Russian State Reinsurer Gets Capital Boost as Ukrainian Attacks Raise Risks
Russian Central Bank Increases Capital Amid Rising Insurance Risks
MOSCOW, Sept 11 (Reuters) - The Russian central bank will inject an additional 165 billion roubles ($1.96 billion) into the capital of state-owned reinsurance company in September in light of the increased risks of attacks and sabotage, Governor Elvira Nabiullina said on Friday.
Ukrainian Drone Strikes Drive Up Insurance Demand
Ukraine launched hundreds of drones deep inside Russian territory in recent months to strike economic targets such as oil refineries and e-commerce warehouses. As a result, demand for insurance coverage spiked and premiums have risen.
Russian National Reinsurance Company’s Role After Sanctions
Withdrawal of International Reinsurers
After international reinsurers withdrew from the Russian market after the start of the conflict in 2022, the Russian national reinsurance company, owned by the central bank, became the key player. The company is under the U.S. and EU sanctions.
Company’s Current Obligations and Coverage
Reinsurance of Terrorism and Sabotage Risks
"Our decision will enable the company to meet all of its obligations. The company now effectively reinsures all risks related to terrorism and sabotage, while continuing to provide reinsurance services to key sectors on preferential terms," Nabiullina told a news conference.
Additional Information
($1 = 84.1609 roubles)
(Reporting by Vladimir Soldatkin and Elena Fabrichnaya; Writing by Gleb Bryanski; Editing by Louise Heavens)