Allianz And Swiss Re Join Other Financial Companies Moving From Russia

Allianz terminated new business insurance in Russia
Swiss Re does not resume cooperation with Russian clients
European securities regulator says it ensures orderly markets
Deutsche changes position late Friday night
FTSE Russell divests four UK-registered Russian-focused shares

FRANKFURT/LONDON/ZURICH, March 14 – Allianz (ALVG.DE) and Swiss Re (SRENH.S) said Monday they are cutting Russian business as European financial institutions turn their backs on Russia.

The German insurer and Swiss reinsurer have joined Deutsche (DBKGn.DE), Goldman Sachs (GS.N) and JPMorgan Chase (JPM.N) banks as they pulled out of Russia following its February 24 invasion of Ukraine and subsequent Western government sanctions.

Movement will make others follow you.

Allianz said it has stopped insuring new business in Russia and is no longer investing in Russia for its own portfolio. More

Swiss Re stated that it does not conduct new business with Russian and Belarusian clients and does not renew existing business with Russian clients. In an emailed statement, Swiss Re said it was reviewing its current business relationship in Russia and Belarus. More

The decisions follow similar moves by other major European insurers and reinsurers that provide coverage for large projects such as power plants.

Insurance company Zurich (ZURN.S) is no longer taking on new domestic clients in Russia and will not reopen existing local business, a company spokesman told Reuters on Monday.

Hannover Re (HNRGn.DE) said last week that new deals and renewals for customers in Russia and Belarus were on hold, while Italian insurer Generali (GASI.MI) said earlier this month it was pulling out of Russia. More

Insurance broker Willis Towers Watson (WTY.F) also said on Sunday it was pulling out of Russia following similar moves by rivals Marsh (MMC.N) and Aon (AON.N).

Asset managers have said they will not make new investments in Russia, and many Russia-focused funds have been frozen because they cannot trade due to sanctions and countermeasures taken by Russia. More

European market surveillance agency ESMA said on Monday it was coordinating the bloc’s regulatory response to the conflict in Ukraine to ensure the orderly functioning of markets.

The British pension regulator said that the sector is not directly related to Russia, but that there are practical difficulties in selling Russian assets. More

Ukraine said on Monday it had begun “tough” talks with Russia on a ceasefire, immediate troop withdrawal and security guarantees after both sides reported rare progress in weekend talks despite Russian bombing. More

Russia calls its actions in Ukraine a “special operation”.

CLOTTING

Deutsche, which has faced harsh criticism from some investors and politicians for its ongoing ties to Russia, announced late Friday that it was winding down its business in the country. More

The move came as a surprise to the Frankfurt lender, which had previously argued it needed to support multinational firms doing business in Russia.

The London Stock Exchange’s UK group also said late Friday that it was suspending all products and services for all customers in Russia, days after news and commentary was suspended in the country under new laws in Moscow. More

Index provider FTSE Russell said on Monday it will remove four UK-listed companies focused on Russia, including Roman Abramovich’s Evraz (EVRE.L), after many brokers refused to trade their shares.

Evraz, along with Polymetal International (POLYP.L), Petropavlovsk (POG.L) and Raven Property Group (RAV.L), will be excluded from all FTSE indices during the March review, the statement said.

FTSE Russell said it received feedback from its external advisory committees and market participants that trading in shares was “severely restricted” as brokers refused to deal in securities, eroding market liquidity. More

JPMorgan says most of the projected risk to European banks from the shock in Russia will come from commodity and economic spillovers as the sector has been falling since late February.

However, European banking stocks (.SX7P) broke off recent day lows and rose 3.8% on Monday.

Additional reporting by Mark Jones, Ian Withers and João Manuel Mauricio, written by Caroline Cohn, editing by Katherine Evans

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