GIC Re looking for worldwide growth – MD

Mumbai-based Common Insurance coverage Company Reinsurance (GIC Re) is actively working to develop its worldwide enterprise as a part of a method to diversify its income sources, in response to 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 trying to solidify its presence in abroad markets.

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

For the present monetary yr, Narayanan projected that home operations would represent about 75% of GIC Re’s complete ebook. Nevertheless, substantial development within the worldwide sector is anticipated to begin 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% improve in web earned premiums for the present monetary yr.

The reinsurer has additionally been partaking with worldwide markets via government-led roadshows in main monetary hubs resembling New York, Hong Kong, Singapore, and Dubai. These efforts have reportedly obtained optimistic suggestions from traders, doubtlessly 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 doubtlessly after the elections.

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

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