Allianz Group denies media information on full exit from Russian market

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Allianz Group denies media information on full exit from Russian market

MOSCOW. May 13 (Interfax) - Allianz Group has denied information appearing in the media saying that it is fully withdrawing from the Russian insurance market, the insurance company said in a statement.

"A number of Russian media outlets published incorrect information on May 12, 2022 on the possible cessation of Allianz Group's work in Russia, citing news agency Reuters. This information does not reflect reality," Allianz said.

Reuters cited Allianz CFO Giulio Terzariol on Thursday as saying that there is a very high likelihood that the group will fully shut down its operations in Russia. According to Allianz, the group could lose approximately 400-500 million euros exiting Russia, Reuters said.

The company is continuing to fulfill its obligations to clients in Russia in full compliance with the terms of insurance contracts and Russian legislation, "and however the situation further develops, continuity of operations for employees and clients of the company will be ensured," Allianz said.

Allianz Group said in an official press release on March 9, 2022 that it would not be concluding new contracts in Russia and was "decisively reducing exposure in an orderly manner" along all lines of business. "This position remains unchanged today," Allianz said on Friday.

Allianz Group currently has two companies on the Russian market, Allianz Insurance Company JSC and LLC IC Allianz Life.

According to the Bank of Russia, Allianz Insurance Company JSC was 43rd among Russian insurers in 2021 in terms of total premiums. Its overall volume of premiums fell 8% to almost 4 billion rubles compared to 2020. Payouts rose 45.6% to 1.7 billion rubles. The company's overall market share totaled 0.25% in 2021 and 0.3% in 2020.

LLC IC Allianz Life was 19th on the Russian insurance market in terms of premiums in 2021. Premiums grew 12.3% to 17 billion rubles compared to 2020. Payouts increased 32.4% to 9.6 billion rubles. The company had a market share of 0.9% in 2021 and 1% in 2020.