Zurich assurance is cutting jobs

Swiss insurer Zurich Assurance is willing to save 250 million USD per year by 2015 dismissing 800 people worldwide, or approximately 1.4% of its entire workforce. This measure is designed to increase the profitability of the group. Staff in direct contact with customers would not be affected.

The company announced that it will focus on the underwriting of profitable business, giving up non-profitable one which is crippling its portfolio. The company has revised its target return on equity downwards initially set at 16% by 2016 to a figure between 12% and 14%.