Andrey T. UNTON: Despite the crisis phenomena reflected on the economy, which affected the insurance industry as well, Republican Unitary Enterprise "Belarusian National Reinsurance Organization" (hereinafter - BELARUS Re) was able to achieve its results in accordance to the business plan for 2015.
Last year there were a positive dynamics of development of the company. Thus, in 2015 the total volume of reinsurance premiums reached BYR 488.0 billion, up by 44.6% in the current prices compared to 2014. There has been a significant growth and financial performance. Thus, the net profit of BELARUS Re has grown by 43.2% over the year 2015 and insurance reserves were increased by one-third (Figure 1).
XPRIMM: What are the main types of business on which you were concentrated in 2015?
Andrey T. UNTON: Last year, the volume of accepted liability increased by 45% and went up to BYR 528.1 trillion, which indicates the active development of the company and it confirms the demand for company's services.
The Belarus Re's portfolio is dominated by reinsurance of aviation risks. Our clients are airline company "Belavia" and OJSC airline company "Transaviaexport". In our company much attention is paid to reinsurance of the classic types of insurance, such as property insurance, construction and commercial risks (Figure 2).
In recent years, BELARUS Re provided reinsurance protection for a number of large investment projects in the country with the attraction of foreign investment.
- The construction of a carbon black production in the free economic zone "Mogilev".
- The construction of a three-layer paperboard in Dobrush (the policyholder - Representation in the Republic of Belarus of the "Corporation Xuan Yuan LTD", China).
- The construction of enterprise destined for a mechanical sorting waste production in the Grodno city and reconstruction Gomel CHP-1 (the policyholder - stock company "Chinese Engineering Corporation LTD").
- The construction of generating object "Gomel II", area "Bragin II" destined for power generation on the basis of natural solar radiation power (the policyholder - "Solar Invest" LTD).
XPRIMM: Fitch Ratings has affirmed BELARUS Re an Insurer Financial Strength (IFS) rating of 'B-'. The Outlook is Stable. How the assignment of rating has allowed the company to increase the volume of underwritten risks from foreign markets?
Andrey T. UNTON: On November 2015, the international rating agency has affirmed BELARUS Re an Insurer Financial Strength (IFS) at the level of the sovereign rating of the Republic of Belarus, rating «B-», outlook - stable. The Outlook is Stable.
High requirements in connection of rating of re/insurance companies in the Western European and Asian countries do not allow, fully, BELARUS Re to rely on the increase of incoming business from these regions. At the same time, trying to create a reinsurance company of international level, to increase the exports of financial services, BELARUS Re realizes a policy of accessibility and transparency of financial reporting to its partners through the international ratings. In addition, the auditing KPMG Company carried out an annual audit in accordance with the international IFRS standards.
At the time being, BELARUS Re participates in the distribution of such programs as: Russian reinsurance of nuclear risks (property and liability), aviation risks and property risks of large Russian industrial companies. This result is a consequence BELARUS Re's positive reputation which was developed over the years of successful cooperation on the international and Russian reinsurance market, the absence of complaints from foreign partners.
XPRIMM: What are your development plans for the near future? Are there any specific markets that you think have great potential?
Andrey T. UNTON: At the time being, BELARUS Re concluded cooperation agreements and established a mutually beneficial relationship with almost all major insurance, reinsurance and brokerage companies from Russia, as well as a number with insurance and brokerage companies from other CIS countries. This suggests about a strategic cooperation with companies from the CIS countries.
At the same time, an active international activity was aimed to increase the awareness and to create a positive image on the foreign insurance markets, which has allowed expanding the geography of cooperation of BELARUS Re and company's presented on the insurance markets of Asia, Africa, the Middle East and Latin America.
In conclusions, the company has signed more than 130 cooperation agreements with foreign insurance, reinsurance and brokerage companies. Moreover, BELARUS Re is also a member of the Russian Association of Aviation and Space Insurers (RAAKS) and Russian Antiterrorist Insurance Pool (RATIP).