The Russian National Reinsurance Company, (RNRC) which was created to reinsure Russian firms under Western sanctions, plans to diversify and expand into China, the Middle East, India, and Africa, the Chief Executive told Reuters.
The firm reported earning premiums of $52 million in the first half of 2017, with a quarter coming from Russian firms under sanctions.
All Russian firms under sanctions have been reinsured by the firm, including the military industry’s enterprises, and RNRC’s believes its total income will rise to 12 billion roubles in 2018, Chief Executive Nikolay Galushin told the Reuters Russia Investment Summit.
The reinsurer said it now aims to expand to firms internationally, in preparation to move the RNRC towards an initial public offering (IPO) that could attract Russian and Asian investors.
According to Reuters, Galushin didn’t give a time frame for the IPO launch, but said the firm first aimed to achieve a portfolio where business from insurers ceding 10% of their risks to RNRC accounting for under 50% of the firm’s overall portfolio.
RNRC currently reinsures large-scale infrastructure projects, such as Gazprom’s Amur gas processing plant in the Russian Far East and its export pipelines, such as Power of Siberia, Blue stream and Turkish Stream, as well as individuals under Western sanctions.
