FM Global stops reinsuring business in Russia
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FM Global stopped writing new and renewal business for risks located in Russia on April 2, the mutual property insurer’s top executive said last week.
The decision followed criticism about the insurer’s “continuing Russian relationships” by the Yale School of Management late last month.
FM Global reinsured risks for its multinational policyholders that have locations in Russia through an agreement with Moscow-based Ingosstrakh Insurance Co.
In an interview at Riskworld, the Risk & Insurance Management Society Inc.’s annual conference, Malcolm C. Roberts, CEO of FM Global, said the insurer has been reviewing its position in Russia since the country invaded Ukraine in February.
“What we’ve been working on for the past month, as our clients are our shareholders as well, is how do we find something for them while we make a retreat,” Mr. Roberts said.
With Russia’s restrictions on sending money to U.S. companies, no premiums can be collected from Russia and FM Global cannot pay claims in Russia, he said.
“We can’t operate as FM Global for our clients, so we made the decision to cease operations for any renewal and new business, and we will no longer have any connection as a reinsurer in Russia,” he said.
FM Global derived about $8 million in premium from risks located in Russia.
“We’ll stick by the policies as they run through but will encourage (policyholders) to rewrite with a local insurance company,” Mr. Roberts said.
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