ZURICH (Bloomberg) — Zurich Financial Services AG, Switzerland’s largest insurer, will merge its North American support services to save $300 million over the next three years in areas such as procurement, human resources and real estate.The services will be combined under a new subsidiary, named ZFUS, which will serve Zurich Financial’s Farmers Group Inc., its North America commercial unit and other North American operations, the Zurich-based insurer said yesterday.

Chief executive officer James Schiro, who last month reported record third-quarter earnings, aims to add $2 billion to profit in the next three years by cutting costs and improving underwriting. About one-third of the gains are forecast to come from the insurer’s US units.

The new structure will help Farmers and the commercial division boost productivity “through economies of scale and other efficiencies,” Schiro said.

Zurich Financial spokesman Angel Serna said the company doesn’t plan to cut any jobs with the creation of the new services unit.

The shares rose 2.75 francs, or 0.9 percent, to 317 Swiss francs, bringing the stock’s gain to 13 percent this year.

ZFUS will be comprised of two new entities — Farmers Services LLC and Zurich North American Services LLC — and combine their information technology, accounting, financial, audit and communications functions. About 5,100 employees will move to ZFUS from Farmers and some 1,100 will come from North America Commercial.

The two groups “will evolve over the next few years into a single shared services operation”, Zurich Financial said.

Farmers chief executive officer Paul Hopkins will take the “strategic lead” at ZFUS, the company said in the statement. Hopkins will work with the head of North America Commercial, Axel Lehmann.

Farmers employees affected by the reorganisation will transfer to the new division on January 1 and North America Commercial staff are expected to be shifted by mid-2007.