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Munich Re removes 900 jobs around the world

by

Justine Montminy

April 26, 2018 11:30

In the framework of its efforts to cuts, the reinsurer Munich Re has announced the elimination of approximately 900 positions around the world. The new was first published by Reuters last February, without being made public by the reinsurer.

The chairman of the board of directors of Munich Re, Joachim Wenning, explains this decision by a desire to simplify the structures of the company and the reinsurance process. “Therefore, we will be able to manage a growing business with fewer resources. We anticipate a savings of more than € 200 million per year before tax. “

The reinsurer, however, has announced that a total of 1.3 billion euros in dividends will be paid to its shareholders for the year 2017.

Digital Transformation

Munich Re also expects to focus on its digital transformation in order to strengthen its existing operations and to open new business opportunities.

“We are developing new business models digital, such as the Internet of things (Iot). Munich Re is already a leader on the market of the cyberassurance. The digital transformation will allow us to secure our profit potential for the future, ” says Mr. Wenning.

The Internet of things is the materialization of the Internet through objects such as cars, buildings, or any other element that communicate with each other, collect or exchange data over a network connection, an electronic chip, or a sensor.

2.8 billion euros by 2020

Mr. Wenning has confirmed that the profit forecast for 2018 is between 2.1 billion and 2.5 billion euros. “Munich Re is again ready for growth. For the first time in five years, we are once again able to increase our forecasts of profits compared to the previous year. We will continue to maintain this positive trend in the future. By 2020, we intend to increase our earnings of approximately € 2.8 billion, ” he said.

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