy)indicating the activities to be undertaken by the Corporation which has been approved bythe Board.

The CSR Policy may be accessed on the Corporation’s website at the link:

The CSR Reporting as per Section 135 of the Companies Act 2013 given in Annexure I.


Pursuant to Section 129(3) of the Companies Act 2013 read with Rule 5 of the Companies(Accounts) Rules 2014 a separate statement containing salient features of the FinancialStatements of Subsidiary Associate and Joint Venture Companies in Form AOC-1 forms partof the Directors’ Report for the financial year 2020-21 as Annexure-II and thedetails on their performance & financial position are given in Management Discussion& Analysis Report.

Further in terms of proviso to Section 136(1) of the Companies Act 2013 andRegulation 46 of the Listing Regulations 2015 the Corporation will place separateaudited Financial Statements in respect of each of its Subsidiary Company on its websiteand also provide a copy to any Shareholder of the Corporation who seeks the same. TheFinancial Statements of the Subsidiary Companies will also be kept open for inspection atthe registered offices of the Corporation/ the respective Subsidiary Companies.


M/s. J. Singh & Associates Chartered Accountants and M/s D. R. Mohnot & Co.Chartered Accountants were appointed as Joint Statutory Auditors to audit the accounts ofthe Corporation for the General of financial India under Section 139 and Section 143 ofthe Companies Act 2013.

The Auditors Report does not contain any qualification reservation or adverse remark.


The Board has reappointed M/s. S. N. Ananthasubramanian & Co. Company Secretariesto conduct Secretarial Audit for the financial year 2020-21.

The Secretarial Audit Report does not contain any qualification reservation or adverseremark except that the Board of Directors of the Corporation comprised of five Directorsas against the requirement of atleast six Directors under Regulation 17 (1) (c) of theListing Regulations and since the Chairman of the Corporation is an Executive Directoratleast half of the Board strength needs to be Independent Directors as against thepresent position of two Independent Directors out of five Directors as required underRegulation 17 (1) (b) of the Listing Regulations and IRDAI (Corporate Governance)Guidelines 2016. In this regard the Corporation being a Government Company is under theadministrative control of Ministry of Finance("MoF") and the Directors areappointed by President of India acting through MoF. The Corporation has been constantlypursuing the matter with MoF for ensuring compliance with composition of Board ofDirectors. Pursuant to Section 204 of the Companies Act 2013 the Secretarial AuditReport of the Corporation is given in Annexure III.


Pursuant to Section 92(3) read with Section 134(3)(a) of the Companies Act 2013 acopy of the Annual Return for the year ended 31st March 2021 with theinformation available up to the date of this report is placed on the website of theCorporation at andshall be further updated as soon as possible but no later than sixty days from the date ofthe Annual General Meeting.


The Corporation has annexed to this report Annexure IV a certificate obtainedfrom the Practicing Company Secretary regarding compliance of conditions of CorporateGovernance as stipulated in SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015.


The operations and future prospects of the Corporation are dealt in the ManagementDiscussion and Analysis Report which forms part of the Directors’ Report.


The particulars of Foreign Exchange earnings/outgo as required by the Companies(Accounts) Rules 2014 is given below:

i) Earnings ` 5164.71 Crore

ii) Outgo ` 5249.69 Crore

The earnings included all receipts denominated in foreign currencies in respect ofpremium recovery of claims outward commission and investment earnings.

The outgo comprised all payments in foreign currency in respect of outward premiumclaims on reinsurance accepted commission and expenses of management (bank charges).

Expenses on

(a) Entertainment

(b) Foreign Tours and

(c) Publicity and Advertisement amounted to ` 11791/- ` 1823021/- and `28234704/- respectively for the year under review.


The Corporation is not engaged in any manufacturing activity and as such there are noparticulars to disclose under the Companies (Accounts) Rules 2014 as regards Conservationof Energy or Technology Absorption.


I. Staff position as on 31st March 2021

Class I - Officers464
Class III - Clerical Employees 58
TOTAL - 522

II. Composition of Scheduled Castes and Scheduled Tribes in the Employee Strength

Cadre Total Employee Strength


SC % ST %
Officers 464 77 16.60 27 5.82
Clerical Staff 58 11 18.97 9 15.52
Sub-Staff 0 0 0.00 0 0.00
Total 522 88 16.86 36 6.90

III. Welfare of SC/ST/OBC:

The Corporation has framed rules as per the National Policy on Reservations for SC/ST& OBC which allows reservations concessions/relaxations to SC/ST & OBC inrecruitment and promotions wherever applicable. Special in-house training classes areconducted for employees who are in promotion zone in order to enable them to acquireknowledge and perform better in the pre-promotional written examination. The Corporationalso organizes On-line training for SC/ST candidates who apply for the RecruitmentExamination on All India Basis.


The Corporation has been employing women employees in various cadres in all officeswithin India and abroad. The Corporation has in place a policy against Sexual Harassmentin line with the requirement of The Sexual Harassment of Women At Work Place (PreventionProhibition and Redressal) Act 2013. All employees are covered under the policy. Therehas been no complaint from any employee during the financial year 2020-21 and hence nocomplaint is outstanding for redressal as at 31st March 2021.


In spite of trying times due to pandemic during the year under review the Corporationimproved its performance in implementation of Official Language Policy of the Governmentof India and complied with all the guidelines issued by the Ministry from time to time. Asmandated by the Official Language Policy of the Government discipline inspections ofDepartments situated in head office online inspections of liaison offices carried out bythe officials of Official Language One In-house workshop was organized and four meetingsof Official Language Implementation Committee were conducted during the year. Apart fromthe regular translation work translation of Financial Standing Order (FSO) ProcurementGuidelines SOP of OSD Department Request for Proposal (RFP) of Actuarial Department andAnnual Report of 2019-20 etc. were carried out.

In-house quarterly journal KSHITIJ was published regularly in digital form. It was alsomade available on Corporation’s website. During Hindi fortnight various competitionswere organized. To avoid the gathering based on the instructions given by the Ministrycultural programme on the Hindi Day was not organised and the cash prizes were transferredthrough NEFT after the announcement of the prize winner’s name of the competitions bythe mail.

Almost all Officers and Employees are having working knowledge of Official Language.

Hindi typing facility through UNICODE is available on computers to enable the Officersand Employees to do their day-to-day work in Hindi.

Officials of GIC have attended online all Town Official Language ImplementationCommittee (TOLIC) meetings and participation was also assured in various programmesorganized under the aegis of the Town Official Language Implementation Committee (TOLIC).Official Language Department of GIC was awarded a prize for Hindi In-house magazineKSHITIJ by TOLIC.


The Vigilance Department of the Corporation is headed by a Chief Vigilance Officer(CVO) in the rank of General Manager. The emphasis of the Vigilance Department is onpreventive vigilance. The department also focuses on various systems improvementinitiatives.

The focus of the Corporation in concurrence with CVC guidelines is to take proactivesteps to avoid a vigilance-like situation. Audit reports are studied and remarks made byAuditors are analyzed. Surprise inspections are conducted periodically and lapses studiedfrom a vigilance angle. Based on this suggestions are made for improvement of systems andprocedures of the Corporation. The purpose is to focus and accept vigilance as anorganizational objective and create an atmosphere conducive to "Zero corruption"functioning with role clarity and clear sense of direction. To improve vigilanceadministration CVO and other officers also participate in the vigilance trainingprograms/workshops conducted by reputed organizations. Periodical discussions are heldwith the officials of various departments/companies to ensure financial and office andimbibe a culture of value and ethics in the Corporation.


The main objective of the Internal Audit is to keep strict control over all theactivities of any organization with a view to facilitate management assurance of theauthenticity of the financial records efficiency of operations of the firm and tostrengthen the overall governance mechanism. The Corporation has its systems and controlsin place covering all major areas of operations such as Underwriting Investment Financeand IT system.

To accomplish its objectives in a systematic and disciplined manner Internal AuditDepartment (IAD) has utilized the services of professional audit firms. During theFinancial Year 2020-21 M/s Kailash Chand Jain & Co. Chartered Accountants werere-appointed as Internal Auditors for Reinsurance Operations and Business Accounts and M/sGokhale & Sathe Chartered Accountants were re-appointed as Internal Auditors forInvestment Operations and other departments.

The IAD also appointed Internal Auditors for foreign branches of the Corporation inLondon Dubai and Malaysia as also conducted the audit of International Financial ServiceCentre Insurance Offices (IIO) at GIFT City.

Besides the above the following special audits were also arranged by the IAD:

1. Secretarial Audit 4. Audit of Indian Nuclear Insurance Pool
2. RTI Audit 5. Audit of Indian Market Terrorism Risk Insurance Pool
3. Audit of FAIR Nat CAT Pool 6. IRMSP Audit (Investment Risk Management Systems & Processes)

IAD liaised with Comptroller & Auditor General of India (CAG) and variousdepartments for matters relating to CAG audit. The status of Draft Paras (DPs) andInspection Reports (IRs) issued by Comptroller & Auditor General of India (CAG) wasplaced before the Board and the Audit Committee of the Board from time to time. The IADfunctions independently under the supervision of the Audit Committee of the Board. TheAudit Reports of GIC Re Head Office and Foreign branches are placed before the AuditCommittee of the Board for their consideration and directions. Six (6) meetings of theAudit Committee of the Board were held during the year 2020-21. Action Taken Reports werepresented to the Audit Committee to update them on the status of progress on theimplementation of the directions of the Committee.

During the year the guidelines and scope of audit for appointment of Internal Auditorsof GIC Re for Reinsurance was reviewed keeping in view the evolving role of auditors in ascenario where Corporate Governance regulatory compliance management reporting systemstransparency and prevention of fraud has gained increasing importance. Like every yearemphasis was laid on core business activities and audit of Reinsurance underwritingoperations settlement of outstanding accounts & reconciliations of broker balancesTreaty acceptances Cash Call settlements and Settlement of Accounts were audited onconcurrent basis. Other departments like Human Resources IT Communication GeneralAccounts Office Services etc. were also covered during the year. Besides majorexpenditures incurred both Revenue and Capital having financial implications were alsosubjected to audit. Audit of Investment Operations was conducted on concurrent basis. Thiscovered the primary and secondary market transactions. In line with RBI directionsSubsidiary Government Ledger (SGL) for Central and State Government Securities weresubjected to concurrent audit and confirmation of correctness of balances and itsreconciliation at the end of each month were sent to RBI. The same were also placed beforethe Audit Committee at its meetings. The major contributions of the auditors during theyear include appraising the management of the scope of improvement in cash call servicingbroker-wise and cedant-wise receivable management reduction in unappropriated amounts andstreamlining of outstanding loss reserves. With the detailed increase in scope of audit ofInvestment Department Human Resources IT Communication General Accounts Office wereable to recommend better internal control reporting and monitoring environment. The Auditfunction of the Corporation has brought about improvement in data quality acceleration inclaim processing and streamlining of process of accounts receivable management in theReinsurance Operations. By critically appraising the Management of the efficacy of thevarious systems and processes the IAD facilitated to strengthen the overall governancemechanism. The Annual Budget of the Corporation/Mid-Year budget review exercise based onBudget Estimates of individual Departments placed before the Board were approved andimplemented by Internal Audit Department.

RTI ACT 2005

The Corporation has in place the stipulated structure to implement the RTI Act 2005 inthe Organization. The Setup is headed by a . A Officer General Manager designated as theTransparency & Nodal General Manager functions as the Appellate Authority anAssistant General Manager is the Central Public Information Manager discharges the dutiesof Assistant Public Information Officer under the provisions of been nominated as NodalOfficer MIS. The Corporate website also hosts information as relevantto the Corporation under the Act. It has separate Right to Information link developed andcontinuously updated by the RTI Cell ( containinginformation and complying with the provisions under the RTI Act 2005 and otherMinisterial and CIC circulars.

The Corporation in the FY 2020-21 complied with the guidelines issued by Ministry ofPersonnel regarding Implementation of suomotu disclosure u/s 4 of the RTI Act 2005 andits Audit thereof. During the period under review the Corporation received One HundredSixty-Seven (167) Applications and Seven (7) First Appeals under the RTI Act 2005. Allthe Applications were duly replied and appeals were disposed of well within thestipulated time. Three (3) Second Appeals has been filed against the Corporation beforeCentral Information Commission and the final orders were passed in favour of theCorporation during the period under review.


The Information Technology Management Group of the Corporation has adopted the visionof being responsible for generating value through the use of technology. It plays the roleof an enabler for business strategies and change management by the use of latesttechnology in hardware software and networking to match global benchmarks.

The year under review has seen the Business Continuity Plan (BCP) for IT operationsbeing tested under completely unforeseen conditions. The pandemic restricted mobility andaccess to office premises for an extended period of time. Timely investments over theyears had ensured putting in place latest technologies in all aspects of the ITinfrastructure. This enabled the organization could smoothly roll out work from homecapability for our employees. Their safety and well being was ensured while there was nostoppage of work. Employees too rose to the challenge by adopting all the availablecapabilities like remote access collaboration tools and holding virtual meetingsinternally and with customers. Skill development training and building awareness of theIT team is a continuous process and ITMG has taken the initiative to provide professionallevel certification on SAP modules for some of its employees. This will help developin-house expertise on the ERP system.

The department has also initiated new projects in the areas of Limit Management forbetter control in the areas of Investment operations building monitoring dashboards forClaims servicing evaluating solvency and capital management tools.


Training is defined as a planned and systematic process to modify or develop attitudeknowledge or skills through learning experiences to achieve effective performance atworkplace. There is need to train and retrain the employees on continuous basis. It is asystematic and planned process which has its organisational purpose to impart and providelearning experiences that will bring about improvement in an employee and thus enablinghim to make his contribution in greater measure in meeting the goals and objectives of anorganisation.

We take great efforts to infuse our employees with the confidence and charisma thatdirects them to be good leaders. And while not everyone is required to have the ability tolead an entire team we help them feel empowered enough to lead themselves. We ensure thatemployees develop a certain degree of autonomy and control in their day-to-day activities.A key principle of employee empowerment is providing employees the means for makingimportant decisions and helping ensure those decisions are correct. In the year 2020-21training was imparted to all levels of employees. Training programmes were conducted forthe employees through various institutes. Though the year was badly affected by thepandemic we rose to the occasion and conducted the programmes in online mode. Bothtechnical and behavioral programmes were conducted throughout the year.

A summary of various training programmes organized by the Training Department is givenbelow:

Organisation No. of programmes No of employees
National Insurance Academy 21 85
Insurance Institute of India 7 33
Indian School of Business 1 24
Other Reputed Institutes 32 123
In House 7 95

1. A high-end skill-based programme for specialist (underwriters) was conducted throughIndian School of Business. The certification-based program on Art of Negotiation andInfluencing Skills was conducted in mid-January 2021. 26 specialists (underwriters) weretrained. It was more of a role play based virtual programme.

2. A webinar on "Parenting a Successful Child" through IIM Ahmedabad inDecember 2020. The programme received tremendous response from our employees (youngparents). The programme was very appreciated by the nominated participants.

3. Organising a customised training programme on computation of the CSR budget whichbenefitted the niche group of employees in CSR department.

4. A workshop on Reinsurance Regulations for officers from all Class of Business wasconducted in January 2021. This was conducted through National Insurance Academy.Approximately it helped around 35 officers get better understanding of the revisedreinsurance regulations pertaining to the CBRs.

5. A specialised workshop on Mental Health and related lifestyle diseases was conductedin December 2020. The program received tremendous response and around 32 officers attendedthe same. The focus was entirely on equipping the officers to have a positive andproactive attitude in this current pandemic and lockdown situation.

6. Special workshop on leadership conducted on Women’s day on 8th March2021. The programme was facilitated by Ms. Subira Merchant on Women’s day i.e. 8thMarch 2021. Approximately 18 female employees could avail benefits of the said workshop.

7. A customised program was organised for women employees in GIC on eve of Women’sday. An in-house program concepted and designed for the female employees of theCorporation through Prajna Self-care workshop on 9th March 2021. Approx. 20female employees attended the workshop.

8. The Training Department also conducted the Pre-training programme for all eligibleemployees in 3 batches this year to familiarize them about the important examinationtopics like Reinsurance RI Claims Accounts etc. The faculties for this programme werein-house.

9. A one-day program on "Basics of Reinsurance" was conducted for Scale I andII officers. Approximately 50 employees gained the benefit from this programme. Theprogramme was conducted in coordination with NIA.

10. "Workshop on Delegation" was organised to bring in an attitudinal changein Scale III & IV officers. The workshop was conducted through M/s Strategic HR &Training.

11. Certification based SAP training modules on HCM BASIS and ABAP for about 7officers was conducted. Officers from HR and ITMG were enrolled for these programs.

Training Department has tried to ensure most of the employees could avail of some ofthe training during the year 2020-21.


Overseas expansion of operations through branch offices subsidiaries and jointventures is an integral part of the business growth strategy so as to expand the reach ofthe operations into multiple countries throughout the world. The Corporation targetsexpansion into new markets by efficiently using the potential and creating additionalsustainable income opportunities both in developed countries where there is largerdemand and in developing countries where there is increasing demand. Expansion plans aredrawn based on study of market opportunities supported by understanding of the businessworking environment and regulations in prospective markets. The Corporation has also beenstriking strategic partnership with reinsurers abroad to take advantage of the expertiseand experience of both parties and leverage on economies of scale.

GIC Moscow Representative office was upgraded into a wholly owned subsidiary named asGIC Perestrakhovanie LLC. The subsidiary after obtaining license from the InsuranceRegulator of Russian Federation has now commenced its operations from August 2020.

In accordance with the Ordinance published in official gazette dated 1stApril 2020 by Brazilian insurance regulator Superintendence of Private Insurance (SUSEP)the status of GIC Re’s Representative in Brazil is upgraded from ‘EventualReinsurer’ to ‘Admitted Reinsurer’.


The Corporation holds 35% equity of AICIL and NABARD holds 30% while the balance isheld equally to the extent of 8.75% by the four public sector non-life insurancecompanies.


The Corporation has 3 overseas offices viz. Branch Offices London Dubai and Malaysia.Apart from this the Corporation has three wholly owned subsidiaries viz. GIC Re SouthAfrica Ltd. Johannesburg; GIC Re India Corporate Member Limited London and GICPerestrakhovanie LLC. Moscow. The Corporation also has invested in the share capitals ofKenindia Assurance Company Ltd. Kenya India International Insurance Pte Ltd. SingaporeAsian Reinsurance Corporation Bangkok East Africa Reinsurance Company Ltd. Kenya andGIC Bhutan Re Ltd. Bhutan.


During the current financial year 2020-21 the Gross Premium written by the Branch isGBP 125.57 million compared to GBP 136.33 million last year and incurred a loss of GBP10.43 million as against a profit of GBP 5.20 million last year.


During the current financial year 2020-21 the Gross Premium written by the Branch isAED 469.48 million compared to AED 521.94 million last year and incurred a loss of AED65.13 million as against a profit of AED 248.61 million last year.


During the current financial year 2020-21 the Gross Premium written by the Branch wasRM 792.06 million compared to RM 856.16 million and earned a profit of RM 59.42 million asagainst a loss of RM 53.58 million last year.


The Corporation holds 9.19% shares in Kenindia which has a paid-up share capital ofKshs 1000 million. The total shares held by the Corporation is 918752 shares of Kshs 100each as on 31st December 2020. The Company reported a net profit after tax ofKshs 221.63 million as against net loss of 387.58 million last year. The Board of theCompany recommended a dividend of Kshs 5 per share for the year ended 31stDecember 2020.


The Corporation holds 20% shares in India International Insurance Pte. Ltd. which hasa share capital of S$ 50 million. The total shareholding of the Corporation in the Companyis 10 mn shares each of S$ 1.

The Company has made a profitof S$ 12.04 million as against a profit of S$ 9.94 millionlast year.

The Directors have considered it appropriate to a first and final dividend of 7.5% onthe paid-up capital of S$50.00 million for the year 2020.


The Corporation is holding 6.16% of the share capital as Associate Member of Asian Rein addition to holding 0.97% of the share capital as its Regular Member on behalf of theGovernment of India. Asian Re has made a loss of USD 3288825 in 2020 as against a profitof USD 1856812 in 2019.


The Corporation has 14.7521% stake in the share capital of East Africa ReinsuranceCompany Ltd. an existing - profit making reinsurance company in Kenya. The totalshareholding of the Corporation is 221281 shares of 1000 Kshs as on 31stDecember 2020. The Company has made a profit of Kshs. 410 million as against a profit ofKshs. 589 million last year.

Board has recommended a total dividend of Kshs. 100 million equivalent to 24.37% of PATto registered shareholders as at 31st December 2020.


The reinsurance company of Bhutan is a Joint Venture between the Corporation and localBhutanese promoters. The venture began its operations in the name ‘GIC Bhutan ReLtd’ in December 2013.

The Corporation has a 26% stake in the Joint Venture and held 28600000 shares ofvalue Nu. 10 each as of 31st December 2020.

The rest of the shareholding is divided between two Local Bhutanese promoters with 17%stake each and 40% shares are held by the public.

The Company has made a profit of Nu. 144.85 million (PAT) in 2020 as against a profitof Nu. 46.96 million (PAT) in 2019.

The Company has not declared any dividend for the year ended 31st December2020 as per RMA regulations.


GIC Re South Africa Ltd. is the Corporation’s first 100% owned subsidiary (Whollyowned subsidiary) operational since October 2014. The company when acquired was in therun-off for both Life as well as Non-life business. GIC started writing new non-lifebusiness since January 2015. The Corporation held 571030862 on par value ordinary shareswith a value of ZAR 1142061724 constituting 100% of GIC Re South Africa Ltd’sequity as of 31st March 2021.

It is confirmed that there was no dividend paid or declared in the period ending 31stMarch 2021.


With the objective of becoming a reputed global reinsurer GIC

Re expanded into Lloyd’s of London by offering reinsurance capacity toLloyd’s syndicates through quota share capital gearing treaties since 2011. Since asa capacity provider GIC Re was required to have its own Corporate Membership atLloyd’s GIC Re acquired I-CAT CCM TEN Ltd. an existing corporate Member company inNovember 2013 and renamed it as GIC Re India Corporate Member Ltd. which is registeredas a private limited company in the UK. The Company commenced reinsurance operations in2014.

Loss for the year ended 31st December 2020 was ? 496000 as against ?132000. The business underwritten by the Company is fully reinsured with GIC Re.

The company has not declared payment of any dividend for the year.


"GIC Perestrakhovanie LLC" commenced its operations during August 2020. Itnow writes reinsurance business emanating from the Russia Federation and former SovietUnion countries namely Armenia Moldova Azerbaijan Kyrgyzstan KazakhstanTurkmenistan Uzbekistan Tajikistan Belarus and Georgia. As per the plan GIC Re’sexisting portfolio would be renewed by the subsidiary at the respective renewal dates anduse the locational advantage to grow the business further. During the year the subsidiarywas rated B++ with Stable outlook by A.M Best.

The subsidiary could close its financial year ended on 31st December 2020with a written premium of 104.59 million Rubles. The net incurred claim to earned premiumratio was 73.45%. As the subsidiary could transact its business only for a brief periodduring 2020 the financial statements for the year ended 31st December 2020 arenot reflective of subsidiary’s projected business figures.


The shares of the Corporation are listed on National Stock Exchange of India Limited(NSE) and BSE Limited (BSE).


The Corporation has not accepted any deposits under Section 73 of the Companies Act2013.


The Board of Directors of the Corporation as on 31st March 2021 consisted offive (5) Directors comprising of two (2) Independent Directors one (1) GovernmentNominee Director and two (2) Whole Time Directors including the Chairman and ManagingDirector.

None of the Directors are related to any other Director or employee of the Corporation.

The details pertaining to composition and change in Board committees and details ofmeetings is provided under Corporate Governance Report.


All the Independent directors have given a declaration that they meet the criteria ofindependence as laid down under Section 149(6) of the Companies Act 2013 and the ListingRegulations. The Independent directors have confirmed that they have registered with thedatabase maintained by the Indian Institute of Corporate Affairs (IICA). The Corporationbeing a Government Company is under the administrative control of Ministry of Finance(MoF) the power to appoint Directors (including Independent Directors) vests with theGovernment of India. The appointment of Directors is done by MoF after due processesinvolving screening review and compliances. In the opinion of the Board the IndependentDirectors possess integrity and the requisite expertise and experience. As regards theproficiency as on date the Independent Directors have yet to undergo the onlineproficiency self-assessment test conducted by IICA.


The Corporation being a Government Company is exempted to furnish information underSection 134(3)(e) of the Companies Act 2013 vide MCA Notification dated 5 thJune2015.


The Corporation being a Government Company the remuneration payable to Key ManagerialPersons and other employees are as per the Government of India norms.


The Corporation has in place a Code of Conduct to regulate monitor and report tradesin securities by Directors Employees & Connected Persons which is in conformity withthe Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations2015. The Code is applicable to the Employees of the Corporation Designated Persons andtheir Immediate Relatives and Connected Persons to the extent applicable. The objectiveof the Code is to prohibit insider trading in any manner by the Designated Persons and tomaintain confidentiality of unpublished price sensitive information and access toinformation on a ‘need to know’ basis.


The Corporation being a Government Company is subjected to the CVC Guidelines and theCorporation has a separate Vigilance Department administering the Vigilance matters.

The Corporation has a Whistle Blower Policy/Vigil Mechanism Policy approved by theBoard and the same is placed on the website of the Corporation.


The Corporation continues to adopt the best practices of Corporate Governance to ensuretransparency integrity and accountability in its functioning. The Corporate GovernanceReport has been incorporated as a separate section forming part of this Annual Report.


Business Responsibility Report as stipulated under Regulation 34 of the ListingRegulations forms part of the Annual Report and has been hosted on the website of theCorporation and can be viewed at


In terms of the Listing Regulations the certificationby the Managing Director &CEO and Officerof the Corporation on Chief Financial the financial statements and internalcontrols relating to financial reporting has been obtained.


Details of Unclaimed Suspense Account as provided by our Registrar and Transfer Agenti.e. KFin Technologies Private Limited pursuant to Regulation 39 read with Part F ofSchedule V of the Listing Regulations is as under:

Sr. No. Description No. of Shareholders No. of Shares
1 Aggregate number of shareholders and the outstanding shares lying unclaimed as on 01.04.2020 01 32
2 Number of shareholders who approached Listed entity for transfer of shares from suspense account during the year 0 0
3 Number of shareholders to whom shares were transferred from suspense account during the year 0 0
4 Aggregate Number of shareholders and the outstanding shares lying unclaimed as on 31.03.2021 01 32


Pursuant to the provisions of Section 134 of the Companies Act2013 the Directorsconfirm that:

1. In the preparation of annual accounts the applicable accounting standards have beenfollowed along with proper explanations relating to material departures;

2. The Directors have selected such accounting policies and applied them consistentlyand made judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Corporation at the end of the financial year andthe profit and loss of the Corporation for that period;

3. The Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of Companies Act 2013 forsafeguarding the assets of the Corporation and for preventing and detecting fraud andother irregularities;

4. The Directors have prepared the annual accounts on a going concern basis;

5. The Directors have laid down internal financial control to be followed by theCorporation and that such Internal Financial Controls are adequate and are operatingeffectively; and

6. The Directors have devised proper systems to ensure compliance with applicable lawsand that such systems were adequate and operating effectively.


There has been no material change and commitment affecting the financial position ofthe Corporation which occurred between the end of the financial year of the Corporation towhich the financial statements relate and the date of this report.


The Corporation held six (6) Board meetings during financial year 2020-21 as detailedbelow:

24th June 2020

7th September 2020

19th October 2020

13th November 2020

5th January 2021

11th February 2021


During FY 2020-21 the Corporation was in compliance with the applicable SecretarialStandards issued by the Institute of Company Secretaries of India with respect to Boardand General Meetings.


As confirmed by the Ministry of Finance Insurance Division the Annual Report of theCorporation for the year 2019-20 along with Directors’ Report were placed before boththe Houses of Parliament under Section 394 of the Companies Act 2013 as per details givenbelow:

LOK SABHA 8th February 2021
RAJYA SABHA 12th February 2021


The Directors wish to place on record the co-operation received from Shri V. RamasamyShri G. B. Pande Shri A. P. Singh and Ms. Dakshita Das during their tenure as Directorson the Board of the Corporation and also for their valuable contribution to the cause ofthe General Insurance Industry.

The Corporation is grateful to the Insurance Regulatory and Development Authority ofIndia Government of India Reserve Bank of India and Securities and Exchange Board ofIndia for their continued cooperation support and guidance. The Corporation wishes tothank its investors rating agencies depositories Registrar & Share Transfer Agentand Stock Exchanges for their support.

The Corporation would like to express its gratitude for the continued support andguidance received from Principal Director of Commercial Audit and Ex-Officio Member AuditBoard- I Mumbai.

The Directors express their deep sense of appreciation to all the employees whoseoutstanding professionalism commitment and initiative have made the Organisation’sgrowth and success possible and continue to drive its progress. Finally the Directorswish to express their gratitude to the Members for their trust and support.

For and on behalf of the Board of Directors
Date: 29th June 2021 (Devesh Srivastava)
Place: Mumbai Chairman and Managing Director