Swiss Re announces 2,000 job cuts |
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Mon, 25 Sep 2006 12:50
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ZURICH - Top European reinsurer Swiss Re has announced that it would be downsizing 2,000 jobs by the end of 2007. Most of the jobs that are to be cut are Europe-based ones. The company hopes that these job cuts will allow it to save $300 million a year.
An estimated 1,000 jobs are to be cut in Europe, while 700 jobs will be lost in the US. Asian, Middle Eastern and African segments. This restructuring move is a part of Swiss Re's integration of Insurance Solutions, which it acquired last year for $7.4 billion. Insurance Solutions was formerly a GE reinsurance unit. In a statement Swiss Re said a large part of the job cuts would be attributed to natural attrition, while the rest would be a mix of early retirements and lay-offs.
Swiss Re had first intimated of a possible downsizing in July when it had already culled 250 jobs. The group, which operates in 30 countries, reported a 16 percent rise in first half profits last month. The net profits stood at SFr 1.6 billion (£686 million). The company also raised the premiums for "catastrophe-exposed property" insurance following the heavy toll taken by Hurricanes Katrina and Rita last year, which cost the insurance industry $60 billion in claims.
Although the profits were in line with expectations, several analysts pointed out that if they were higher, they could have cushioned the full-year profits.
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