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Report: Russian state reinsurer secures brokerage deal with Aon unit

JSC Russian National Reinsurance Co. signed a one-year brokerage agreement with the local unit of Aon PLC that will allow it to reinsure risks for up to 10 billion Russian rubles, Reuters reported Dec. 18.

The brokerage deal does not include coverage of risks related to Western sanctions, the newswire said, citing Nikolay Galushin, head of the reinsurer. Russia established the company in 2016, initially to provide reinsurance coverage for entities affected by sanctions imposed by Western states over the annexation of Crimea and Russia's involvement in the conflict in eastern Ukraine.

Meanwhile, Vedomosti reported Dec. 18 that Russian National Reinsurance suspended reinsurance coverage for rocket launches in Russia, a decision expected to remain in effect into 2019. The company has collected 280 million rubles in premiums in this segment but paid out claims costs of 2.5 billion rubles, the newspaper noted.

The move means that Russian insurers will have to reinsure related risks among each other or on the Western market, Vedomosti said.

As of Dec. 18, US$1 was equivalent to 67.03 Russian rubles.