22.08.2018

Financial Statements 2017

CHARLESTOWN, NEVIS, August 22, 2018
SELECTA Insurance and Reinsurance Company (Caribbean) Limited announced today that the Financial Statements 2016 audit has finally been completed.

Managing director comments.

Kirill Patyrykin, the Managing director of SELECTA noted that “2017 was a year of many challenges for the SELECTA group of companies. As we have represented earlier, SELECTA Insurance and Reinsurance Company Ltd, based in Moscow Russia, has suffered significant pressure from the local regulator. An additional pressure of the world recognized jurisdictions on Russia has proven to continue operating from within Russia unjustified, albeit the Russian regulator has admitted that SELECTA /Moscow is ultimately solvent and none of the fines are enforceable.”

“In order to continue normal market operations, SELECTA /Caribbean had to accept the future claims originally written by SELECTA /Moscow due to uncertainty in the amount and period of payment. On the other hand, it was not possible to transfer the assets from Moscow to the Caribbean entity at the same time due to the longevity of the insurance company winding up in Russia.”.

“In addition, we had to keep in mind the necessity to transfer the core staff from Moscow to the Caribbean entity. And lastly, we had to keep in mind the necessity to write off over US$ 900,000 of the doubtful debts as advised by the Auditor in 2016 Financial Statements. Even as we continued to record the signs of recovery getting underway, we were still dealing with and feeling the effects of the transfer of the business and winding up SELECTA /Moscow.”.

“We must thank our partners, who made it possible to estimate our credibility based not only on a single entity statement, but on a group, and who appreciated management’s efforts to ensure creditworthiness. Together with our many partners in every part of the world, SELECTA Insurance and Reinsurance Company (Caribbean) Ltd will continue to deliver for the clients on both the verbal promises and contract obligations signed by either SELECTA /Caribbean or SELECTA /Moscow.”.

“As of December 31, 2017, we had a very limited capital in the Caribbean entity. However, we believe that the Group as a whole is financially solvent to cover all current obligations with an excessive capital approximately US$ 3,000,000, which is legally in possession of Moscow entity. We are currently building up the capital transfer structure to transfer the excessive capital from Moscow to the Caribbean entity, supported with an A-rated financial institution in form of a payment guarantee with an effect from January 1, 2018.”.

You can see the statements here.

About
SELECTA Insurance and Reinsurance Company (Caribbean) Limited

SELECTA Insurance and Reinsurance Company (Caribbean) Limited was duly incorporated and licensed as an international Reinsurance company under the provisions of the Nevis International Insurance Ordinance 2004 (and amendments) in December 2013, offering a wide variety of reinsurance products to its customers.

Media contact:
Kirill Patyrykin
Managing director
SELECTA Insurance and Reinsurance Company (Caribbean) Limited
+1 786 3758103
secretary@selecta.re