A.M. BEST assigns rating "B+" to Russian reinsurer UNITY Re
UNITY Re, the leader of the reinsurance market in Russia, received the financial strength rating of "B+" (Good) and an issuer credit rating of "bbb-" from the international agency A.M. BEST, reads the press release issued by the company. The outlook assigned to both ratings is stable.
The rating reflects the leadership position of the reinsurer on the Russian profile market, between companies specialized on this segment, its good capitalization, as well as stable financial indicators. Despite its relatively small size by international standards, UNITY Re's gross written premiums grew by 9.4% in 2010 to RUB 1.025 billion (before cancellations), estimated to represent around 5% of the local reinsurance market. According to the conclusions of the rating agency, UNITY Re's portfolio of cedants includes most of the largest local insurance companies. Unlike most competitors, its portfolio of risks excludes captive business and financial schemes.
UNITY Re's risk-adjusted capitalisation, as measured by BEST's Capital Adequacy Ratio (BCAR), is strong and supportive of rapid premium growth.
UNITY Re's technical profitability in 2010 improved significantly, especially for its property (over 67% of the company's total business) and motor business (over 15%). With a combined ratio of 74% in 2010 and 80% average over the last five years, UNITY Re has been growing rapidly without deteriorating the quality of its portfolio - show the conclusions of the rating agency.
UNITY Re is part of the Russian group RESO, who manages the reinsurance programs of CIS member companies. UNITY Re is also assigned the international financial strength rating "BB" from STANDARD & POOR's, with a stable outlook, and has been running its activity since 2004.
