Russia bans reinsurance with 'unfriendly states'; Generali's €683M exposure

TOP NEWS IN GLOBAL INSURANCE

* Assicurazioni Generali SpA said its general account investment exposure related to Russia and Ukraine as of Dec. 31, 2021, equaled €683 million, which includes its 38.5% stake in Ingosstrakh Insurance Co. at fair value of €384 million and amortized cost of €231 million. The Italian insurer's full-year 2021 consolidated operating result rose 12.4% year over year to €5.85 billion from €5.21 billion. Generali's board approved a list of candidates for the board renewal, which includes Andrea Sironi and current CEO Philippe Donnet as candidates for chairman and CEO, respectively.

* The Russian parliament has banned Russian insurers from conducting transactions with reinsurers in the U.S., U.K., Australia, Canada, Japan, Switzerland, countries in the European Union and other "unfriendly states" until Dec. 31 as part of its latest countermeasures against global sanctions, Inside P&C reported. The new legislation, which took effect March 14, also applies to reinsurers and brokers in "friendly states" that are controlled by firms based in unfriendly states.

➤ Insurers face myriad political risk, trade credit claims over Ukraine invasion

A range of different covers could generate a multibillion-dollar bill, but the market appears to have adequate reserves.

➤ Historic 2021 US individual life, annuity premium growth a tough act to follow

Rising interest rates may provide a boost to top-line growth for certain product categories in 2022, but most will be facing tougher year-over-year comparisons after robust 2021 expansion.

PROPERTY AND CASUALTY

* Allianz SE will no longer accept new customers in Russia and Belarus as it winds down its business in the two countries, Handelsblatt reported. Munich Re has been more reluctant to cut business ties so far, noting that it only has a "low presence" in Russia.

* Lloyd's of London said its activities in Russia and Belarus represent less than 1% of its business.

* California Insurance Commissioner Ricardo Lara urged insurers doing business in the state to review their financial holdings and divest from any direct investments in Russian assets or properties, noting that he would "explore all options" to compel insurers to comply.

* Gjensidige Forsikring ASA entered a distribution agreement for its home vendor insurance products with Norwegian brokerage group Kaland & Partners, Finanswatch.no reported.

* Edelweiss Financial Services Ltd. has transferred its remaining 9% stake in Gallagher Insurance Brokers Pvt. Ltd. to Arthur J. Gallagher & Co.

* There were 9,273 claims lodged for damage related to tropical cyclone Seroja as of Feb. 22, with 99.44% of claims accepted, according to the Insurance Council of Australia. The current estimated loss value is A$346.7 million.

LIFE AND HEALTH

* KB Financial Group Inc. intends to merge Prudential Life Insurance Co. of Korea Ltd. with KB Life Insurance Co. Ltd. by early 2023, Yonhap News Agency reported, citing an official from KB Financial Group.

REINSURANCE

* A Swiss Re AG spokesperson said the company will not accept new business with Russian and Belarusian clients and that it is reviewing current in-force business relationships in the countries, Dow Jones Newswires reported.

Arno Maierbrugger, Gerard O'Dwyer and James Lim contributed to this report.

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