Dubai: Zurich announced on Thursday that it will exit general insurance in the Middle East by the end of 2016, though it will continue to run its life insurance business.
From November 30, the firm will begin a phased closing to retail and small business customers, with existing portfolios being put into run-off, it said in a statement.
The firm, which declared worldwide profit of $2.5 billion (Dh9.19 billion) for the first nine months of 2015, said the move will involve job losses and changes, but said it was unclear how many positions would be affected.
It will continue to underwrite commercial policies under its Dubai International Financial Centre (DIFC) reissuance licence, but will stop underwriting new policies through its other branches in the UAE, Oman, Kuwait, Qatar, Bahrain and Lebanon.
The move follows a review which found there was little opportunity for Zurich to grow profitably in the region and a decision to focus its core business in areas where it sees the best growth potential.
“This has been a difficult decision for Zurich, reflecting the challenges of building a strong and profitable franchise across multiple markets in the region in the current economic environment,” Brian Reilly, CEO of Zurich’s general insurance business in the Middle East, said in a statement.
“Zurich deeply regrets the impact on our employees and the inconvenience to our general insurance customers and partners across the region,” he added.
