After putting its Russian business on hold in the wake of the country's invasion of Ukraine, Zurich is leaving the country altogether.
The Zurich Insurance Group has agreed to sell its business in Russia to the eleven members of its business unit for an undisclosed price, thus concluding its business dealings there, according to a statement on Friday from the company.
Under the new ownership structure, the company will operate independently from Zurich and under a different brand.
Russian Roadblock?
To be sure, the sale is still subject to approval by regulatory authorities, including those in Russia, which is a potential roadblock to the deal.
The business that the parent company is selling is Zurich Russia, a property and casualty insurer that has around a 0.3 percent share of Russia's non-life insurance market. Zurich Russia was mainly engaged in supporting the parent company's international customers and their Russian operations.
Last year, Zurich Russia had gross written premiums of around $34 million, of which only $3 million was from domestic customers, so that isn't likely to have a major impact on the parent company.
With sanctions imposed on Russia, other insurers such as Swiss Re and Germany's Allianz have left and now Zurich has joined the exodus.
