GIC makes Rs 2345 cr profit in FY13, eyes tie-up with Lloyd's
State-run General Insurance Corporation (GIC) has reported Rs 2,345 crore net profit in FY13 and has chalked out ambitious expansion plans, including a partnership with Lloyd's of London.
Mumbai: State-run General Insurance Corporation (GIC) has reported Rs 2,345 crore net profit in FY13 and has chalked out ambitious expansion plans, including a partnership with Lloyd's of London.
The general insurance firm, which has exposure in 160 countries worldwide, had reported a loss of Rs 2,469 crore in the previous fiscal due to catastrophes like the Japanese tsunami and floods in Thailand, a senior official said.
"We are planning a tie-up with Lloyd's. Details are being worked out and we want it to happen at the earliest, so that we can expand our reach," GIC Chairman and Managing Director A K Roy told reporters here after announcing its FY13 results.
Such a tie-up will help GIC operate in 60-odd countries where Lloyd's has licences and also better its rating, since a member of Lloyd's automatically gets rated as 'A', he said.
Lloyd's describes itself as a specialist insurance market where companies come together as syndicates to insure risks.
"Our aim is to be among the top five general insurance companies in the world in terms of premia collected, from our current position of fifteenth," he said, without giving any timeline.
When asked if the company is looking at any acquisitions, Roy said such a position cannot be achieved organically and confirmed that it is indeed on the lookout.
However, he did not give more details about likely acquisitions like the geography it is looking at or the size of the company.
The company is at various stages of discussing or conceptualising newer pools devoted to nuclear power (as it will see newer entrants coming in), energy pool and one for catastrophes, Roy said.
Besides availing a Lloyd's membership, the company is in different stages of entering new markets like Bhutan, Myanmar, Brazil, South Africa, Hong Kong and Australia, among others, GIC general manager N Mohan said.
The share of business from international markets dipped to 40 percent in FY13 from the earlier 44 percent due to a difficult operating environment, which witnessed excess supply of offerings.
The gross premium rose to Rs 15,086 crore from the year ago's Rs 13,618 crore.
The city-headquartered company also announced a dividend of 109 percent for the fiscal.
Its solvency margin also improved to 2.39 percent as against the 1.59 percent margin in the year ago.