Recent weeks have been filled with speculation that Zurich Insurance South Africa, which offers personal and business insurance alike, may be looking to sell and move out of South Africa. The speculation certainly had clients and great deal of business insurance brokers worried, but this worry was put to rest at the end of February when the company announced that no decision had been made with regards to the sale of the company.
The speculation had encircled a statement issued by the insurance company which stated that it was in the process of evaluating its placement in the market, and if that placement was suitable with regards to South African assets. The company also announced that said evaluation was associated with a strategy that would redefine the company’s global footprint with a view to increasing profitability.
Zurich business insurance South Africa holds a four percent share of gross written premium with regards to the short-term market. Thus the possibility of the company pulling out of the country garnered an understandable amount of anxiety on the part of the broker network.
However, a statement made by Edwyn O’Neill, the CEO of Zurich’s South African efforts, assured concerned parties that no decision had been made on the issue of selling the company. That being said, O’Neill did note that the company is currently subject to a process that may, or may not, change the shareholding situation of Zurich’s South African operation. But what is most likely to set minds at ease is the fact that, according to O’Neill, a decision to sell would not compromise the value of the business, its products, or, perhaps most importantly, its broker network.
Is Zurich Business Insurance in Trouble?
Despite assurances, Zurich Insurance is, according to reports, investigating the sale of its Hong Kong and Singapore operations. Furthermore, the company’s falling shares and failure to meet performance targets resulted in a 2015 pay cut for its top management.
Whether this will have a significant impact on the company’s products remains to be seen, but it might be advisable for clients to explore business insurance quotes while they still have the luxury of time. If you are a Zurich client, business insurance quotes are fast and easy to secure on Biggy.co.za – and they might give you a safety net should Zurich announce plans to sell in the future.