Zurich Insurance targets further cost reductions

Posted On: May. 22, 2015 12:00 AM CST

Switzerland-based Zurich Insurance Group Ltd. will reduce costs by more than previously planned in order to reverse a fall in its earnings, Bloomberg reports.

Martin Senn, CEO of Zurich, said that the insurer would make additional annual savings of at least $1 billion by the end of 2018.

Zurich would reduce costs at the general insurance division by around $200 million by the end of 2016, added Mr. Senn.

The insurer's profit from general insurance business decreased 20% to $706 million in the first quarter of 2015.