“GIC Re decided to place its Dubai branch into runoff because of non-renewal of licence by Dubai authority, non-compliance in solvency requirement, etc,” the company said in its filing. The company said that it has already informed the Indian regulator of its decision on July 6. The corporation’s board also approved the decision on July 7 and decided to continue the activities relating to the Dubai branch from GIFT City. “We have major plans for growing operations in GIFT City,” said CMD Devesh Srivastava.
GIFT City is the only International Financial Services Centre in India, which is the financial services equivalent of special economic zones focusing on exports. Companies here function like offshore entities. Further, they conduct business that would otherwise be done offshore. The GIFT IFSC regulator had recently issued regulations permitting Indian and foreign reinsurers to set up offices there.
GIC had set up its international operations in Dubai in 2007 and had been providing reinsurance to the African continent. GIC also has permanent offices in the UK, Malaysia and Russia. It also has three subsidiaries — GIC Re South Africa, GIC Re Corporate Member, London, and GIC Perestrakhovanie, Moscow.
