"RNRC is the first Russian insurer being rated by Russian rating agency ACRA. ACRA assigns rating of AAA (RU) to RNRC which is clearly connected right now with the support from the shareholder (The Russian Central Bank), however it is the task to the entire team of the Company to demonstrate business efficiency, high standards of risk and asset management, corporate governance to update and to keep the rating at the same level. We also apply for the rating of FITCH Ratings which we expect to be granted soon", has declared Nikolay GALUSHIN, President of RNRC for www.xprimm.com.
ACRA also underlined in its press release that "operating efficiency of RNRC is assessed as high, with the combined ratio expected to fetch 0.6 by year-end 2017 and growth rates anticipated to significantly exceed the market average in 2017-2019. Also, very strong financial profile rests on high capital adequacy, high asset quality and strong liquidity".
Read the full press release here.
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 reinsurer started operating last October, after obtaining accreditation and concluding cooperation agreements with leading international insurance brokers. 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.