June 18, 2024


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Zurich Insurance to exit Russian market, sell business to local team

ZURICH (Reuters) -Zurich Insurance plan has agreed to market its Russian company to associates of the area team, it reported on Friday, as the Swiss insurer became the most recent corporation to announce its exit from the Russian market place.

A slew of companies — from McDonalds and Dutch brewer AB Inbev to carmaker Renault and French financial institution Societe Typical — have stop the market place in response to Russia’s invasion of Ukraine, with some handing these businesses more than to neighborhood associates.

Having said that, discovering suited solutions has been a challenge, with some organizations arguing they are preserving their Russian enterprises in get to hold property exterior the palms of the routine.

Zurich Insurance policies reported the sale, which continues to be subject matter to regulatory acceptance, would hand its rebranded Russian small business in excess of to 11 users of the unit’s crew.

“Under its new owners, the small business will operate independently less than a distinct brand, though Zurich will no for a longer period carry out small business functions in Russia,” it mentioned in a assertion. “The transaction will allow the new enterprise to keep a skilled group with accumulated insurance policy know-how and to go on serving the Russian market.”

The Swiss insurance policy company, which conducts house and casualty insurance coverage in Russia generally for international prospects, reported it held about .3% of Russia’s non-everyday living insurance plan sector.

It experienced gross published premiums of about $34 million in the region in 2021, the wide the greater part of which related to intercontinental customers.

Only $3 million of those have been from domestic Russian clients, it claimed.

(Reporting by Brenna Hughes Neghaiwi Editing by Lisa Shumaker)