Credendo's exit from Russia
Since the start of Russia’s military aggression against Ukraine on 24 February 2022, Credendo has taken all appropriate measures to completely exit the Russian market.
As early as from February 2022, Credendo no longer insured cross-border transactions with Russia. Besides, clear instructions were given at that time to Credendo’s Russian subsidiary, Credendo – Ingosstrakh Credit Insurance, to limit its operations to a ‘standby’ level. In order to ensure full compliance with the sanctions in place, Credendo also stopped providing any kind of financial assistance (such as in the form of reinsurance) to its Russian subsidiary.
As a result of these measures, the gross real exposure on Russia of all Credendo entities but Credendo – Ingosstrakh Credit Insurance, was reduced from EUR 965.5 million at the end of February 2022 to EUR 163.8 million at the end of June 2023. The remaining exposure relates to risks in run-off, which have been underwritten prior to February 2022.
Moreover, Credendo – Export Credit Agency decided in June 2022 to sell its majority participation (67%) in its Russian subsidiary. However, the smoothness of the share deal process is hindered by elements Credendo – Export Credit Agency does not control, such as the regulatory approvals required from the Russian authorities and a changing legal landscape.
In anticipation of the effective transfer of its participation in Credendo – Ingosstrakh Credit Insurance, Credendo took the decision to maintain a strict operational distance with its Russian subsidiary at the beginning of 2023. Accordingly, all board members of Credendo – Ingosstrakh Credit Insurance appointed by Credendo resigned from their mandate and Credendo fully stopped intervening in the management of its Russian subsidiary.
Credendo’s exit from Russia implies that its Russian subsidiary is no longer part of the Credendo group consolidation perimeter. Consequently, the current participation in Credendo – Ingosstrakh Credit Insurance has been reported in Credendo’s 2022 consolidated financial statements as discontinued operations.
Credendo is convinced that the above measures have been taken in full compliance with the sanctions in place and to the best interests of its clients, employees and other stakeholders.