WTW Is Latest Big Insurance Broker to Withdraw From Russia

Global insurance broker Willis Towers Watson (WTW) announced on Sunday that it will withdraw from all of its businesses in Russia in response to Russia’s war against Ukraine.

The announcement comes after competitor Marsh McLennan said last Thursday it would exit all of its businesses in Russia, and rival Aon said it is suspending operations in the country

“We continue to be dismayed by the crisis in Ukraine. WTW remains steadfast in our support for all our colleagues and their families in the region who have been affected,” stated Carl Hess, WTW CEO. ” We wholeheartedly wish for a peaceful solution.”

Hess said WTW intends to transfer ownership of its Russian businesses to local management “who will operate independently” in the Russian market.

“While we strongly believe this is the right decision, it was not made in haste nor without consideration for our dedicated Russian colleagues,” Hess added.

Marsh McLennan also said it would transfer ownership of its Russian businesses to local management.

Aon said it would put its staff in Russia on paid leave while continuing to monitor the situation.

Global insurer Swiss Re said on Monday it is not taking on new business with Russian and Belarusian clients and is not renewing existing business with Russian clients, Reuters reported.

Leading Italian insurer Generali said on Thursday it was pulling out of Russia after Moscow’s invasion of Ukraine, while Intesa Sanpaolo, Italy’s biggest bank, is reviewing its presence there.

Italian insurer Generali has said that it is closing its Moscow office and winding down its Europ Assistance business in Russia.

Last week, the insurance rating firm AM Best moved its country risk tier for Russia to a CRT-5 from a CRT-4 to reflect the “significantly heightened geopolitical, economic and financial system risk” in the country.

Sanctions against Russia have targeted the financial system, resulting in a deeply challenging and unpredictable operating environment for insurers, according to AM Best. Volatility in capital and currency markets has increased liquidity risks. Additionally, capital controls and the impact from sanctions will negatively affect cross-border payments.