Lukoil Buys Into AIG’s Former Russian Subsidiary

Russia’s second-largest oil producer Lukoil has bought into insurance company GARDIA, a former subsidiary of AIG, one of the world’s biggest commercial insurers, GARDIA said earlier this week.

(Editor’s note: Reuters included a note with this article saying: “This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine.”).

AIG sold its subsidiary in Russia to local investors last year, following in the footsteps of many Western companies that left the country after the start of what Moscow calls a special military operation in Ukraine in February 2022.

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GARDIA said that as international reinsurance markets have become less accessible for the Russian oil and gas industry, managing technical and production risks in Russia and abroad has become relevant.

“The acquisition of the insurance company (by Lukoil) will help improve the quality of risk management, create additional insurance capacity and portfolio diversification,” it said.

(Reporting by Vladimir Soldatkin; editing by Mark Potter)