Russian National Reinsurance Co maintains IPO plans, but not in next 2 yrs - Shvetsov
MOSCOW. Sept 20 (Interfax) - Russian National Reinsurance Company (RNRC) is maintaining plans to conduct an IPO, but not by 2021, as specified in the company's strategy, Central Bank First Deputy Sergei Shvetsov told journalists.
"Definitely not in 2021. Because the situation is undefined. Sanctions. The company's portfolio is currently being acquired, formed up. It is insufficiently balanced to embark on an IPO. For that reason it is necessary to operate on the market another couple of years, demonstrate the results of our activity, before it is ready for partial sale. So, the issue of the date of the IPO will not be examined in the coming two years. But there will be an IPO in the long-term outlook, as we previously promised," Shvetsov said.
RNRC's five-year strategy, published in 2017, stipulates that the company be ready to conduct an IPO by 2021 if its sole owner, the Central Bank of Russia, makes that decision.
RNRC began concluding reinsurance licenses on October 12, 2016, when it received a license from the Central Bank to conduct reinsurance operations. All Russian insurance companies are obligated to cede 10% of their reinsurance risks to RNRC beginning on January 1, 2017. Beginning in 2018, they must cede 10% of the risks on all in-force reinsurance contracts.