State-owned Indian reinsurer GIC Re has filed for an initial public offering (IPO) which could raise more than $1bn, according to reports.

Reuters has reported that the Indian government will be selling about 107.5 million shares in GIC Re's IPO, while the insurer will sell 17.2 million new shares,

This amounts to a total of 124.7 million shares, or 14.22 percent of the company's post-issue share capital.

The IPO is being managed by Axis Capital, Citi, Deutsche Bank, HSBC and Kotak Investment Banking.

In a draft prospectus for the IPO, GIC Re claimed that it was 12th largest global reinsurer based on gross reinsurance premiums written in 2016, further highlighting that it was the third-largest reinsurer in Asia, behind China Re and Korean Re.

The prospectus also sized the Indian reinsurance market at around INR 388bn or $6.1bn in 2017 and said it was growing at a compound annual rate of about 15 percent.

Reuters reported that the sale would assist the Indian government in reaching its fiscal deficit target of 3.2 percent of gross domestic product (GDP) for the year ending March, which includes selling stakes in companies.