GIC Re to raise up to $1.7bn in IPO as it seeks international expansion
State-owned General Insurance Corp of India’s (GIC Re) is expected to raise 113.7 billion rupees ($1.7 billion) in an initial public offering to run from Oct. 11. and Oct. 13, 2017 as it plans to grow internationally.
GIC Re set a price range of 855-912 rupees a share for its IPO. At the upper end of the price range, the IPO would raise 113.7 billion rupees ($1.7 billion).
In the GIC Re IPO, the Indian government, which fully owns the reinsurer, will sell 107.5 million shares, while the company will raise funds by selling 17.2 million new shares. The total offer of 124.7 million shares constitutes 14.2 percent of the post-offer paid up share capital.
GIC Re wants to grow the reinsurance business outside India to reach around 50 percent of its total gross premiums from currently 30.53 percent.
In a pre-IPO filing the company had said that it intends to expand its presence in select overseas geographies and markets to continue to grow the reinsurance business written for risks outside of India. The goal is to achieve a balance of international and India business in terms of premiums.
As part of the expansion plan, GIC Re wants to establish a syndicate at Lloyd's of London which will write a variety of classes of business from different parts of the world.
Get the latest re/insurance news sent to your inbox every day - Sign up to our free email newsletters
Lloyd’s faces pre-tax loss in 2017 due to nat cat events: Moody’s
RenaissanceRe faces $625m nat cat hit in Q3
Third Point Re CEO praises strategy avoiding nat cat losses
Lloyd’s Council member Fleming resigns
Allianz teams up with Silicon Valley firm in cyber protection
WR Berkley NA nat cat loss expected below $110m
