On forming NRC authorised capital

As part of work to set up and launch the activity of the joint-stock company National Reinsurance Company (NRC) the Bank of Russia paid the company’s authorised capital in the amount of 21.3 billion rubles. NRC’s stated capital accounts for 71 billion rubles. According to calculations, 30% of stated capital is enough to solve the tasks facing NRC at the launching stage.

The company has been set up to provide reinsurance protection to Russian insurers, who have encountered with inaccessibility of international reinsurance capacities. Such situation was caused by the exclusion of a number of entities from reinsurance coverage, inclusion of ‘sanction’ clauses in the texts of reinsurance agreements, in accordance with which a reinsurer may deny or ‘freeze’ payments under the agreements, with the sanctions pertaining to the insured and assignors included in the respective sanction lists, dual/military purpose entities, and entities situated in the Republic of Crimea.

NRC is currently preparing documents to obtain a reinsurance licence. The licence is scheduled to be obtained in late October. On obtaining the licence NRC will start to provide reinsurance services according to general rules in compliance with legislation. The duty of the reinsured (insurers) to transfer a part of risks to NRC, which is stipulated by law, shall arise from 1 January 2017.

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06.09.2016 00.00.00