OREANDA-NEWS. The Bank of Russia took a decision to set up a National Reinsurance Company (NRC). It also approved NRC Charter and partially formed NRC supervisory board.

‘NRC establishment will substantially increase the capacity of the Russian reinsurance market and provide insurance protection to those enterprises which lost it in the wake of sanctions and following external risk reinsurance impossibility. However, NRC activities will not be focused on this segment, and the company will take care about a wide spectrum of risks, including those related to government  orders, home insurance and others’, says Sergey Shvetsov, First Deputy Governor of the Bank of Russia.

The establishment of the national reinsurer will add to reinsurance market transparency, increase responsibility, enhance financial stability of its participants and also reduce malpractices.

The Bank of Russia conducts discussions with market representatives to explain upcoming changes in the Russian reinsurance market following NRC setup and also to pursue one and the same interpretation of regulations set forth.

NRC declared authorised capital worth 71 billion rubles with paid-in authorised capital amounting to 21.3 billion rubles. In accordance with the law, the Bank of Russia will acquire 100% of NRC shares at its setup.

Sergey Shvetsov, First Deputy Governor of the Bank of Russia, has been elected the chairman of NRC supervisory board, with Nickolay Galushin, First Deputy Chairman of JSC SOGAZ board of directors, appointed NRC president.

NRC state registration is scheduled to take place in August, with its reinsurance licensing to follow in October 2016.