Moscow Reinsurance Co.
RATING B+/Stable/— (WEAK)
An insurer rated ‘B’ has weak financial security characteristics. Adverse business conditions will likely impair its ability to meet financial commitments.
DOMICILE
Russia
LICENSED
Russia
Company Contact
Moscow Reinsurance Co.
Obraztsova str., 31
build 2
127018
Moscow
Russia
Tel.: (7) 095-232-66-38
CEO: Gunter Geisler
Major Rating Factors
Strengths:
- Adequate capitalization
- Marginal quality of investments
- Marginal operating performance
Weaknesses:
- High industry risk
- Weak competitive position in large property risks
The ratings on RussiA-based reinsurer Moscow Reinsurance Co. reflect the high industry risk in the Russian (re)insurance market, and the company’s challenged competitive position in large property risks. These negative factors are mitigated by Moscow Re’s adequate capitalization, marginal quality of investments, and marginal operating performance.
Industry risk in the Russian and Commonwealth of Independent States (CIS) insurance and reinsurance sectors is high as a result of the relatively immature state of the countries’ insurance markets, regulation, and accounting standards.
Moscow Re has a weak position in large property risks, which is the largest segment of the Russian reinsurance market. Historically, Moscow Re’s limited risk capacity due to its reluctance to use any significant levels of retrocession and relatively moderate level of capital have been the main factors behind its weak position in that segment. Prospectively, Moscow Re’s competitive position in that segment should improve, as the new management will employ more retrocession to increase its capacity.
Moscow Re’s investment policy is constrained by the quality of assets available in Russia. Moscow Re’s investments are marginal, reflecting their acceptable diversification and marginal credit quality.
Moscow Re’s operating performance is marginal, reflecting a low return on capital and a modest quality of earnings due to the high-risk operating environment. This is offset by Moscow Re’s combined ratio of less than 100%.
Print
Send the link
