GIC Re’s London arm turns in profit

India has directed all its banks to remain operational during the threeweek lockdown as part of essential services and to ensure distribution of welfare cash schemes that are part of a $22.6 billion government stimulus reach the poor.

"It is very crucial and critical to keep banking channels open and make sure that branches and banking correspondents function throughout the lockdown period, so that people do not face any hassles or problems in their financial transactions," said a March 27 finance ministry order seen by Reuters.

On Sunday night, State Level Bankers' Committee (SLBC) of West Bengal issued an advisory to all the banks in the state to remain operational on all working days. In light of the orders, we have "decided to lift the earlier advisory on cluster approach in urban area & alternative day approach in rural areas for opening of bank branches," the SLBC notice said. —Reuters

GIC 1947, the first syndicate at Lloyd's of London set up by Indian reinsurer GIC Re, has a recorded net profit of £1.326 million during its first full year of operation in 2019.

It is the first syndicate in the history of Lloyds to clock a profit in the first full year of operation, said analysts in the London market.

Set up in April 2018, the `GIC 1947 Syndicate had mobilised a total premium of £64.57 million in 2019. The syndicate had managed a combined ratio of 97.95 per cent during the year against a combined ratio of 102.1 per cent reported by the Lloyd's of London in 2019.

A combined ratio below 100 per cent indicates that the re/insurer is making an underwriting profit, while a ratio above 100 means it is paying out more money in claims that it is receiving from premiums.

"In 2019, 50 per cent of our business was from the Indian market basically ceded by our promoter

GIC Re and the rest were underwritten from the other international markets. The Indian business was mostly composed of property and agriculture portfolios. As part of getting the licence, we had agreed with Lloyds that 50 per cent of the syndicate business would be Indian business ceded through GIC Re. That is valid till 2020," said N. Ramaswamy, CEO, GIC Re, London.

GIC Re continues to harness the Lloyds of London’s best practices, said GIC Re officials.