Munich Re to spend $1.12 billion to restructure ERGO unit

Munich Reinsurance Co. is looking to spend €1 billion ($1.12 billion) by 2020 to restructure its loss-making primary insurance unit, ERGO Insurance Group, reported The Guardian Nigeria.

Munich Re plans to cut 1,835 jobs at ERGO as part of the restructuring program.

ERGO's CEO Markus Riess said that the insurance unit's sales force and administration will also be streamlined, generating total net savings of €280 million by 2020.

The changes will ensure that Ergo contributes €500 million annually to Munich Re's earnings from 2021 at the latest, added Mr. Riess

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