OREANDA-NEWS. July 20, 2010. ZAO “BDO” conducted an actuarial valuation regarding insurance commitments accepted by Corporation (insurance reserves set for December 31st, 2009) by request of OJSC “Transsiberian Reinsurance Corporation”. The main conclusion regarding the results of research consists in that actuaries, as well as in previous years, have confirmed the status “Transsib Re” as financially sound and reputable company.

In the actuaries’ conclusion it is noticed about reserve adequacy of unearned premium reserve (UPR) for covering of possible losses and costs under current reinsurance contracts. As to loss reserves containing in “Transsib Re” financial statements, their volume also complies with Corporation’s liabilities. So, as of the end of 2009, the sum of loss reserves specified in the official reporting has exceeded an index received regarding actuarial technique, by 18 %.

As a whole, the actuarial valuation has shown an adequacy of calculation presented by “Transsib Re” regarding insurance reserves to the standards applied within the limits of supervision of Russian insurers.

In the report the actuaries have especially underlined that there are no unprofitable business lines in Corporation. According to the actuaries, “Transsib Re” continues to be financially sound and reputable company with large safety factor. It proves to be true more than double excess actual margin of solvency over standard level. The index calculated with use of actuarial methods, also demonstrates more than double excess of actual volume over legislatively established minimum volume.

In spite of the fact that actuarial valuation of insurance reserves is not obligatory for Russian insurers by law, “Transsib Re” engages actuaries for activity analysis during four years. It can be explained as aim of creation a reinsurer of international level and partly as requirements of international rating agencies with which the Corporation has also been cooperating since 2006.