Listing will help GIC reach Asean markets: Alice Vaidyan

National reinsurer General Insurance Corporation of India ( GIC Re), with total assets worth about Rs 80,000 crore, will be the first of the five state-run general insurance companies to hit the stock markets in about a year. Alice Vaidyan, chairman, GIC Re, says the listing will be good from the corporate governance point of view.

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The Cabinet has approved listing of general insurance companies.What are the benefits that you see from listing?

We were waiting for this for a long time. It is like GIC has arrived. GIC has become the world's largest agriculture reinsurer post the government's Fasal Bima Yojana. We are the fourth largest aviation reinsurer in the world, and 14th largest overall. It (listing) will be good from the corporate governance point of view. It will bring in a lot of visibility for GIC in the market.We will be able to raise capital from market. We can raise through both selling new shares and existing ones. It will help us reach other markets, including Asean.

What about growth?

India is in a high-growth phase.Listing will help us grow. We have grown over 90%, including crop reinsurance, in the first half of the fiscal. Excluding crop, we have grown at 40%. Reinsurance is all about diversifying portfolios. We have competition in the home market as well.

When will GIC list on exchanges?

Our optimistic target would be eight months and conservative would be 10-12 months. We would like to be the first general insurance company to list, considering we have the best book. From book value, net worth and assets point of view, GIC is ahead of the lot. My guess is 25% dilution will be split over the next three years.

This year IRDA has permitted five global reinsurance companies.Will competition hurt?

Opening of reinsurance is not seen as a threat by us because we have served this market for 45 years.We know the market well.

What would be your valuation?

There are multiple ways of calculating it. We will take help of the disinvestment department to arrive at the valuation. Listing will be good for GIC and for our growth expectations.

What are the three parameters investors should look at?

Net worth, combined ratio and investment book.