Restructuring underway at Ergo insurance

German insurer Ergo has initiated a restructuring program, a plan that provides for the shedding of 13% of staff members operating in Germany by 2020, which stands for 1 835 jobs suppressed. The Munich Re subsidiary has emphasized that the positions related to sale will be mainly targeted by this policy.

Ergo is intent on slashing its costs by 280 million EUR (317 million USD) by 2020 and renewing with profits as of 2017. In 2015, the insurer posted 227 million EUR (303 million USD) in losses. It will set up in 2017 an online insurance company, which is likely to help it achieve its objectives.

Read also:

• Ergo will no longer market life policies with guaranteed rate
• Ergo, towards new acquisitions in Asia