RUSSIA: in the first quarter inward reinsurance market increased by 24%

In Q1 2018, Russian inward reinsurance market saw positive dynamics (+24%). According to experts, the growth in the absence of RNRC could amount to 16%, shows the Analytical report on reinsurance market evolution in Russia in January-March 2018 recently published by RNRC - the Russian National Reinsurance Company.

The report was prepared based on the public statistics of the market regulator, Central Bank of Russia, and historical data, provided by the insurance companies to the Central Bank. According to it, RNRC's share in the inward reinsurance market decreased (18.6% vs 22% a year ago), but the company is still the market leader. Russian domestic inward reinsurance market increased by 29%. Without RNRC, it could show 17% growth rate.

Reduction of premiums of Russian companies in terms of risks from international market stopped. This segment jumped by 16% compared to the same period of 2017. At that, the share of the international business keep decreasing (37% of the total premium volume vs 39% a year ago).

Volume of outward reinsurance significantly increased (+42%). The biggest share of the domestic market growth is the share of RNRC, without RNRC the growth rate could amount to 26%. RNRC's share this year decreased to 5.4%, partially due to a big number of large-scale projects, liability under which is effective from the 1st quarter and in which RNRC's participation is less than 10%.

RNRC was established in 2016. The sole shareholder is the Central Bank of Russia. FITCH rating BBB- (stable forecast). RNRC is the leader of the Russian inward reinsurance market with a market share of 22% based on 2017 results.

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