India’s national reinsurer General Insurance Corporation (GIC Re) is considering acquiring a Lloyds Syndicate member as a stepping stone to meet its ambition of being among the top five reinsurers globally.
Unlike banking where India does not have any presence among the global top 50, the country has done fairly well in insurance rankings. GIC Re has been ranked 15th among international reinsurers by S&P.
“Our intention is to be among the top five in the world,” said Ashok K Roy, chairman, GIC. According to Roy, organic growth would take many years and acquisitions were under the company’s consideration.
“We need to be in Lloyds as a member as this would provide us with the platform to operate in 60 countries across the world.
Lloyds has an A (excellent) rating from AM Best and the same rating is available to all syndicates,” said Roy.
Lloyds of London has a unique structure and is more like an insurance exchange rather than a company. Lloyds accredits companies that individually underwrite insurance business from all over the world. At present, GIC has a branch each in London, Dubai and Kula Lumpur.
Although Lloyds has traditionally had a reputation for being a market for specialized risks, it is now a major centre for all traditional property insurance. “We want to do all traditional lines of business,” said Roy.
The top five reinsurers in the world are Swiss Re, Munich Re, Hannover Re, Berkshire Hathway and Lloyds. Besides expanding in London, GIC is also looking to expand its aviation reinsurance business in the US.
The company is planning to send representatives to an aviation reinsurance event in Bermuda to tap the US market.
