Friday, November 11, 2016

Zurich insurance to Take $three hundred Million Loss on Russian Unit Sale



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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