Zurich announces plans to cut group, general insurance costs

Zurich Financial Services Group (Zurich) has announced plans to reducing its total expenses (excluding commissions) by 5% or $500 million on a run-rate basis by 2013.
Included in this general group target, Zurich said it plans to reduce expenses in its general insurance segment by 7% or $350 million on a run-rate basis by 2013.
In addition, in the general insurance segment, the insurer said it plans to improve its combined ratio by three or four percentage points relative to global competitors by 2013.
The target for Zurich’s general insurance operations is a return on equity (ROE) of greater than 16% over the medium term.
The Zurich announcement does not break down how the costs will be reduced, or which regions will be affected.