Zurich will effectively exit its general insurance businesses in the Middle East by the end of 2016 or as soon as possible thereafter. It has already begun a phased closing to new retail and small business customers.
However, the Swiss-based insurer said it still remained firmly committed to its life insurance business in the region and would continue with its corporate reinsurance businesses.
Zurich’s global corporate business will continue to underwrite new policies under the Dubai International Financial Centre (DIFC) reinsurance license, though will stop underwriting new policies under the onshore license through branches in UAE, Oman, Kuwait, Qatar, Bahrain and Lebanon.
Global restructure
The move is part of Zurich’s new strategy to focus on its core business by prioritising investment in markets, where it sees the best potential for growth, managing other markets for value, and turning around or exiting underperforming markets.
On Tuesday the company stopped writing new life policy business in Singapore, having already announced at the end of September that it was handing over its entire approximately 160-strong tied agency network in the city state to the Nexus Group
Two weeks ago it also announced the departure of long-serving senior executive Andy Robinson, most recently Zurich’s chief propositions officer, which has led to speculation that further announcements may be on the way from Hong Kong.
Limited growth
In the Middle East, Zurich said its review had found that while the region remained an attractive market, it could see little potential to profitably grow the General Insurance business and achieve an operating scale that warranted the continuing investment of capital and management resources.
“We will continue to service our existing policies in the General Insurance business for the remainder of their duration, as well as ongoing claims management and the fulfilment of its obligations to our customers. However, no policies will be renewed,” the company said in a statement.
Zurich will continue to service its existing policies in the general insurance business for the remainder of their duration, as well as ongoing claims management and the fulfilment of its obligations to customers.
