FM Global stopped writing new and innovative deals for risks in Russia on April 2, the mutual manager of the mutual insurer said last week.
The decision followed criticism of the insurance company’s “continued Russian relations” by the Yale School of Management at the end of last month.
FM Global reinsured risks for its multinational policyholders who have seats in Russia through an agreement with Moscow-based Ingosstrakh Insurance Co.
In an interview at Riskworld, Risk & Insurance Management Society Inc.’s annual conference, Malcolm C. Roberts, CEO of FM Global, said that the insurance company has reviewed its position in Russia since the country invaded Ukraine in February.
“What we̵7;ve been working on over the last month, because our customers are also our shareholders, is how to find something for them while we do a retreat,” Roberts said.
With Russia’s restrictions on sending money to US companies, no premiums can be withdrawn from Russia and FM Global cannot pay receivables in Russia, he said.
“We can not act as FM Global for our customers, so we decided to discontinue operations for possible renewal and new business, and we will no longer have any connection as a reinsurer in Russia,” he said.
FM Global received approximately USD 8 million in premiums from risks in Russia.
“We will stick to the insurances as they run through but will encourage (policyholders) to rewrite with a local insurance company,” Roberts said.