The highest growth came from reinsurance contracts, ceded to UK, while the other two large markets for placing risks in reinsurance (Germany and France) recorded a y-o-y decrease of reinsurance premiums from Russia. It is also worth noting that reinsurance premiums to China almost doubled (to RUB 3 billion) and premiums ceded to reinsurers of Luxemburg saw a significant 2.5-fold increase.
APIB experts noted that the share of risks ceded in international reinsurance increased for the first time since 2017. Among the main reasons: the impact of large facultative reinsurance of construction and assembly risks, depreciation of the ruble and a significant increase in reinsurance rates due to big losses of previous years, as well as an increase in cost of obligatory reinsurance programs.
By the end of 2020, APIB forecasts that the share of the domestic reinsurance market will be higher, however, the ruble depreciation and growth in the cost of reinsurance (both facultative and obligatory programs) will be long-term. Low level of own retentions of Russian insurers, except for RNRC, and, as a result, insufficient internal reinsurance capacity of the Russian market continue to have a negative impact.
EUR 1 = RUB 78.9929 (as of July 1st, 2020)