India’s GIC Re planning to launch UK-based subsidiary

The Board of Directors of the General Insurance Corporation of India (GIC Re), the Indian public sector reinsurer, has approved the incorporation of a United Kingdom-domiciled, wholly owned subsidiary, GIC Re, India Service Company, to engage in “insurance-related services and activities.”

According to an exchange filed with the National Stock Exchange (NSE) of India, “The approval from the Insurance Regulatory and Development Authority of India (Irdai) for the formation of the wholly owned subsidiary shall be sought before making the investment, and directives as per Foreign Exchange Management (Overseas Investment) Directions, 2022, shall be complied with.”

The filing also reveals that the new company will be promoted by the corporation and incorporated as per applicable UK laws, has no minimum capital requirement and therefore can be established with capital of just £1. The corporation will initially subscribe to the minimum capital as may be necessary, at face value.

Currently, GIC Re’s subsidiary companies include GIC Re South Africa, GIC Re Corporate Member, London, and GIC Perestrakhovanie LLC, Moscow, and has the carrier also has branch offices in London and Kuala Lumpur.

A syndicate fully capitalised by GIC Re became operational at Lloyd’s of London, the world’s oldest insurance and reinsurance marketplace, in April 2018.

According to reports, the syndicate will scale up over the next few quarters to achieve the medium-term management objective of a 60:40 (domestic: international) risk portfolio composition.

Recently, GIC Re reported an underwriting loss of ₹2,959.34 crore for the nine months ended December 31, 2024, compared to a loss of ₹4,576.63 crore for the same period in 2023.

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