Swiss Reinsurance Co., (OTC:SWCEY) the world’s second-biggest reinsurer, said on Thursday it intends to cut 10 per cent of its workforce over the coming twelve months in an attempt to simplify its operations and reduce costs.
The Zurich-based company also said it had appointed Agostino Galvagni as its chief operating officer, beginning May 1. The company replaced its chief executive officer, Jacques Aigrain, with industry veteran Stefan Lippe, in February.
The Swiss reinsurer announced net losses in 2008 of 864 million francs and incurred 5.9 billion francs in writedowns on assets, following the financial crisis.
The challenging environment forced the company to turn to Warren Buffet’s Berkshire Hathaway for a capital injection in February in order to protect its credit rating and balance write-downs on risky holdings.
The job-cuts announcement helped Swiss Re outperform other financial stocks Thursday. Swiss Re shares were up 5.8% in Zurich. The stock has lost 60% in the year to date, much worse than the insurance sector overall, which is down 20%.
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