By Jason Corcoran in Moscow
Benelux financial services group Fortis said yesterday it would withdraw from the insurance market in Russia.
Fortis employs about 70 people in Russia. It is not yet known whether the group’s decision will affect is joint asset management venture set up in 2007 with Russia bank KIT .
In a statement, Fortis said its businesses are expected to reach a critical size, make a meaningful contribution to the net result and have the capacity to generate returns that exceed the cost of equity.
It said: “Following a thorough review of Fortis’ insurance activities in Russia, the management concluded that these conditions could not be met within a reasonable time frame.”
