Expert RA

Expert RA has assigned the A rating to Eastern Re-insurance Company

September 5, 2008

The Expert RA has assigned the A rating (high credibility) to Eastern Re-insurance Company.

High rates of business development including international operations contributed to the company’s rating. The company has sufficient own funds with low ratio of accounts payable to the company’s assets and high liquidity ratios.

“Unstable investment portfolio and growing un-profitability of insuring road transport undermined the re-insurer’s financial consistency, - says Natalya Komleva, Expert RA, department of rating of financial institutions, - still, the company’s un-profitability in this type of insurance is not above the re-insurance market average - 75%, according to Expert RA”.

Eastern Re-insurance Company intends to build up its capital, expand geography of business and improve business-processes. The company is a professional re-insurer, dealing with medium and large size insurance companies in Russia and abroad. The company re-insures risks related to road transport, property of enterprises and construction-erection works, covering most risks by its funds. According to FSIS, in the first half of 2008 the company was the 29-th in incoming re-insurance contributions among insurers and re-insurers.

According to Expert RA, the company’s re-insurance premium in 2007 amounted to 372.8 mln rubles, consolidated assets by 01.07.08 – 480.9 mln rubles, own funds – 208.6 mln rubles.