GIC-Bhutan Reinsurance has declared a dividend of 3% for its shareholders for the first time since its inception in 2013.
However, the company is still struggling to get local insurance companies to conduct major business with GIC-Bhutan as the kingdom's two local insurers share their risk with international reinsurance companies, reports Kuensel, Bhutan's national newspaper.
The CEO of GIC-Bhutan, Mr Vikrant Parate, said that both Bhutan Insurance (BIL) and Royal Insurance Corporation of Bhutan (RICB) do reinsure with GIC-Bhutan. However, the total premium from the two companies formed only 12.8% of GIC Bhutan Re's gross premium in 2017, which is a decline from 20.6% in 2016.
GIC-Bhutan Re collected more than INR465 million (US$7.2 million) last year. Of the total premium, more than 70% were from India. The remaining 17% of premiums was split across 30 different countries in Asia, the Middle East and Africa.
However, 85% of GIC-Bhutan Re's market outside India is currently blocked because regulations in those countries require that the reinsurance company is rated. Mr Parate said that GIC-Bhutan Re would work to obtain an international rating to be able to undertake business in more countries.
Despite the challenges, the company earned BTN31.27 million (US$480,500) in profits after tax.
GIC-Bhutan Reinsurance is a foreign direct investment (FDI) with GIC Re of India owning 26% of the shares. Two local promoters own 34%. The remaining 40% are owned by the public.