Liberty Mutual Enters Russian Market

NU Online News Service, March 29, 10:37 a.m. EDT

Boston-based insurer Liberty Mutual Insurance Group says it has acquired the Russian insurance company KIT Finance Insurance from KIT Finance Holding Co.

Liberty says the acquisition now enables it to enter Russia’s $21 billion property and casualty insurance market.

Headquartered in St. Petersburg, KIT began operations in mid-2008 as a direct distribution insurer providing primarily automobile and property insurance in St. Petersburg and Moscow. Since then, KIT has become a multi-line, multi-distribution channel company with its own sales force as well as multiple bank and affinity partnerships.

The company wrote nearly $50 million in gross written premium in 2011, says Liberty, with approximately 63 percent coming from automobile insurance. The company recently expanded operations into the Russian cities of Novosibirsk, Perm, Orel and Krasnoyarsk.

The ultimate owners of KIT are JSC Russian Railways and NPF Blagosostoyanie, the pension fund company of Russian Railways.

While the parties have not disclosed the financial terms of the agreement, KIT Finance Holding Co. says the proceeds will be used to repay a loan of Russian Railways to KIT Finance Investment Bank.

“We believe KIT Finance Insurance provides an attractive platform from which to invest in the rapidly growing Russian non-life insurance market,” says David H. Long, Liberty Mutual Insurance Group president and chief executive officer. “It’s a dynamic company with a driven management team as indicated by annual growth of twenty-seven percent.”

Liberty notes that for all of 2011 it reported net written premium of more than $31 billion, of which $8.2 billion, or 26 percent, came from its international operations.

KIT joins Liberty Mutual's international local business operations that sell to individuals and businesses in three geographic regions: Europe, including Spain, Portugal, Turkey, Poland, Ireland and now Russia; Latin America, including Venezuela, Brazil, Colombia, Argentina and Chile; and, Asia, including Thailand, Singapore, China (including Hong Kong) and Vietnam.

The company says private passenger automobile insurance is the single largest line of business for Liberty Mutual’s international country operations. 

Comments

Resource Center

View All »

Making Coverage Letters Work for Your Clients

If you're a broker or insurance buyer with any length of service in the commercial...

Complimentary White Paper: The Compression of Workplace Time

How brokers and carriers respond to the compression of workplace time will create significant competitive...

The Changing Insurance Consumer: 6 Ways to Create Profitable Relationships

Today’s mobile and web-savvy consumers have new expectations when it comes to interacting with your...

Contractors General Liability Coverage 102

What is a prior work exclusion? Which option is right for my client? Why do...

Sign up today to get a 50% matching credit -...

Insurance marketing sometimes seems like it's a game of swings and misses, but we're here...

Guide: 5 Steps to Selling Cyber

Cyber risk and data security is on the agenda of every business owner and executive....

Citation Correlation

Do rigger and signalperson qualifications correlate with the cause of crane and rigging accidents? ...

Complete Guide to Electronic Signatures in Property & Casualty Insurance...

In property and casualty insurance, closing new business quickly is key. Learn how to leverage...

INSTANT ACCESS: Complimentary Sales Closer Questionnaires

Help property owners or managers compare your commercial residential property insurance coverage vs. the competition....

Determining Vacant Property Perils and Valuations

Are your clients fully covered for Vacant Properties? In this economic climate, your insureds may...

Looking for Markets?

Search Kirschner’s Insurance Directory to help service your hard to place risks.

497 Risk Categories | 70,000 P&C Insurance Markets

kirschners
Specialty Markets Insight eNewsletter

Receive updates and analyses on hard to place and challenging coverages. Sign Up Now!

Advertisement. Closing in 15 seconds.