The international scale credit rating of JSC RNRC (hereinafter, RNRC or the Company) is based on the adequate assessment of the business profile, strong assessments of asset quality and liquidity, and the satisfactory assessment of capital adequacy. ACRA also assesses the extent of extraordinary support from the state as very high, however, in view of the strong standalone creditworthiness of the Company, this support does not influence the Company’s international scale credit rating.
The credit rating has been upgraded due to changes to the business profile assessment as a result of improvement of score for operating environment and the Company’s position in the market.
RNRC is a specialized reinsurance company established in accordance with Article 13.1 of Federal Law No. 4015-I “On insurance business in the Russian Federation” dated November 27, 1992. The Company was established to provide additional protection to proprietary interests amid international sanctions. In accordance with the law, the Company may act as a party to most outgoing reinsurance contracts concluded by Russian insurance companies (mandatory cession).
KEY ASSESSMENT FACTORS
Adequate business profile assessment. The business profile assessment has been improved due to a better assessment of the Company’s operating environment. ACRA also notes several factors that contribute to RNRC’s strong position in the Russian insurance market. As of H1 2025, RNRC’s market share exceeded 3%. The Company maintains its leading position in the Russian reinsurance market. Furthermore, RNRC’s strong operating performance and competitive advantages associated with its status as a national reinsurer also positively impact its market position assessment. The average combined ratio, calculated based on the Company’s financial statements from 2022 to 2024, was 0.87.
Strong asset quality assessment. As of June 30, 2025, the ratio of high-risk assets to equity was 28%, corresponding to a strong asset quality assessment. Asset concentration indicators are low. The highest concentrations are found in funds placed in banks with high creditworthiness and government securities. The amount of risk transferred to retrocession is insignificant.
Satisfactory capital adequacy assessment. As of June 30, 2025, the regulatory ratio calculated in accordance with the Bank of Russia’s regulations was 364%, which is in the strong range. The downgrade to satisfactory is due to stress testing results. If a major insurance risk materializes, the Bank of Russia will conduct additional capitalization for the Company, but this will result in the Company’s capital adequacy ratio falling into the weak range.
The strong liquidity is determined based on the current liquidity ratio (more than 400% as of June 30, 2025); the results of the Agency’s liquidity stress testing did not affect the factor assessment.
Very strong degree of extraordinary support from the state. In ACRA’s opinion, the Company will be provided, if necessary, with sufficient short-term and long-term funding, including capital injections, in view of the following:
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The Company acts as a national reinsurer whose significance for the Russian economy is strong;
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The state has significant influence on the Company’s strategy and operations;
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The Bank of Russia will carry out capital injections if the Company violates capital adequacy ratios.
The degree of dependence of the Company and the state on homogeneous risk factors is assessed as medium.
Taking into account the above factors, the Company’s international scale credit rating is set at A-.
KEY ASSUMPTIONS
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No changes in the key legislative provisions defining the Company’s status over the next three years;
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The state promptly providing extraordinary support to the Company if necessary;
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Maintaining the adopted policies on risk management, investment of funds and underwriting (i.e. maintaining the Company’s business model) over a three-year horizon.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS under the international scale
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A positive rating action may be prompted by:
- Better business profile assessment.
A negative rating action may be prompted by:
- Deterioration of business profile assessments or key risk factors coupled with the state playing a smaller role in the Company’s operations.
rating components under the international scale
Standalone creditworthiness assessment (SCA): а-.
Support: state support, however, in view of the Company’s high SCA, the consideration of this support does not affect RNRC’s credit rating under the international scale, which is set at A-.
issue ratings
There are no outstanding issues.
regulatory disclosure
The credit rating has been assigned to JSC RNRC based on the following methodologies: the Methodology for Assigning Credit Ratings to Insurance Companies under the International Scale to calculate the SCA and determine the credit rating and the credit rating outlook of JSC RNRC under the international scale, Methodology for Assigning Credit Ratings with External Support to determine factors of external influence, and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities to ensure consistent and uniform application of ACRA’s methodologies, models, and key rating assumptions.
The credit rating of JSC RNRC assigned under the international scale was published by ACRA for the first time on April 19, 2024.
The credit rating and its outlook are expected to be revised within one year.
The credit rating was assigned based on data provided by JSC RNRC, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the RAS accounting (financial) statements of JSC RNRC as of June 30, 2025.
The credit rating is solicited and JSC RNRC participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to JSC RNRC during the year preceding the rating action.
No conflicts of interest were discovered in the course of credit rating assignment.
