Munich Re withdraws from Russian business

22 March 2022 — Daniela GHETU
Munich Re supports the sanctions against Russian economy. The Group will not renew existing contracts in Russia and Belarus, and new business has been suspended. The Group will do the same with its investments in the region, the German reinsurer said in a press statement.

"The events of the last few days have shaken us all deeply. Especially at this moment, it is the task of all peace-loving people to show unity and support. Our full solidarity goes out to the people affected in Ukraine and their families. Munich Re stands for a peaceful and democratic world. Russia's invasion is an act contrary to international law. The attempt to place the law of the strongest above international law is completely unacceptable. We expressly support the sanctions initiated by the Western community of shared values - also in the knowledge that they will not remain without consequences for our economies," CEO Joachim WENNING said.

Munich Re will only make exceptions to this rule - sanctions regulations permitting - if the suspension of business negatively affects persons or companies in need of protection.

Commenting on the impact of the war in Ukraine and the subsequent sanctions on the Group's business, the latest Munich Re report said: "Munich Re's insurance business in Ukraine and Russia is small. War risk is excluded in all relevant lines of business. We therefore do not expect any significant direct impact on our business. In terms of its overall portfolio, the investments Munich Re has in both countries are likewise only small. Given the far-reaching sanctions the Western community of values has imposed, defaults among the investments held in connection with these countries cannot be ruled out, and the risk of write-downs is therefore elevated. Secondary effects on the global capital markets would impact Munich Re - as they would all other market players."

Munich Re provides humanitarian aid

Munich Re is making a contribution to alleviating the hardship of the hundreds of thousands of war refugees. The Group donates to the international aid organizations Save the Children, Red Cross, and SOS Kinderdoerfer so that particularly vulnerable groups such as families and children can be quickly provided with essentials such as shelter. As people are now primarily fleeing the battle zone via the Polish border, Munich Re is currently concentrating its aid on this region.