OREANDA-NEWS. By its Order No. OD-154, dated 21 January 2016, the Bank of Russia revoked the reinsurance licence of the Russian Timber Industry Reinsurance Company, limited liability company (registration number in the unified state register of insurance agents is 3087).

The decision is taken due to the company's failure to timely eliminate violations of insurance legislation, which served as a ground for the suspension of the insurance licence (Bank of Russia Order No. OD-2703, dated 7 October 2015), i.e. due to the non-compliance with financial stability and solvency requirements in terms of creating insurance reserves, procedure and conditions of investing equity and insurance reserves. The decision becomes effective the day it is published in the Bank of Russia Bulletin.

Following licence revocation, the Russian Timber Industry Reinsurance Company, limited liability company, is obliged to:
- take a decision on the termination of its insurance activities in accordance with Russian legislation;
- meet its liabilities arising from insurance (reinsurance) contracts, including the payment of outstanding insurance benefits;
- transfer the liabilities assumed under insurance (reinsurance) contracts, and/or cancel these contracts.

The Russian Timber Industry Reinsurance Company, limited liability company, shall inform insured persons on the revocation of its licence, early termination of insurance (reinsurance) contracts and/or transfer of liabilities assumed under insurance contracts to another insurer within a month after the decision on the licence revocation becomes effective.