Allianz and Swiss Re join other financial firms in switching from Russia

Frankfurt / London / Zurich (Reuters) – Allianz (ALVG.DE) and Swiss Re (SRENH.S) On Monday, it said it would reduce Russian business as European financial institutions turn their backs on Russia.

German insurance company and Swiss reinsurance company join German banks (DBKGn.DE)Goldman Sachs (GS.N) JP Morgan Chase (JPM.N) that exited Russia after its invasion of Ukraine on February 24 and subsequent Western government sanctions.

Movements will put more pressure on others to follow.

Allianz said it has stopped securing new business in Russia and is no longer investing in Russia for its own portfolio. Read more

Swiss Re said it did not initiate new business with Russian and Belarusian customers and did not renew existing business with Russian customers. In an emailed statement, Swiss Re said it was reviewing its existing business relationships in Russia and Belarus. Read more

The decisions follow similar actions by other major European insurers and reinsurers, which provide cover for large projects such as power plants.

Zurich insurance company (ZURN.S) A company spokesperson told Reuters on Monday that it is no longer accepting new domestic customers in Russia and will not renew existing domestic business.

Hannover Ri (HNRGn.DE) He said last week that new work and renovations for customers in Russia and Belarus are pending, while Italian insurance company Generali (GASI.MI) It said earlier this month that it would withdraw from Russia. Read more

Insurance broker Willis Towers Watson (WTY.F) It also said on Sunday it would withdraw from Russia following similar moves by Marsh’s opponents (MMC.N) and help (AON.N).

Asset managers have said they will not make new investments in Russia and many Russia-focused funds have been frozen because they are unable to trade following sanctions and countermeasures by Russia. Read more

The European Union’s market watchdog (ESMA) said on Monday it is coordinating the bloc’s regulatory response to the conflict in Ukraine to ensure markets continue to operate in an orderly manner.

Britain’s pension regulator said the sector had little direct dealings with Russia, but that there were practical difficulties in selling Russian assets. Read more

Ukraine said on Monday it had begun “difficult” talks with Russia on a ceasefire, an immediate troop withdrawal and security guarantees, after both sides reported rare progress in negotiations over the weekend despite Russian bombing. Read more

Russia describes its actions in Ukraine as a “special operation.”

let down

Deutsche, which has faced sharp criticism from some investors and politicians over its continuing ties with Russia, announced late Friday that it would be winding down its business there. Read more

It was a surprising reversal by the Frankfurt-based lender, which had previously argued that it needed the support of multinationals operating in Russia.

The British London Stock Exchange group also said late Friday that it would suspend all products and services to all customers in Russia, days after suspending the distribution of news and commentary in the country in the wake of new laws in Moscow. Read more

Index provider FTSE Russell said on Monday it would cut 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) Raven real estate group (RAV.L)will be removed from all FTSE indexes during the March review, it said in a statement.

FTSE Russell said it received feedback from its external advisory committees and market participants that trading in shares was “severely restricted” because brokers refused to deal with the securities, hurting liquidity in the market. Read more

JP Morgan says the majority of risks expected for European banks from the Russia shock will come from spillovers to the economy and commodities, with the sector declining since the end of February.

European banking stocks (.SX7P) It retreated from its lowest levels in recent days, and rose 3.8% on Monday.

Additional reporting by Mark Jones, Ian Withers and Joao Manuel Mauricio; Writing by Caroline Cohn; Editing by Catherine Evans

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