OLMA Group (OLMA) has entered into an agreement with Zurich Insurance Group to purchase its general insurance retail business in Russia for RUB1bn ($30m).

Zurich’s retail portfolio includes around 1.2 million policies, casco, motor third party liability, property and personal accident, which are sold to individuals and small and mid-sized firms through agencies, partnerships and direct channels.

In 2013, the firm’s policies represented gross written premium volume of RUB7.1bn ($220m).

The purchase of Zurich’s insurance retail business will allow OLMA to achieve its aim of developing its retail insurance business in the country and will allow Zurich to focus on its corporate business.

Zurich General Insurance CEO Mike Kerner said the transaction is a proof-point of their 2014-2016 strategy.

"While we invest in priority markets, we either turn around or exit those that are under-performing. When announcing our Annual Results 2013, we said that the Russian retail business had not developed according to our expectations and that we would explore options for it. We believe that the sale to OLMA is in the best interest of our customers, employees and shareholders," Kerner added.

The transaction, which is subject to regulatory approvals, is expected to close in the third quarter of 2014.