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The reduction will be achieved “to the greatest extent possible” through natural exit and termination by mutual agreement.
Listed insurer Uniqa wants to cut a total of around 600 employees in the group by 2022, mainly in Austria. The board of directors and the supervisory board had decided and approved a far-reaching strategic program today, as the group announced on Wednesday night. The reduction will be achieved “to the greatest extent possible” through natural exit and termination by mutual agreement. A social plan had been agreed.
At the same time, the insurance industry announced one-time expected expenses for reduction and impairment of goodwill in individual countries totaling around 210 million euros.
According to the information, the job cuts will be reflected in the 2020 consolidated financial statements with expenses for restructuring measures of up to around 110 million euros. On the other hand, there would be “specific savings” of up to 50 million euros a year.
No forecast for 2020 possible
The resolution on the “Uniqa 3.0 strategy program” also means a review of corporate planning in the medium term and “subject to significant changes in the cost of capital parameters” will cause deterioration in goodwill in the countries of Serbia, Bulgaria and Romania for an amount of around 100 million euros for the 2020 financial year.
Due to persistently high uncertainties regarding macroeconomic and financial developments, Uniqa Insurance Group AG “is currently unable to provide a forecast for the financial year 2020,” according to the company the night before Thursday’s third quarter 2020 figures.
(WHAT)
