MS Amlin plans staff cuts
MS Amlin — a global reinsurer with a Bermuda branch — is aiming to reduce staffing costs by about 10 per cent, according to trade press reports out of Britain.
The move comes after a year of heavy catastrophe losses for the industry and consequent reinsurance price rises that were lower than carriers had hoped for.
The Insurance Insider reported that the company, which employs 2,200 people globally, was aiming to reduce the number of roles by about 140, or 6 per cent.
Charles Philipps, the veteran chief executive officer, is set to retire next month. The Insider reported that his successor, Simon Beale is undertaking a wide-ranging review of the business, which will assess the effectiveness of MS Amlin’s corporate structure and office locations which include Bermuda, Zurich, the Benelux countries and Singapore.
The company’s UK operation, which employs about 60 per cent of MS Amlin’s staff, is expected to bear the brunt of the cuts.
MS Amlin’s Bermuda offices are at Seon Place, 141 Front Street, where it employs about 65 people. It is understood that the company has no plans to leave Bermuda, but a number of back-office roles on the island may go.
A spokesman for the firm told The Royal Gazette: “MS Amlin is progressing a number of ongoing projects aimed at repositioning the business for a sustainable and profitable long-term future, amid the continuing challenging market conditions.
“As part of this, following a thorough review and after careful consideration, the Executive Committee has taken the difficult decision to reduce expenses through headcount and other people-related costs. As a result, a number of roles will be impacted.”
The spokesman declined to talk about the specific impact on the Bermuda operation.
MS Amlin posted a loss of £589 million ($833 million) for the first nine months of its fiscal year to December 31, 2017, according to an earnings report from its Japanese parent company MS&AD.
The loss was driven by 77.8 billion yen ($735 million) of catastrophe losses.
The Insider quoted from a staff circular sent out by Mr Beale, which stated: “I recognise that this is a difficult time for everyone involved and every effort will be made to ensure those affected will receive our utmost care and attention.”
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