Public sector reinsurance company General Insurance Corporation of India (GIC) has set a target of Rs 15,000-crore premium income by 2015 as against Rs 9,350 crore in 2007-08.
The reinsurance company has said that its international business will be the driver for the growth and to strengthen the business, it is planning to enter Brazil and Argentina among others.
GIC Chairman and Managing Director Yogesh Lohiya told Business Standard on the sidelines of an event organised by Star Health and Allied Insurance Company that the share of international business, which was estimated at 27 per cent at the end of March 2008, is expected to rise to 50 per cent by 2015.
Lohiya said compared to the domestic market, international business offered 20-25 per cent higher profits. The Indian reinsurer intends to focus on aviation reinsurance, where it is the fifth-largest player, and other businesses such as property, energy and marine.
To achieve this target, Lohiya said, the company is looking at foraying into new countries. At present, GIC has liaison, representative or branch offices in London, Moscow and Dubai.
The insurer received a licence from the Brazilian government last week, which will allow it to foray into the reinsurance market in the Latin American country.
Over the next 10 days, the reinsurer intends to start offering property, casualty, marine and motor reinsurance services. The next step will be opening a branch office. The company is also planning to enter Argentina in 2009-10.
Asked whether the company would look at the US and Canada, Lohiya said, though GIC had written some business between August and September 2008, the company “is not interested in foraying into these two countries” due to legal and other reasons.
Lohiya said the company’s investment book value as of March 2008 was around Rs 14,000 crore. The paid-up capital stood at Rs 430 crore and solvency margin was 4.6 per cent as against the requirement of 1.5 per cent, he added.
