RUSSIA: net profit of RNRC almost doubled in 2019 and amounted to EUR 48 million

19 March 2020 — Marina MAGNAVAL
In 2019, the amount of accrued premiums of the Russian National Reinsurance Company (RNRC) amounted to RUB 14.1 billion (EUR 0.2 billion), which is 16% more y-o-y, while the volume of earned premiums increased by 20%, to RUB 13.3 billion, the reinsurer informed on its website.

The company noted that the largest increase in premiums was observed in insurance of construction and installation risks, cargo and space risks.

The company's insurance result amounted to RUB 2.5 billion (vs. a loss a year ago) thanks to an increase in premiums and a decrease of the loss ratio. The biggest shares in the portfolio fell on insurance of property of legal entities and construction risks (40%), aviation insurance (14%) and cargo (11%).

In 2019 the investment portfolio of RNRC grew by 10%. The investment result amounted to RUB 2.6 billion. The company's net profit almost doubled y-o-y and reached RUB 3.3 billion (~EUR 47.56 million). The return on equity (ROE) also exceeded the level of 2018 and reached 13.2%.

In 2019 the inward reinsurance market in Russia grew by 24.1%, and the outward market - by 7%, according to the main actuary of RNRC, Nikolay KUZNETSOV. GWP of the inward reinsurance in the country amounted to RUB 54.6 billion, 42% of which came from the international market. While GWP of the outward reinsurance reached almost RUB 127.0 billion, 74% of which were ceded to international markets, as KUZNETSOV explained.

* EUR 1 = RUB 69.3777 (as of 01.01.2020)

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