OREANDA-NEWS. September 20, 2007. Under an order of OJSC "Transsiberian reinsurance corporation" auditing company "FBK" has led actuarial valuation of technical reserves created by the corporation in 2005 and 2006. The corporation has made it under its own initiative as it adheres to high business standards.
According to the report of auditing company "FBK", a provision for unearned premium calculated by "Transsiberian Re" and contained in the official financial reporting for 2006 complies with obligations assumed by the Corporation.

Existing slight deviation of provision for unearned premium from the value calculated in accordance with the international standards of actuarial practice is due to arising exchange rate differences under premiums denominated in a foreign currency. We shall remind, that last year 73 % of premiums were received by "Transsiberian Re" from abroad.

As a whole, actuarial valuation has shown adequacy of presented by "Transsiberian Re" calculation of provision for unearned premium for 2005 and 2006 to standards applied within the limits of supervision over Russian insurers.

Amount of provision for claims contained in report forms of "Transsiberian Re" considerably exceeds received actuarial valuations. So, at the end of 2006 the provision for claims by actuarial technique has exceeded a parameter at the end of 2005 almost two and a half time. According to actuaries’ opinion it creates additional safety factor in the company’s activity.
If according to the official reporting actual solvency margin exceeds specified level by RUR 86 million the parameter calculated with use of actuarial technique, gives an excess of RUR 222 million.

In view of actuarial valuation of provision for claims  "Transsiberian Re’s" portfolio loss ratio reached in 2006 28,3 %, and loss ratio of a portfolio in view of actuarial valuation of provision for claims outstanding - 32,1 %.