The Russian Analytical Credit Rating Agency (ACRA) assigned the AAA (RU) credit rating with the stable outlook to the Russian National Reinsurance Company (RNRC), press service of the reinsurer said on Tuesday. The decision was made on April 28, the company said.
The credit rating assigned to the reinsurer "is based on its very strong business and financial profiles coupled with high-quality management," ACRA said in its press release. This is the first public rating assigned by ACRA on the insurance market, Director of the Financial Institutions Ratings Group Alexei Bredikhin told TASS on Tuesday. "Several other projects are in progress," he added.
RNRC is a wholly-owned reinsuring subsidiary of the Bank of Russia established in 2016 for protection of risks of clients hit by international sanctions.
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. Paid-up capital of the company is RUB 21.3 billion.