Zurich coverage organization AG, the largest Swiss insurer,
said the sale of its Russian retail unit will cause an anticipated loss of
about $300 million.
The insurer said it's miles promoting the enterprise to
Moscow-based Olma group and intends to keep and build its Russian company
enterprise, consistent with a declaration on its internet site these days.
“while we put money into priority markets, we either flip
around or go out the ones which are underneath-appearing,” Mike Kerner, leader
executive officer of widespread insurance at Zurich, stated within the
announcement. “whilst saying our annual outcomes 2013, we said that the Russian
retail business had not advanced consistent with our expectancies and that we
would discover alternatives for it.”
Aviva %, the U.okay. insurer, remaining yr offered its
Russian unit, following inside the footsteps of numerous ecu financial
establishments that exited the Russian retail market after failing to advantage
scale. Barclays percent, HSBC Holdings percent and Banco Santander SA have all
bought their patron banking operations in Russia during the last three years
after being unable to compete with state-controlled creditors.
The sale to Olma, a brokerage and funding-services employer,
amounts to 1 billion rubles ($30 million), consistent with Zurich. The business
consists of about 1.2 million policies representing gross written charges of
7.1 billion rubles [$213 million] in 2013, Zurich said in the statement.
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