Zurich Insurance coverage has agreed to promote its Russian enterprise to members of the native crew, it mentioned on Friday, because the Swiss insurer turned the newest firm to announce its exit from the Russian market.
A slew of firms — from McDonalds and Dutch brewer AB Inbev to carmaker Renault and French lender Societe Basic — have stop the market in response to Russia’s invasion of Ukraine, with some handing these companies over to native companions.
Nevertheless, discovering appropriate options has been a problem, with some companies arguing they’re sustaining their Russian companies to be able to maintain belongings exterior the arms of the regime.
Zurich Insurance coverage mentioned the sale, which stays topic to regulatory approval, would hand its rebranded Russian enterprise over to 11 members of the unit’s crew.
“Below its new house owners, the enterprise will function independently below a unique model, whereas Zurich will now not conduct enterprise operations in Russia,” it mentioned in a press release. “The transaction will permit the brand new firm to retain an expert crew with amassed insurance coverage experience and to proceed serving the Russian market.”
The Swiss insurance coverage firm, which conducts property and casualty insurance coverage in Russia primarily for worldwide prospects, mentioned it held about 0.3% of Russia’s non-life insurance coverage market.
It had gross written premiums of roughly $34 million within the nation in 2021, the overwhelming majority of which associated to worldwide prospects.
Solely $3 million of these had been from home Russian prospects, it mentioned.
(Reporting by Brenna Hughes Neghaiwi; modifying by Lisa Shumaker)
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