Allianz To Rebuild Property Insurance Segment, Cuts Jobs- Report
30 November 2011 - 6:44PM
Dow Jones News
Allianz SE (ALV.XE) will restructure its German property
insurance operations, involving job cuts and the launch of new
products, to meet its long-term growth targets, the chief executive
of Allianz Germany, Markus Riess, tells Handelsblatt in an
interview published Wednesday.
"We are losing market share and profitability is neither where
it used to be, nor where we want it to be," Riess is reported as
saying, adding that the division must finally swing to profitable
growth.
The company expects sales in the property insurance segment to
increase to nearly EUR9.5 billion by 2014, in a stagnant market,
Reiss adds.
Additionally, Reiss expects to reduce costs by two percentage
points, but didn't provide specific numbers, since he also expects
premiums to grow at the same time. However, one percentage point
equals about EUR70 million to EUR90 million, he adds.
The company also plans to cut jobs in the property insurance
segment. It expects to eliminate 400 jobs out of 2,200 positions in
the business within the next three years, the report says.
Newspaper website: www.handelsblatt.com
-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500