“Sanctions also will affect the balance sheets of Russian insurers and their relationships with international partners,” added Todor Kitin, financial analyst. “The valuation of investments would be affected by a prolonged equity market downturn, any increase in the Russian Central Bank’s policy rate or a widening of credit spreads. On the other side of the balance sheet, higher-than-anticipated inflation would impact claims costs, with potential implications for the adequacy of reserves.”
