GIC sued for $ 115 million by AM Re for cancellation of agreement
IANS 24 February 2022
The Indian government owned General Insurance Corporation of India (GIC), a reinsurance company is facing a multimillion dollar lawsuit in the US filed by AM Re Syndicate Inc.
The US based AM Re, a reinsurance provider, has filed a suit for $115 million against GIC for cancelling its agreement and non-payment of commissions for business it brought for the Indian reinsurer.
According to AM Re, it had spent significant effort in negotiating reinsurance agreements on behalf of GIC Re for the year 2022, but the latter terminated the agreement and has not paid the commission as per the agreement.
According to reports, the AM Re had said that it had fetched a substantial premium for GIC in 2021. The US company said the gross premium for 2021 under the agreement for GIC was about $600 million.
When contacted for comments GIC told IANS that it is aware about the report of AM Re's lawsuit in connection with the termination of binding authority agreement.
"GIC disputes the allegations of the complaint and will address claims at the appropriate time in the litigation. Beyond that, GIC has no comment on the allegations or claims asserted in that proceeding as the matter is pending adjudication before the US Courts," the Indian reinsurer added.
GIC is the 13th largest global reinsurer in the world and it has entered its 50th year of operations.
Around 36 per cent of GIC's total Gross Premium Written (GPW) in FY21 was sourced from overseas business.
GIC has had the privilege to operate globally in multiple jurisdictions, including the US where it has conducted business for the last 10 years and its vision is to build upon this operation by cementing its relationships with key market players, cedants and other stakeholders, the reinsurer said.
AM Re has not responded to IANS' message.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Free Helpline
Legal Credit