Zurich Insurance to exit general operations in Middle East

Switzerland-based Zurich Insurance Group said on Thursday it will gradually shut down its general insurance facilities in the Middle East at the end of this month, as part of a wider strategy to divest non-core assets and exit underperforming operations.

“This has been a difficult decision for Zurich, reflecting the challenges of building a strong and profitable franchise across multiple markets in the region in the current economic environment,” said Brian Reilly, chief executive officer of Zurich’s general insurance business in the Middle East.

The Swiss company expects to fully exit its general insurance operations by the end of 2016 or as soon as possible after servicing existing policies and fulfilling ongoing claims.

No exact figures were given by the company about possible job cuts in the Middle East. The insurer said it will maintain its life insurance coverage in the region.

“Zurich’s global corporate business will continue to underwrite new policies under the Dubai International Financial Centre (DIFC) reinsurance license and will stop underwriting new policies under the onshore license through branches in United Arab Emirates (UAE), Oman, Kuwait, Qatar, Bahrain, and Lebanon,” the group said in the statement.