On Wednesday, FM Global and Allianz SE received an F and D rating from the Yale School of Management for how they have reacted to Russia’s invasion of Ukraine.
Several brokers and insurance companies, including Marsh & McLennan Cos. Inc. and the Italian insurance company Assicurazioni General SpA, received the grade A.
In its one-line explanation of the FM rating for FM Global, the Yale School of Management’s Chief Executive Leadership Institute noted the company’s “continued Russian relations” and “deep relationship” with the Russian insurance company Ingosstrakh.
In response to a request for comment, FM Global said it was currently reviewing its business relationship with Ingosstrakh.
“No premium flow comes out of Russia and we are investigating what our options are to best support our common customers,”; a spokesman for FM Global wrote in an email.
In an updated statement posted on its website on Wednesday, FM Global said it was reducing its design and requirements adjustment services in Russia.
Although the insurance company has customers located in Russia, it does not insure and will not insure Russian-owned companies and is not a licensed insurer in the country, according to the statement.
For multinational customers with foreign-owned assets in Russia, FM Global reinsures its locations there, says Johnston, a Rhode Island-based insurance company.
Allianz was among 69 companies that received the grade D for “buying time” or postponing new investments / development. Yale noted the insurance company’s move to “meaningfully reduce exposure to Russia.”
A spokesperson referred to a statement on March 14 in which Allianz confirmed that it was neither insuring new business nor making new investments for its investment portfolio in Russia.
In another statement issued on March 18, Allianz Global Corporate and Specialty SE, the insurance company’s corporate insurance unit, said they had stopped taking out new insurance business in Russia and put all renewal business there on hold.
Both FM Global and Allianz emphasized in their statements that they continue to comply with international sanctions and the laws related to the ongoing conflict.
The Yale list, compiled by Professor Jeffrey Sonnenfeld at the Yale School of Management after the February 24 invasion, includes five categories, which rate companies from A to F based on their withdrawal from Russia.
As of Wednesday, the list included: 178 companies with grades A that have completely left Russia; 192 companies with grades B that have temporarily restricted their operations while keeping the return opportunities open; 31 graded C to reduce current operations or scale back; 69 companies rated D – “purchase time” – which have postponed future planned investments or development while continuing significant business; and 38 companies with an F rating – “Digging In” – to continue business-as-usual in Russia.
Willis Towers, Watson PLC, who recently said they would leave their Russian operations, and Aon PLC, who announced that they had suspended operations in the country, are not mentioned in the list.