GIC Re’s Lloyd’s Syndicate breaks even in the first full year of ops,total prm at £64.57mn in 2019

Set up in April 2018, the ``GIC  1947’’ Syndicate had mobilised a total premium of £64.57 million in 2019.   The Syndicate had managed a combined ratio of 97.95 per cent during the year as against a combined ratio of 102.1 per cent reported by the Lloyd’s of  London. in 2019,  


London:

``GIC 1947’’, the first Syndicate at Lloyd’s of London set up by the Indian government owned reinsurer GIC Re, has a recorded net profit of £1.326 million during its first full year of operation in 2019.


It is the first syndicate in the history of Lloyds to clock a profit in a first full year of operation, said analysts in the London market.
 

Set up in April 2018, the ``GIC  1947’’ Syndicate had mobilised a total premium of £64.57 million in 2019.   The Syndicate had managed a combined ratio of 97.95 per cent during the year as against a combined ratio of 102.1 per cent reported by the Lloyd’s of  London. in 2019,  
 

According to analysts, a combined ratio below 100 percent indicates that the re/insurer is making an underwriting profit, while a ratio above 100 percent means that it is paying out more money in claims that it is receiving from premiums.
 

``In 2019, 50  percent of our business was from Indian market basically ceded by our promoter GIC Re and rest were underwritten from the other international markets. Indian business was mostly composed of Property and Agriculture portfolios.As part of getting the licence, we had agreed with Lloyds that 50 per cent of the Syndicate business would be Indian business ceded through  GIC Re. That is valid till 2020,’’,’’ said N. Ramaswamy, CEO, GIC Re, London.
 

The Syndicate is planning modest growth with new longer tail lines being added in 2020, he said.
 

``Going ahead,we will focus more on non-Indian business. We will be having detailed discussion with Lloyds on our 2021 business plans and my idea is to bring Indian business down to 30 per cent of the Syndicate book and write more international business,’’he explained.
 

Apart from `Syndicate 1947’, GIC Re has invested some capital (small shares) in some other Syndicates also, to get some diversification Total capital that GIC Re has deployed in Lloyds is £ 160 million, added Ramaswamy.   
 

``Additional capital for our Lloyd’s Syndicate in 2021 will depend on what amount of premium growth is allowed by Lloyds in the business plans. This will get finalised only around October and we will have to put in the additional capital by Nov end,’’ he said.

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``With GIC Re’s recent actions resulted in the correction of pricing in the Indian market and the positive trends being shown in US pricing, we hope to continue the growth of the syndicate while maintaining the same underwriting approach to deliver consistent underwriting profits to the group,’’ said Neil Attwood active underwriter at `GIC 1947’’.


GIC Re continues to harness the Lloyds of London’s best practices, said GIC Re officials..
 

With the Syndicate feed-back on the Western markets trends and GIC Re’s feed-back on the trends and developments of the  Eastern markets, there is a constant knowledge sharing taking place between Syndicate 1947 and GIC Re’s  India operations.  

 

``We expect this knowledge swap to continue and develop as time goes on with pricing methodology and other technical skills being shared within the GIC Re Group,’’ said GIC Re official.

 

GIC Re continues to be a market leader in India & SAARC region.

 

Meanwhile, Lloyd's of London, with 93 Syndicates, on Thursday announced  a return to profit of £2.5 billion (US$3 billion) for 2019.Lloyd’s profit was its first in three years, a £3.5 billion (US$4.1 billion) improvement over the 2018 loss of £1.0 billion (US$1.2 billion)
 


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