GIC of India came into existence in 1972 at the time of Nationalization of general insurance business in India. GIC was designated as the “Indian Reinsurer” in November 2000 by Act of parliament to function exclusively as Life and Non-life Reinsurer. General Insurance Business (Nationalization) Amendment Act, 2002, has now been passed by both the Houses of Parliament and assented to by the President of India, on 7th August 2002. The subsidiary companies viz. National Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd. And United India Insurance Co. Ltd. will soon be totally de-linked from the Corporation. Also, Crop insurance business, which is being managed by the Corporation at present, will have to be transferred to the new Agricultural Corporation.

GIC of India, as “Indian Reinsurer” provides reinsurance capacity on a treaty and facultative basis, (both domestic and international) for risks ranging from simple to most complex. The reinsurance regulation of the country aims at maximum retention of insurance premium within the country. As per existing statute, GIC is entitled for 20% obligatory cessions on risks underwritten by the non-life insurers in India. The legislation also provides for utilizing GIC’s capacity before any risk is offered to the international market. In addition to the obligatory cessions, GIC provides Treaty and Facultative reinsurance capacity to non-life insurers countrywide by taking lead underwriting positions on reinsurance programs of domestic non-life insurers.

In its exclusive role as a reinsurer, GIC now, in addition to its reinsurance business from Indian market is strategically focusing on business from international market to emerge as a “Professional Reinsurance Solutions Partner’’ for the Afro- Asian region by providing comprehensive range of quality reinsurance packages backed by quality service. GIC has forged strategic ties with insurance and reinsurance companies in targeted regions of South East Asia, Middle East and African continent and is an active member of insurance / reinsurance organizations such as AIRDC, FAIR etc. The business philosophy of GIC is to ensure safety and security through prudent reinsurance and investment portfolio management, to maintain reputation built on strong long – term relationship, to deliver quality products and services to create a business environment flexible enough to cater the needs of the customers.

In a short span of its focused international presence, GCI has started leading the reinsurance programes of several insurance companies in neighboring SAARC Countries, South East Asia, Middle East and African continent To offer its international clientele an easy accessibility and efficient service, GCI has enhanced its global presence by opening representative offices in London and Moscow. The representative offices will enhance the interface with different reinsurance markets and intermediaries and assist in development of quality foreign inward business in meaningful volumes. The Corporation intends to establish, in course of time, similar strategic presence in certain other key reinsurance markets as well. Further, in order to be globally competitive, it is implementing comprehensive strategies in the areas of process, technology, human resources and marketing. Consistent with its net worth, the Corporation is now offering treaty and facultative covers with per risk limit of US$ 10 million, respectively.

The year ending 31st March 2002 was the first of the Corporation’s operations as exclusive “Indian Reinsurer”. Despite an increasing presence in the international markets, the focus of the Corporation’s operations continued to be the domestic business, which constituted about 94% of the portfolio. Total assets of the Corporation increased to Rs. 10,378.84 crores as on 31st March 2002 from Rs. 7,773.67 crores. Total investments of the Corporation in India during the year 2001-02 amounted to Rs. 7, 135.83 crores as against Rs. 6,345.33 crores in previous year. Total investment income of the corporation including profit on sale of investments/ securities amounted to Rs. 961.80 crores as against Rs. 873.40 crores for the previous year.

Gross direct premium income (GCI) of the Corporation for the year amounted to Rs. 311.57 crores. The Corporation, as an implementing agency, recorded premium of Rs. 288.05 crores under the National Agricultural Insurance Scheme (NAIS) as against Rs 227.59 crores in the previous year.

Being the “Indian Reinsurer”, GCI plays the role of reinsurance facilitator for the Indian insurance companies. The Corporation continues to act as the Manager of the Marine Hull Pool on behalf of the insurance industry. The Corporation’s reinsurance programe is designed to fulfill the objectives of maximizing retention within the country, developing adequate capacity, securing the best possible protection for the reinsurance costs incurred and simplifying the administration of business.

“A M Best, the international credit rating agency, has affirmed” A (Excellent)” Financial Strength rating to the Corporation. The affirmation reflects the Corporation’s excellent financial position, conservative investment portfolio and leading position in the Indian insurance market. The corporation plans to capitalize its strengths and capabilities in the international market. It will also consolidate its operations in India and continue to provide the expertise and technical skills to the local players. GCI is confident of meeting the future challenges through affirmative action and strenuous efforts in meeting the corporate objective of becoming a leading international reinsurer in the years to come.