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Zurich Insurance has announced plans to exit the Russian market as the war between Russia and Ukraine drags on.
The insurance major will sell its operations in Russia to 11 members of the local team.
Zurich Insurance’s announcement comes after the insurer paused new operations and renewal of existing contracts in Russia.
The new owners of Zurich Russia will operate independently under a different brand and Zurich will cease its operations in Russia.
“The transaction will allow the new company to retain a professional team with accumulated insurance expertise and to continue serving the Russian market,” the insurer said.
Zurich Insurance did not disclose the financial details of the deal, which is subject to regulatory approval.
The Russian arm of the Swiss insurance firm operates in the property and casualty insurance space and holds about 0.3% of the Russian non-life insurance market.
The insurer has been focused on supporting Zurich’s international customers’ operations in Russia.
Zurich Russia’s gross written premiums in 2021 stood at around $34m, which included $3m from local customers.
Russia’s continued aggression toward Ukraine and the unprecedented sanctions imposed by the US and its allies in Europe and Asia are making it near impossible for western firms to operate in Russia.
Last month, French banking group Societe Generale sold its insurance and banking operations in Russia.