International industry giant Zurich Insurance, which reported a massive profit surge for 2016, is not targeting big acquisitions and job cuts, according to its chief executive.
During an analyst conference call on Thursday when its full-year results were announced, CEO Mario Greco reiterated that the company is not keen on acquiring major businesses.
“There have been a lot of rumours and a lot of chats on M&A. Our position is again unchanged,” Greco said. “We have a strategy, which is not based on extraordinary transactions, is not based on M&A.”
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Greco explained that Zurich’s purchases in 2016 were all “focused transactions” on certain markets and customer segments. The deals, he said, were acquisitions seen to create further opportunities for the company and strengthen its market position.
While Zurich is not actively pursuing major acquisitions, Greco said the company is still always on the lookout.
“We watch and scan the market every day… we’re not seeking acquisitions and we will not be delivering our strategy through acquisitions,” Greco said in an interview with CNBC.
“Whenever we find something that makes sense… we would definitely step up and do what is needed to do,” he added.
Greco also told CNBC that the company’s simplification and cost-cutting drive did not require a further reduction in workforce.
“Simplification doesn’t require further job cuts. We live in economies that unfortunately do not create a lot of jobs... Job cuts are not our target and we are not there to cut jobs,” Greco was quoted as saying in an online report by the US news network.
According to a Reuters report, Greco also said that the insurer will not target any specific number of job cuts through 2019. He added that it will be very hard to create new jobs in the coming years.
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