GIC to spread wings abroad

State-owned insurance companies are expanding their reach into foreign markets with national reinsurer General Insurance Corporation (GIC) planning to spread wings to Dubai, Malaysia and China to increase its footprint in Africa and Asia.

The reinsurer has already opened offices in London and Moscow and is planning to open its third overseas office in Dubai by the first quarter of next fiscal, GIC chairman P C Ghosh said "GIC now has a business of over Rs 4,000 crore, of which Rs 3,100 crore is from the domestic market and rest from the foreign inward reinsurance. The company plans to increase its foreign business significantly by tapping Afro-Asian markets and attain the $ 1 billion mark," Ghosh said.

The company is targeting a 26 per cent growth in premium income at over Rs 4,500 crore and over Rs 360 crore in net profit this fiscal. The company's turnover is estimated at Rs 4,000 crore.

Life Insurance Corporation has already entered several markets including Nepal, Mauritius, the United States and the United Kingdom as part of its expansion plans and GIC is following suit.

GIC has shortlisted two companies for sponsoring the UAE venture and a final selection would be made by the end of the month. For china, the reinsurer intends to open a representative office first and then look for a joint venture.

The company has presence in Kenya, Tanzania and Singapore through joint ventures with public sector insurers and local companies.

General insurance corporation, which was converted into national reinsurer last year, has now taken a stance to cover risks in developing nations that were withdrawn by reinsurers of developed nations, Ghosh said.