GIC OBTAINS APPROVAL FOR LONDON BRANCH

India’s General Insurance Corporation (GIC), the country’s state-owned reinsurer, has obtained approval from the UK and Indian authorities to turn its representative office in London into a branch, reports Hindu Business Line . GIC currently generates about 22% of its premium income from outside India, although some if this is generated by Non-Resident India (NRI) related business, mainly from the Middle East, Africa and Asia. It hopes to increase the proportion of income generated from abroad to 50% over the next five to 10 years. For the financial year 2006-07 premium income from abroad was just under $500m. The company also has branches in Dubai and in Moscow. It has a near-15% stake in Nairobi-based East African Re, bought for $1.78m last October. A reduction in the recent mandatory ceding requirement to GIC for domestic insurers in India — to 15% from the previous 20% — had been seen as a threat to GIC’s income, but the reinsurer said that its aggressive marketing in the international sector would make up for any decrease in premiums generated at home. The quota will be reduced further to 10% this coming April. Last April, GIC’s general manager R Chandrasekaran said that “we have experience in the international markets, and we will take full advantage of it”. It is reported to be looking to establish a representative office in China during financial year 2008-09.