billion RUB actual volume of provided insurance capacity as of end 2016
billion USD the value of EXIAR’s obligations under insurance and reinsurance agreements that are secured by Vnesheconombank’s bank guarantee for the period until 31.12.2032
The Board of Directors has the overall charge of the Company’s business except for the matters reserved by the laws of the Russian Federation and EXIAR’s Articles of Association to other governing bodies.
As of 31.12.2016, the Board of Directors was composed of:
The Agency’s Board of Directors formed the Audit and Control Committee and Strategy Committee with the aim to tentatively consider the most critical matters reserved to EXIAR’s Board of Directors and to prepare the relevant recommendations.
The Management Board (collegial executive body of the Agency) and the Sole Executive Officer of the Agency direct day-to- day operations of the Agency. The Sole Executive Officer acts as the Chairman of the Management Board. Since 31.12.2014, Alexey A. Tyupanov is EXIAR’s CEO. The executive bodies are accountable to the General Shareholders’ Meeting and the Board of Directors.
The status of the Agency imposes high requirements on its solvency and financial stability in the long term so as to ensure timely and full performance by it of its obligations.
The Agency has been excepted from operation of regulations governing the insurers in Russia, so the requirements to its solvency, composition of insurance reserves and principles of provisioning and investment activities are laid down by the Board of Directors according to the Rules of Export Credit and Investment Insurance against Commercial and Political Risks.
In the global practices, ECAs’ obligations are secured by the state guarantees and have the degree of reliability at the level of the country’s sovereign rating. EXIAR’s obligations under insurance and reinsurance agreements are secured by Vnesheconombank’s bank guarantee for an amount of USD 10 billion for the period until 31.12.2032 [i] that is secured by the state guarantee of the Russian Federation for the appropriate amount [i] .
The Rules of Export Credit and Investment Insurance against Commercial and Political Risks set out the cap on the Agency’s insurance obligations under the executed insurance agreements in an amount of the state guarantees granted to secure the Agency’s obligations.
The actual volume of provided insurance capacity (amount of all assumed insurance liabilities) at the end of 2016 amounted to RUB 454.2 billion corresponding to 75% of the granted state guarantee (606.6 billion in Russian Rouble equivalent as of 31.12.2016).
The composition of Agency’s insurance reserves and calculation methodologies are based on the best practices of insurance companies subject to the specifics of insurance solutions offered by EXIAR. The insurance reserves are used to make investments under a conservative approach and taking into account the structure of the reserves by currency and term.
The Agency has a high level of financial stability. The amount of available financial resources comprising its equity capital and insurance premium reserve exceeds the amount of its economic capital (at the 10-year horizon with 95% level of reliability), which, as of 31.12.2016, stood at RUB 34.3 billion. The estimated likelihood that the Agency will perform its insurance liabilities on its own at the 10-year horizon is comparable with the level of financial stability attributed to organizations with Baa/BBB credit rating according to international rating agencies’ classifications.