Tuesday, October 7, 2025
24.5 C
Lagos

Zurich Insurance Group Reports $424m Loss, May Sack 8,000

Last December, Zurich Insurance Group AG announced expanded plans to cut relocate or change at least 1,800 jobs in a bid to save money and revamp its struggling general insurance unit. Now, the number may hit 8,000.

News of this comes toward the end of Zurich’s Q4 2015 earnings announcement, which included a $424 million loss, and a 103.6 combined ratio for its struggling general insurance division.

Zurich Chairman and Interim CEO, Tom de Swaan pointed out in prepared remarks and Zurich’s earnings call that the company has accelerated its efficiency programme with an aim to save more than the $300 million initially targeted for 2016, and more than $1 billion by 2018.

De Swaan said those savings will come through the use of “new technology, lean processes and the off-shoring and near shoring of some activities.”

He added that as a result, about 8,000 “roles” at Zurich will feel the impact by the end of 2018. This includes “initiatives completed or announced in 2015,” de Swann noted in the earnings release, of which job cuts or relocations have already been put on the table.

During the earnings call, de Swaan and other executives did not directly address the job changes, focusing instead on broader actions taken to address General Insurance numbers.

“We have actions underway. Some have already started, and some have started to show positive signs,” de Swaan said. He added he expects that the executive team, lead by incoming CEO Mario Greco starting March 7, “will deliver much improved results in 2016.”

Zurich’s general insurance division suffered losses in Q4 due to winter storms in the U.K., a port explosion in China and other large catastrophe events. But Zurich also has struggled with U.S auto liability, global corporate property and North America commercial construction liability.

Zurich CFO, George Quinn explained during the call that some of the insurer’s struggles were as much a part of outside market forces.

In commercial auto, for example, he said that pricing, trends, and loss cost challenges are an “industry-wide issue,” but added Zurich was also slow to retreat from the line once problems became clear.

The lesson learned, Quinn said, is “speed of reaction,” which becomes clearer later in the year with decisions to exit lines such as retail and commercial coverage in the Middle East.

spot_img
spot_img
spot_img

Hot this week

Ecobank Nigeria Launches Upgraded Mobile App for Faster, Smarter Banking Experience

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

Ortom, NOA DG, Others to Feature as Panelists at GOCOP 2025 Conference

The Guild of Corporate Online Publishers (GOCOP) has announced...

AIICO Celebrates Retiring Employees: Honouring Decades of Service with Gratitude

Left - right: Adeleke Adeshina (rtd), Lanre Oladehinde (rtd.),...

Nigeria’s Banking Woes: How One South African Bank Outvalues an Entire Industry

It is a sobering reality that one South African...

Topics

China, India: World’s Largest Internet Markets

India has overtaken the United States to become the...

Union Bank Sets Up Mini Branch at Lagos Trade Fair

Following the recent unveiling of Union Bank’s new identity and in its bid to make banking simpler and smarter for customers and prospects, the Bank has announced that it is participating in the 2015 edition of the Lagos International Trade Fair to showcase its simpler and smarter banking solutions and also its rebranded service delivery.

African Start-Ups Shine at Web Summit 2017

Legazy returned to the 2017 Web Summit after having...

Premier League Transfer Spending Hits £500m

Transfer spending in the Premier League has reached £500 million this summer, £335 million short of last summer’s total with four weeks until the transfer deadline. Raheem Sterling’s move to Manchester City for an initial fee of £44 million has been the highest so far. Manchester United boss, Louis van Gaal has hinted at a “surprise” signing despite spending £83 million already.

European Watchdog Urges Re/Insurers to Suspend Dividend During COVID-19

  The European regulator has urged re/insurers to temporarily suspect...

BudgIT: States Should Domesticate National Policy on Women’s Economic Empowerment

BudgIT, a civic tech organisation raising the standards of...

Adeosun: DBN Will Catalyse Growth of SMEs in Nigeria

The Minister of Finance, Mrs. Kemi Adeosun has stated...

NIA Chairman, Efekoha, Lists Path to Insurance Sector Growth

Mr. Eddie Efekoha, Chairman, Nigerian Insurers Association says...
spot_img

Related Articles

Popular Categories

spot_imgspot_img