Liberty Mutual expands into Russian P&C market
by Gill Montia
Story link: Liberty Mutual expands into Russian P&C market
Liberty Mutual is acquiring Russian firm, KIT Finance Insurance, in a move that will allow Liberty to enter Russia’s $21 billion property and casualty insurance market.
The deal has been struck with KIT Finance Holding Company, the ultimate owners of which are JSC “Russian Railways” and NPF “Blagosostoyanie” (the pension fund company of Russian Railways).
KIT Finance Insurance began operations in mid-2008 as a direct distribution insurer, providing automobile and property insurance in St Petersburg and Moscow.
It has since become a multi-line, multi-distribution channel company with its own sales force and multiple bancassurance and affinity partnerships.
Liberty Mutual group president and chief executive officer, David H Long, comments: “We believe KIT Finance Insurance provides an attractive platform from which to invest in the rapidly growing Russian non-life insurance market.”
He adds: “It’s a dynamic company with a driven management team as indicated by annual growth of twenty-seven percent.”
Headquartered in St Petersburg, KIT Finance Insurance wrote nearly $50 million in gross written premium in 2011, with approximately 63% coming from automobile insurance.
The company recently expanded operations into the Russian cities of Novosibirsk, Perm, Orel and Krasnoyarsk.
Financial terms of the transaction have not been disclosed.