Mumbai-based General Insurance Corporation Reinsurance (GIC Re) is actively working to expand its international business as part of a strategy to diversify its revenue sources, according to its chairman and managing director, Ramaswamy Narayanan.
In an interview with CNBC-TV18, Narayanan revealed that while GIC Re has historically not focused heavily on growing its international portfolio, the company is now looking to solidify its presence in overseas markets.
“We need to get our international credit rating to a level where we are able to attract and write the best businesses available in that market,” Narayanan stated, indicating a strategic pivot towards more lucrative and stable global insurance opportunities.
For the current financial year, Narayanan projected that domestic operations would constitute about 75% of GIC Re’s total book. However, substantial growth in the international sector is expected to commence starting from fiscal year 2026.
GIC Re’s financial performance in the September to December 2023 period highlighted some challenges, with a 13% year-on-year decrease in gross premiums, an 18% drop in net premiums written, and a 10% decline in net premiums earned.
Despite these setbacks, Narayanan is still bullish about a recovery, expecting a 10-12% increase in net earned premiums for the current financial year.
The reinsurer has also been engaging with international markets through government-led roadshows in major financial hubs such as New York, Hong Kong, Singapore, and Dubai. These efforts have reportedly received positive feedback from investors, potentially bolstering GIC Re’s position in these markets.
Regarding ownership, Narayanan noted that the Indian government is required to reduce its stake in GIC Re by just over 10% to comply with minimum public shareholding norms. The timing of this stake dilution is dependent on government decision-making processes, with expectations of resolution potentially after the elections.
GIC Re has a market capitalization of ₹59,456.62 crore and recently enjoyed market success, with its shares surging by 137% over the last year.
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