GIC Re set to join Lloyd’s market
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Indian reinsurer General Insurance Corporation of India (GIC Re), which has turned the corner with a net profit of Rs 2,345 crore for the year 2012-13, is set to become a member of Lloyd's market, the Mecca of insurance companies.
Unlike many other insurance brands, Lloyd's is not a company; it's a market where members join together as syndicates to insure risk.
Much of Lloyd's business works by subscription, where more than one syndicate takes a share of the same risk.
Business is conducted face-to-face between brokers and underwriters in the underwriting room. Lloyd's is the world's leading insurance syndicate, providing specialist insurance services to businesses in over 200 countries and territories. Currently, there are over 75 syndicates underwriting insurance at Lloyd's.
GIC Re chairman and managing director AK Roy said the public sector firm would need additional capital to be part of Lloyd's.
"When a company gets a presence in Lloyd's, its gets an 'A' rating, which is a major advantage. Lloyd's is already Solvency II compliant. It is an excellent platform to do international business and we are studying the different mechanisms through which we can enter it," Roy said.
GIC Re, the only Indian reinsurer, has posted a profit after tax of Rs 2,345 crore for FY'13 as against a loss of Rs 2,469 crore in FY'12.
The corporation wrote a gross global premium of Rs 15,086 crore, registering a growth of 10.8 per cent over the previous year. Total investments stood at Rs 26,132 crore as against Rs 22,165 crore previously. The income from investments during the year was Rs 2,887 crore. Its assets rose to Rs 59,940 crore during FY'13.
Roy said the corporation posted healthy profits as there were no major catastrophic events in the fiscal.