Dubai:
After 14 years of business,,state owned GIC Re has decided to shut down its largest overseas operation in Dubai, which was operating as a branch in Dubai and focusing on the MENA(Middle East and North Africa) region.
The reinsurer, which has a number of international operations in countries like UK, Malaysia, South Africa, Russia and Bhutan will move its MENA business to GIFT City, which is India’s first international financial service centre(IFSC), in Gujarat
.“Following a review of the branch operations, it has been decided to underwrite business emanating from the MENA region (both new and renewal), effective 3 July 2021, from Gujarat International Finance Tec-City,” GIC Re said in a letter addressed to all business partners on 5th August, signed by Balaji Thiagarajan, CEO, GIC Re, Dubai.
GIC Re said that it would continue to service the underwriting and claims run-off from business underwritten earlier from its Dubai office.
During the quarter ended June 21, GIC Re decided to place its Dubai branch into run off because of non-renewal of license by Dubai authority, non-compliance of solvency requirement etc. Decision to place the Dubai Branch into run off, has been also informed lo the IRDAI, said the reinsurer..
GIC Re India will continue the activity / operations relating to Dubai branch from GIFT City, India, added GIC Re.
Last year, GIC Re had faced a large claim in its Dubai operations on account of the Beirut blas,t that had taken heavy toll on global reinsurers which were operating in the region.
GIC Re has been steadily expanding its international operations and had started business in the DIFC in 2007.
Total global gross premium of GIC Re had fallen by 7 per cent to Rs 47,014.38 crore in 2020-21.However,it had expanded its international market exposure, at Rs 17,000 crore, up 15 per cent, to 36 per cent in 2021 from 29 per cent in Fy 2020