Russian central bank establishes national reinsurer

MOSCOW, Jul 29 (PRIME) -- Russia's central bank has established a national reinsurer and appointed First Deputy CEO of insurance company Sogaz Nikolai Galushin as its president, the central bank said in a statement on Friday.

First Deputy Chairman of the central bank Sergei Shvetsov was appointed as the chairman of the supervisory board of the reinsurance company.

The state registration of the entity is planned in August and license acquisition in October.

“The establishment of the national reinsurance company will significantly raise the capacity of the Russian reinsurance market and provide insurance coverage for companies which lost it due to sanctions and impossibility to reinsure risks abroad,” Shvetsov said. The company will insure a wide range of risks, including with state orders and housing insurance.

President Vladimir Putin signed the establishment of a national reinsurer on July 5, 2016 to boost protection of insurers and support their financial stability.

The capital of the company is planned at 71 billion rubles.

Under the law, insurance and reinsurance companies must transfer 10% of transferable liabilities under insurance contracts to the national reinsurer within 60 days after it receives the license but no earlier than January 1, 2017.

The rules will be extended to the insurance agreements signed before January 1, 2017 from January 1, 2018.

(66.1125 rubles – U.S. $1)

End