Zurich Insurance has agreed to sell its Russian business to members of the local team, with the Swiss insurer becoming the latest example of a Western company boycotting Russia.
The company joins a long list of companies that have abandoned the Russian market in response to its invasion of Ukraine, with some transferring business ownership to their local partners, ranging from McDonald’s, Dutch AB Inbev, French automaker Renault to French lender Societe Generale. Read more [Shell Serious Talks to Sell its Russia Business] and [Hasbro Company Suffers From Shutdown in Russia].
Finding a suitable exit plan has been a challenge for the company, with some businesses stating that they will keep their Russian businesses to keep their assets out of government control, while Zurich Insurance has stated that the sale, which now needs regulatory approvals, will hand over ownership of their Russian businesses — a small portion of its total business — to 11 members of its team there. Read more [+400 Companies Have Withdrawn From Russia and Some Are Stuck] and [World Bank Cuts Global Growth Forecast After Russia War].
The Swiss company, which operates the property and casualty insurance business for international clients primarily in Russia, reported that it controls 0.3% of the Russian non-life insurance market.
The company’s total written premiums in Russia reached $34 million in 2021, which represents less than 0.1% of the total written premiums in its property and casualty insurance business during the year, which amount to $40.1 billion. It is worth noting that the vast majority of these premiums are from For international clients, local Russian clients represent only $3 million in premiums.