OREANDA-NEWS. June 26, 2008. Under an order of OJSC "Transsiberian Reinsurance Corporation" auditing company "FBK" has led actuarial valuation of technical reserves created by the corporation in 2006 and 2007.

According to the report of auditing company "FBK", a provision for unearned premium calculated by "Transsiberian Re" and contained in the official financial reporting for 2007 complies with obligations assumed by the Corporation. Existing slight deviation of provision for unearned premium from the value calculated in accordance with the international standards of actuarial practice is due to arising exchange rate differences under premiums denominated in a foreign currency. We shall remind that last year 54 % of premiums were received by "Transsiberian Re" from abroad.

As a whole actuarial valuation has shown adequacy of presented by "Transsiberian Re" calculation of provision for unearned premium for 2006 and 2007 to standards applied within the limits of supervision over Russian insurers.

With regard to loss reserves contained in the reporting forms of "Transsiberian Re", their size complies with obligations assumed by the Corporation. Thus, at the end of 2007, provision losses of the official reporting surpassed earned on the actuarial methodology, two and a half times. According to the actuaries, it creates an additional margin in the company. 

 The situation is similar to those of Corporation solvency. If accordance to the official reporting actual solvency margin exceeds specified level by RUR 70.6 million the parameter calculated with use of actuarial technique, gives an excess of RUR 243.5 million, which is almost 3.5 times. We shall remind that in 2006, on the basis of “actuarial” regulatory solvency margin exceeded at 222 million rubles.

Thus, one can conclude that in the light of the actuarial reserves solvency margin is sufficient. Consequently, methods and approaches used by "Transsiberian Re" to the formation of reserves in the opinion of Actuaries provide more indirect solvency margins.

Given the actuarial valuation provision losses the loss-making portfolios "Transsiberian Re" was in 2007 - 34% (in 2006 - 28.3%), while loss-making portfolios in the light of estimated by Actuaries IBNR (incurred but not reported) - 33.3% (the year before - 32.1%). Evaluation of losses on calendar year has shown good conduct of "Transsiberian Re" tariff policy, which is reflected in the low level of loss as a whole.