Russian reinsurers have seen premiums shrink by 15 %, or a loss of RUB 9,747.14 million this year so far, about half of the losses were from Russian premiums and 39% from premiums ceded from abroad, Xprimm reported.
The tough market conditions caused several small-middle sized Russian reinsurers to close – a factor which has added to the shrinking volumes of business from outside the country.
The average rate of the currency basket from 1Q2016 to 1Q2017 changed by about 30%, affecting the performance on Russian premiums, and although this had little impact on the local market, it hit international players like SCOR, CHABB, and AIG, causing them to reduce business in Russia.
The market is seeing a trend of large companies increasing the capacity of their obligatory contracts – contributing further to a reduction of facultative outgoing reinsurance.
Xprimm said another trend reducing the volume of outgoing premium is a tendency to conclude contracts on the basis of co-insurance, causing an increase of obligatory capacities and a reduction in the placement of risks in facultative reinsurance.
