(Bloomberg) – Munich Re, the world's second-biggest reinsurer, plans to spend 1 billion euros ($1.1 billion) by 2020 restructuring operations at its loss-making primary insurance unit in Germany.
The plan for Ergo's German operations includes cutting 1,835 jobs, or about 13% of the Dusseldorf-based company's workforce in Germany, according to a statement on Wednesday.
About a quarter of the industry's almost one million jobs may be lost in Europe over the next decade, including positions in policy issuing and claims management, according to McKinsey & Co. European insurers have become vulnerable to unpredictable levels of claims as premiums stagnate and investment income dries up amid record-low interest rates.
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