Marsh McLennan to exit all Russian business
Global broker will divest operations to local management
US broking and consulting group Marsh McLennan will exit all of its businesses in Russia amid the ongoing war in Ukraine.
Marsh McLennan plans to transfer ownership of its Russian businesses to local management who will operate independently.
The company did not state a timetable for the transfer nor did it state the size and extent of its dealing in the country.
Dan Glaser, president and chief executive of Marsh McLennan, said: "This is not a decision we have taken lightly and we join all those calling for a swift and peaceful resolution to this deadly conflict.”
He added: “We condemn the unprovoked attack by the Russian government against the people of Ukraine. Having watched with horror the tragic human toll in Ukraine, we feel compelled to take this action."
Hannover Re has also said it is pausing underwriting in Russia, but its business there is not said to be significant, totalling around $1m.
Earlier rating agency AM Best said it has downgraded Russia to CRT-5, its worst country-risk tier, from CRT-4, citing the significantly heightened geopolitical, economic and financial system risk in the country amid the ongoing military incursion into Ukraine.
A wide range of sanctions have been imposed on Russia in the wake of the invasion, which continues to grind on into its second week amid ferocious resistance from the Ukrainian army. The Moscow Stock Exchange remains closed as a result of falling stock prices and the rouble has effectively collapsed against the US dollar.
This week the UK government gave space and aviation reinsurers until March 28 to exit Russian business when it announced a further set of sanctions.
It has also been reported war risk insurers are getting cold feet over the potential impact of sanctions and are declining to quote on calls at Russian ports in areas affected by fighting.