National reinsurer to launch its operations

The National Reinsurance Company (NRC) received the reinsurance licence today. Its activities will expand the potential of Russian insurers to reinsure risks in the Russian market.

NRC is expected to sign first reinsurance contracts by 2016 end. Within the next months, prior to the introduction from 1 January 2017 of the requirements for the mandatory transfer (cession) of a partial risk to NRC for reinsurance, the company will test its interaction technology with the market to streamline business processes.

According to the law, NRC shall assume insurance payment obligations under insurance contracts in relation to objects under international sanctions in the minimal amount that accounts for 10% of the reinsured risk.

As for other risks, insurers shall offer NRC for reinsurance 10% of the transferred risk, while the company shall have the right to decide whether to take such risks or reduce the share of accepted reinsurance.

Currently, the NRC paid-up authorised capital is 21.3 billion rubles and its stated capital is 71 billion rubles with the Bank of Russia being the sole shareholder of the company.