General Insurance eyes overseas acquisition

General Insurance eyes overseas acquisition

Kolkata: The public sector reinsurance monopoly, General Insurance Corp. of India (GIC), is expanding its international presence and is in negotiations for the acquisition of an African reinsurance company.

International operations account for 22% of the business of the public sector giant, which had premium-related earnings of 7,404 core in the past fiscal year.

“We want to make this 50% in the next five to seven years,’’ says Yogesh Lohiya, GIC’s chairman and managing director.

The proposed acquisition will involve an investment of only about Rs9 crore, but Lohiya said more such acquisitions will follow to help GIC expand its base in Africa.

He declined to elaborate on the deal and said there was no set-aside budget for future deals.

“It is very difficult to set such investment targets as the profile of a market can change with a single catastrophe in our line of business,’’ Lohiya said.

GIC enjoys the position of a preferred reinsurer in the African market, Lohiya noted.

GIC is also in the process of turning its representative office in London into a branch office.

It will look to grow organically in Europe and could consider spinning off its European operations into a separate company, Lohiya added.

As mandated by the finance ministry, GIC has appointed consultant Deloitte Touche Tohmatsu to help prepare a road map through 2025.