Russian National Reinsurance Company has published its Analytical Report “Reinsurance in Russia: HY 2018”
The Report is based on the public statistics of the Bank of Russia and provides a fair view of the market development dynamics.
In Q2 2018, the upward trend of the inward reinsurance market, that started at the beginning of the year continued, and at the end of the 1st half of the year, the market growth was 32% and reached 24 billion RUB, while in Q1 2017 the decrease was 12%. The influence of RNRC has increased. Without RNRC, it would have been 17%. The growth of the inward reinsurance market responded to a considerable growth of the outward reinsurance market as part of the placements was retained on the Russian market.
The internal Russian market of inward reinsurance grew by 37%. Without RNRC, it would have grown by 16%. The amounts of premiums ceded by the international market to Russian companies ceased to drop and increased by 23% compared to 2017. At that point the international business share continued to decrease and made 33% of the total amount of premiums compared to 35% in the previous year.
In the 1st half of 2018, RNRC strengthened its leadership on the inward reinsurance market and increased its share from 22 to 26% with an amount of premiums of 6.26 billion RUB. The share of RNRC on the internal Russian market of inward reinsurance increased and reached 37%.
The share of RNRC in the total amount of premiums ceded in January – June 2018 was 8.6% of 69.2 billion RUB of ceded premiums. The amount of premiums ceded increased by 14% compared to the same period of the previous year. The internal Russian segment of the outward reinsurance market grew by 24%, while premiums ceded to the international market decreased by 20%.
The amount of paid claims in the 1st half of 2018 was 23 billion RUB or 34% less than in the previous year.
Read the full text of the Analytical Report “Reinsurance in Russia: HY 2018”
Russian National Reinsurance Company Joint-Stock Company was established pursuant to Federal Law No. 363-FZ dated July 3, 2016 “On Amending the Law of the Russian Federation ‘On Organization of Insurance Business in the Russian Federation’" by decision of the Board of Directors of its sole founding member, the Central Bank of Russia, who owns 100 percent of the company stock. The Company’s paid-up authorized capital is RUR 21.3 billion. Reinsurance License PS No. 4351 dated October 12, 2016. ACRA rating: ААА (RU), Stable outlook. Fitch rating: BBB- (positive). In 2017, RNRC posted RUR 7.6 billion in premiums.