GIC Re accounts for approximately 60% of the premiums ceded by Indian insurers to reinsurers. It is India’s largest reinsurance company in terms of gross premiums and also an international reinsurer that underwrites business from 161 countries. The company is ranked as the 12th largest global reinsurer and is the 3rd largest Asian reinsurer in terms of gross premiums accepted.
NewsBarons provides you the highlights of a media interaction, where Alice G Vaidyan. CMD, GIC Re says “Our dominant position continues to be unchallenged despite the entry of the foreign reinsurers in the Indian market.”
NB: Brief us about your Financials?
Alice G Vaidyan: We have registered rise in net profit to Rs 1,419.11 crore for the September quarter.
The company had posted a net profit of Rs. 251.79 crore in the July-September quarter of the previous fiscal.The net premium written during the quarter stood at Rs.5,865.89 crore.
The solvency ratio stood at 1.72 in H1FY18 as compared to 2.92 in same period last fiscal.
The gross domestic premium income recorded remarkable increase of 51.4 % to Rs. 24,404.37 crore in H1. We are eyeing Rs. 40,000 crore mark in FY18 in terms of gross domestic premium.
NB: How was the quarter as a whole?
Alice G Vaidyan: There is an improvement in our operating parameters. Our combined ratio has shown consistently improving trend during the last 3 years.
We have also achieved underwriting profitabaility.
NB: What is your market share?
Alice G Vaidyan: With over 60% market share, the company maintains the leadership in the Indian Reinsurance market.
NB: What is your mix in terms of domestic and international business?
Alice G Vaidyan: We are now about 75:25 domestic:international book composition and planning to expand our international book.
NB: What is your business strategy?
Alice G Vaidyan: We will continue to invest in catastrophe modelling and expand suite of models for key territories.
We continue to take a conservative view when it comes to Claims reserving.
NB: What is your growth target in terms of premiums?
Alice G Vaidyan: We expect 20% growth target for FY18 in terms of premiums.
Do you expect the major challenge in terms of entry of foreign insurers?
Alice G Vaidyan: Our dominant position continues to be unchallenged despite the entry of the foreign reinsurers in the Indian market. We hope to continue to play on our competitive advantage in the market.
NB: What are your plans on domestic front?
Alice G Vaidyan: On the domestic front, the introduction of PMFBY, agriculture insurance has been a key driver of premium growth. Agriculture insurance does present exposure accumulation potential and thus insurers in India have sought to reinsure more with market retention dropping to about 70%.
This has benefitted GIC Re in terms of expansion of reinsurance market as also benefit of diversifying our agriculture risk book pan-India.