Insurer promises not to cut jobs or commission payments in cost-cutting exercise
Zurich has vowed not to cut jobs or commission payments after announcing plans to slash $350m of costs in its general insurance division.
The Swiss insurer believes the cost-cutting can reduce combined operating ratio by three to four points better than competitors by 2013.
Zurich Financial Services chief executive Martin Senn said: “The economic conditions in developed countries will not improve a lot in the short term, and therefore, the group.”
Senn said the cost-cutting was ‘not about job reductions’.
Zurich paid out 16 francs per share in dividends for 2009, and analysts at Bank Vontobel expects at least 17 francs for 2010, according to FNAdiviser.
The insurer reported in early November an 18-percent drop in net profit for the first nine months of the year to 2.4 billion dollars. Its UK division, led by Stephen Lewis, lost more than £200m in revenue this year.
