GIC Re set to acquire Saxum Re

Indian reinsurer GIC Re is all set to diversify its risk by expanding into South Africa to acquire Saxum Re.

The reinsurer is contemplating the move in the event of being affected by recent global accidents including claims resulting from the missing aircraft of Malaysian Airlines.

Johannesburg-based Saxum Re is a composite reinsurer underwriting both life and non-life business, and after acquisition will become the only 100% subsidiary of GIC Re. The Indian company will pay around USD2 million to buy Saxum, an official of GIC said on condition of anonymity.

A K Roy, chairman, GIC Re, confirmed the acquisition, saying the process is on. "As a matter of strategy, we should be evenly placed across the globe. So, we are expanding our footprint to South Africa," he said without divulging the details of the deal. This is GIC's first overseas acquisition