GIC-Bhutan Reinsurance makes profit of Nu 193.1mn in 2020

GIC-Bhutan Reinsurance makes profit of Nu 193.1mn in 2020

The company was formally launched on September 5, 2013

While the previous year was bad for many businesses because of the COVID-19 pandemic, the GIC-Bhutan Reinsurance Company Limited (GIC-BRCL) made a profit of Nu 193.1mn in 2020.

The amount is the highest profit earned by the company over the years.

The Chief Executive Officer of GIC-BRCL, Kesang Wangdi said that the company has performed well last year despite the pandemic.

“It is the highest amount of profit that the company has made over the years,” he said, adding that the company’s profit in 2019 was Nu 67.09mn.

The CEO said that the company also paid double the tax to the government last year compared to 2019. In 2019, the company paid a tax of Nu 20.09mn, and Nu 48.27mn in 2020.

Meanwhile, the GIC-BRCL gives and takes insurance to insurance companies, thus sharing the risks of insurance companies. It is connected with 19 countries in the world with major shares in India.

Keang Wangdi said that they are also trying to share market in other countries.

GIC-BRCL not only insures the insurance companies, the company also earns foreign currency and lends money.

In 2019, the company received US$ 1.7mn and Rs 628.68mn, and US$ 1.3mn and Rs 653.26mn in 2020 as a premium against reinsurance.

The CEO said that the company invests back to market through term loan like fixed deposits, and inter financial borrowing for the non-banks.

“The company also finance project in consortium financing with lead banks,” he said.

The company has around 1,470 shareholders and divided was given to them in 2017.

And on the divided for this year, Kesang Wangdi said it will be decided during the annual general meeting, which will be conducted towards the end of this month.

The GIC-BRCL is a Joint Venture Foreign Direct Investment Company with a total paid up capital of Nu 1100mn, promoted by two local promoters, each holding 17% share in the company.

General Insurance Company of India, the wholly owned reinsurance company by the Government of India, partners GIC-BRCL by holding 26% of the share. The balance of 40% is offered to the public through Initial Public Offering.

The company was formally launched on September 5, 2013.

The GIC-BRCL enjoys the patronage of two insurance companies in the sense that the reinsurance regulation mandates that 20% of every businesses underwritten by these two insurance companies have to be ceded to GIC-BRCL.

Dechen Dolkar from Thimphu