Russian rating agency Expert Ra has improved Moscow Re’s rating from А+ to the highest possible rating А++ (High level of reliability with positive outlook) which means that Moscow Re is the only Russian reinsurer with the highest rating A++

The official Expert Ra’s report reads: «the rating obtained means that, in the short-term perspective, the Company will almost certainly fulfill all of its current financial obligations as well as obligations arising out of its insurance activities. In the medium-term perspective, it is very likely that its obligations under insurance contracts will be fulfilled, even in circumstances of significant unfavourable decline in macroeconomic and market indicators».

According to Grigory Fidelman, Moscow Re’s president, the expert financial policy of the Company’s management and effective corporate management have enabled the Company to attract new shareholders, improve its financial indicators, raise its capitalization and obtain an international rating B by S&P as well as to obtain the highest (A++) rating from Expert Ra.

Moscow Re’s 2004 figures have placed it on course for a premium income of 766 m RUB, which is 38% higher than in 2003. According to Russian GAAP the authorized capital trebled during the corresponding period (from 95 m RUB to 296 m RUB) and the Company’s assets rose by 2.5 times (up to 1 256 m RUB). Moreover Company’s insurance funds have risen by 1.5 times (up to 458 m RUB) during 2004.

“Assignment of A++ rating is a very significant and anticipated event for us”, said the chairman of Moscow Re’s Board of Directors Mr. Sergey Nikolaev. “Moscow Re’s dynamic and successful development over recent years has displayed excellent indicators of all classes of business. Now we can say with confidence that Moscow Re is the leader on Russian reinsurance market. Notwithstanding our relatively good financial results, we are not going to stop at this point but are planning to extend geography of our operations, to strengthen our position on reinsurance markets of Russia and CIS and in that way to improve our financial stability in the near future”.