RNRC: The share of reinsurance premiums remaining in Russia will rise in 2017
Speaking about the reinsurance landscape in the Euro Asian Economical Union (EEU), the Russian National Reinsurance Company (RNRC) has described the EEU countries' reinsurance market as "still underdeveloped and small, although the capitalization of the players rose in the previous years" He said that "Solvency 2 and national ratings may be used in order to develop the unique reinsurance market of the EEU counties and its integration", yet "there is a lot of work to be done" in this respect.
By the end of 2016, the gross premium written from the date of obtaining the license in October 2016 and until the end of December amounted to RUB 148.5 million (USD 2.6 million).
In 2016 RNRC concluded 112 reinsurance contracts in total, including 104 facultative contracts and 8 treaties with 33 insurance companies and 12 insurance brokers.
"We estimate that the share of reinsurance premiums which will remain in Russia will rise in 2017, due to the increase of the capital of the Russian insurers and also the creation of the RNRC," commented Mikhail SEPP.
The basis of the company's portfolio - 41% - consists of contracts of corporate property reinsurance of legal entities, 28% - CAR/EAR, and 16% aviation risks. Reinsurance of liability and cargo amounts to 6 and 5% respectively. Only for 23% of the contracts is the share of RNRC lower than 10%.
RNRC, whose share capital is RUB 21.3 billion (more than USD 355 million), showed a profit of RUB 435 billion (USD 7.6 million).
The Russian National Reinsurance Company started operating last October, after obtaining accreditation and concluding cooperation agreements with leading international insurance brokers such as March, Willis, Aon Insurance brokers LLC, Guy Carpenter & Company, RFIB Group Limited, etc. The company's goal is to enter the international market to which RNRC is already able to offer a supporting capacity of up to USD 40 million. By 2018 the company plans to grow to the position of leading reinsurer in Russia and take to its own retention significant shares of major risks.
RNRC was established by the Central Bank of Russia pursuant to the Parliament law on the mandatory cession for all Russian insurance companies. 10% of every Russian risk transferred to reinsurance should be offered to RNRC. As for the shares in the risks of the companies that are under the international sanctions regime, RNRC must take them for reinsurance in the amount of 10%. RNRC is allowed to undertake all other risks according to its own underwriting policy. The company's priorities are space, aviation, nuclear, building and construction, property risks as well as reinsurance of liability and goods, in which the company's specialists have a world-level competence.
|Find a comprehensive presentation of the Russian insurance market's
results in 2016 and perspectives for the near future, as well as about
the NRNC's activity, in the latest edition of the XPRIMM Insurance
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