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Allianz has denied media reports stating that the insurer could fully exit the Russian insurance market, Interfax reported citing the German insurer.

“A number of Russian media outlets published incorrect information on 12 May 2022 on the possible cessation of Allianz Group’s work in Russia, citing news agency Reuters. This information does not reflect reality,” the news agency quoted Allianz as saying.

Last week, media outlets reported citing Allianz CFO Giulio Terzariol that the insurance major could withdraw from Russia.

The exit would cost Allianz between €400m and €500m, the reports had mentioned.

Allianz said it is fulfilling its obligation to clients in Russia as per the terms of insurance contracts and Russian laws “and however the situation further develops, continuity of operations for employees and clients of the company will be ensured”.

The sanctions imposed in response to the Russian invasion of Ukraine are making it extremely difficult for foreign firms to operate in Russia.

Even Allianz’s operating entities have stopped both insuring new business and making new investments in Russia as they decisively reduce “exposure in an orderly manner”.

The German insurer operates in Russia via Allianz Insurance Company JSC and LLC IC Allianz Life.

According to the Central Bank of Russia, based on premiums, Allianz Insurance Company JSC stood at 43rd position in Russia in 2021.

Whereas LLC IC Allianz Life ranked 19th in the Russian insurance space.

Allianz has also set aside €100m in reserves for claims arising from the Ukraine crisis.