Yogesh Lohiya, chairman and managing director, GIC Re, addressing his first press conference, said that the corporation is at an advanced stage for such a venture. We are signing a deal for a new alliance in Africa shortly. We will be an effective reinsurer in Afro-Asian region and all over the globe, said Lohiya.
The GIC Re chief further said that the corporation is now willing to accept reinsurance business from the US and other developed markets. We will make a small entry into this region. We will be keen on property business and will stay away from liability and catastrophic risks in this region, he said.
The corporation has also received permission to upgrade its representative office in London to full branch office. The corporation, which is managing the motor pool, has received Rs 743 crore of premium from the domestic general insures. We have not paid any claim so far, said Lohiya. There is an overall softening trend in the global reinsurance pricing which will benefit India Inc, he said. The corporation, during 2006-07, has recorded a gross premium of Rs 7,404 crore. The corporations net premium income for the year is Rs 6,421 crore. In line with its philosophy of utilising Indian capacity optimally and maximising retentions, GIC Res net retention ratio stood at 86.72%.
The companys net incurred claims in 2006-07 were to the tune of Rs 3623 crore and the incurred loss ratio has been 69% as compared to 102% in the previous year. The international inward business portfolio has registered a growth of 20.13 % from Rs 1,200 crore in 2005-06 to Rs 1,442 crore during 2006-07. The domestic business during the reporting period has charted a growth of 64.07% from Rs 3,035 crore to Rs 4,979 crore. We would like the inward and domestic business to be 50:50 in five years, said Lohiya.
The total investments of the company during the year stood at Rs 13,654 crore while in the previous year the amount was Rs 22,134 crore. The income from investments during the year has posted an increase of 7.6% over Rs 1,848 crore recorded in the previous year The corporations assets rose to Rs 28,524 crore during 2006-07.