GIC updates on lawsuit filed by AM RE in US

GIC had executed Binder Authority Agreements with AM RE Syndicate Inc. USA for Motor and Marine business effective for a 24 month period from 1 January 2021 and 31 December 2022 respectively. Notice of Termination for these Agreements were sent on 28 October 2021 (Motor) and 12 November 2021 (Marine) with a notice period of 90 days, and as on date the termination is final.

GIC became aware of a lawsuit filed by AM RE in the United States District Court - Southern District Court of New York in February 2022, making various monetary claims purportedly arising from the termination of the Binder Authority Agreements by GIC. Subsequently, legal process was required to be followed so that GIC could be served in accordance with local Court regulations and procedure pursuant to which GIC is now able to make the present disclosure.

In the complaint, AM RE has sought amounts which are to be determined at trial but which as per AM RE would not be less than US$115 million. No further detail or basis has been provided at this time as to why AM RE alleges that the amounts would be at least US$115 million. GIC disputes the allegations of the complaint as well as the quantification of these claims and will address both aspects at the appropriate time in the litigation. GIC is currently in the process of studying the complaint and quantification in detail in order to determine the next steps. The complaint is still at a nascent stage, and GIC shall update on any material development that takes place in relation to the above.

Shares of General Insurance Corporation of India was last trading in BSE at Rs. 115.80 as compared to the previous close of Rs. 116.65. The total number of shares traded during the day was 46399 in over 1064 trades.

The stock hit an intraday high of Rs. 118.20 and intraday low of 115.30. The net turnover during the day was Rs. 5382436.00.

Source : Equity Bulls

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GeneralInsuranceCorporationofIndia INE481Y01014 GICRE Lawsuit US