GIC-Bhutan Re Ltd. was incorporated on 16th May 2013 under the Companies Act of the Kingdom of Bhutan – 2000 and is licensed to carry on General Insurance Reinsurance business and invest its fund like any Insurance Company in the Country. The Company was formally launched on the 5th of September 2013, by the Hon’ble Finance Minister of Bhutan and His Excellency, the Indian Ambassador to Bhutan.
GIC-Bhutan Re Ltd is a Joint Venture (FDI) Reinsurance Company with total paid up capital of Nu.500 million, promoted by two local Promoters viz; Dasho Sangay Wangchuk, chairman of Druk PNB Bank, Bhutan and Aum Damchae Dem, Chairperson of Pelden Group of Companies, each holding 17% share in the Company. General Insurance Company of India, the wholly owned Reinsurance company by the Government of India, partners GIC-Bhutan Re Ltd holding 26% share. The balance 40% will be offered to the Public through Initial Public Offering, which the Company intends to do within January 2014.
GIC-Bhutan Re Ltd enjoys the patronage of the two insurance Companies in the sense that the Reinsurance regulation mandates that 20% of every business underwritten by these two insurance companies have to be ceded to GIC-Bhutan Re Ltd. GIC-Bhutan Re Ltd will underwrite all forms of reinsurance business, though in a small way initially, given the fact the Company is new and no reserves have been created. However, over time, as the company grows and had created sufficient reserve, the company will start to underwrite in a big way.