US insurer Liberty Mutual has sold its Russian business, almost eight years after acquiring it

Liberty Mutual has sold its Russian insurance arm to Sovcombank, a privately-owned Russian banking group.

The US insurer entered the Russian market in March 2012 when it bought non-life firm KIT Finance, with offices in Moscow and St Petersburg.

The transaction is expected to close in the first quarter of 2020, eight years after the insurer entered Russia’s non-life market.

The sale of the subsidiary, known as Liberty Insurance PJSC, to Sovcombank, remains subject to regulatory approvals.

Sergey Kovalchuk, general director, Liberty Insurance PJSC, commented: “Our team is pleased to become part of Sovcombank Group and will continue to provide first-class insurance services throughout Russia as part of the banking group.”

Dmitry Gusev, Sovcombank PJSC’s chairman of the board, added: “This transaction is a continuation of our strategy of building a universal bank and acquiring expertise and competencies in key sectors of the financial market.

“Liberty Insurance is headed by an experienced team of managers, the company employs highly qualified employees, whom we look forward to in Sovcombank group. We will do our best to make the transition period as simple as possible for employees and customers.”