State owned GIC Re’s new international venture ‘GIC Syndicate 1947’,a new Syndicate in Lloyd’s,set to begin its operations from April, in accordance with the Lloyd’s agreed business plan, after receiving necessary permission from Lloyd's of London..
GIC Syndicate 1947’ is the first Lloyd’s syndicate to be backed solely by capital from an Indian reinsurance group. that got listed in the Indian bourses recently.In December 2017 Lloyd’s Franchise Board granted “in principle” approval to GIC to set up the Syndicate.
The partnership with Lloyd’s will bring together a unique combination of Indian and international talent leveraging the proven strengths of GIC Re in emerging markets with those of Lloyd’s in the developed markets.Lloyd’s is the pre-eminent (re) insurance market in the world with access to specialty risks that complement GIC Re’s existing lines of business.Neil Attwood is appointed as the Active Underwriter for the ‘GIC Syndicate 1947’.
Alice Vaidyan, CMD, GIC Re, had earlier said,“ the Syndicate formation marks an inflexion point in our corporate history through provision of global business access in collaboration with a globally respected brand and will help us broaden diversification and leverage deployment of capital resources. Due to the significant growth of the Indian (re)insurance market, our portfolio has become more India-centric over the past few years. The Lloyd’s platform will help us access quality international business and provide us with enhanced balance and diversity.”
The country’s listed reinsurance company with a gross direct premium income of $5.5 billion in the nine months ended Dec 2017, is looking at attaining domestic and international business in the ratio of 60:40 from the current level of 75:25 and wishes to be the 10th(currently 12th) largest reinsurer in the world.
Pembroke, a Liberty Mutual Company, which is a specialist provider of Lloyd’s managing agency services, will manage the ‘GICSyndicate 1947’.
Lloyd' of London
Through the syndicate, apart from expanding its global reach, GIC Re will also benchmark with the peers in Lloyd’s, the world’s leading market for specialist insurance.
GIC Re is a market leader in India and SAARC region having been established for more than 45 years.Pembroke’s expertise in specialty lines coupled with GIC Re’s underwriting and distribution capability in India and other global markets will further develop business opportunities for GIC Re, Pembroke and other participants in the Lloyd’s market.
It has developed overseas business through its offices in London, Dubai and Kuala Lumpur. Moscow.
GIC Re is ranked 12th amongst the top 40 global reinsurers, as published by Standard & Poor’s in September 2017. A.M. Best, a global rating agency has on 28 February 2018 affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of General Insurance Corporation of India (GIC Re) with stable outlook.
The ratings reflect GIC Re’s solid market position in India as also geographically diversified underwriting portfolio with access to a sizable amount of business outside of India.The reaffirmation of rating also takes into consideration its sizable capital and surplus, balance sheet strength, favourable business profile in India and appropriate enterprise risk management.