Zurich Insurance Group will cut about 800 jobs globally by the end of 2015 to save around $250 million per year, and help reduce costs and improve profitability.
The job cuts, which are equivalent to 1.4 percent of its total headcount, will remove management layers between the group and its business units. Customer-facing activities will not be affected.
“We continue to make significant progress towards our strategic goal to make Zurich a focused and more profitable business,” said chief executive Martin Senn.
Senn said that Zurich would invest in global corporate and mid-market business and its high-margin retail insurance lines while turning around or exiting non-core, under-performing insurance businesses.
Zurich also pledged to grow operating earnings through 2016 by reducing complexity, as it lowered its target for return on equity from 16 percent to 12–14 percent through 2016.
Senn stressed that Zurich is striving to be at the upper end of that goal and that he would be disappointed if the company was still at 12 percent in three years.