Aiming to be among top 10 reinsurers in world: GIC Re

Public sector reinsurer General Insurance Corporation of India (GIC Re) could be among the first general insurers to be listed on the stock exchanges with the Cabinet approving their Initial Public Offering (IPO). In an interview with M Saraswathy, Alice G Vaidyan, Chairman and Managing Director of GIC Re talks about their plans ahead of the IPO.

Q: How significant is the listing for GIC Re?

A: This is news that we were waiting for long. We are elated that it has come through now. Apart from this helping the company raise additional capital, it will give us more visibility in the market at a time when it is opened up for foreign reinsurers. It will help us from corporate governance point of view as well.

It will help us grow in stature as well. We are looking at being a part of the top ten reinsurers in the world. GIC Re has became the largest agricultural reinsurer in the world. We are fourth largest aviation reinsurer and 14th largest reinsurer in the world. We will move into the 12th position globally by end of this fiscal.

Q: By when do you plan to list?

A: An optimistic target will be 8-10 months and a conservative one will be 10-12 months. We would like to be the first one to list, considering we have the best book in the market.

Also, our combined ratio is under 100 percent. Our aim is to keep combined ratio under control and maintain profitability.

Q: How has your growth rate been?

A: We have grown over 90 percent and excluding crop insurance we are growing at 40 percent on a half yearly basis. We are expecting to grow by 60 percent growth by end of this fiscal.

Q: Will this help you to further expand internationally?

A: Our mix between domestic and international business is 55-45. We want to grow in international market as well, now since we have more competition in the home market from foreign reinsurers. We are aiming for a 50-50 mix.

Q: Are you planning to enter the specialist insurance market Lloyd’s of London?

A: Our plans to enter Lloyd’s are still on. We are thinking of building a Lloyd's syndicate but this is still a gradual process.