Zurich rate rises save jobs

Zurich Financial Services chief executive James Schiro says he will not have to cut job but premiums must to rise.

In an interview with newspaper Sonntag, asked whether Zurich will cut jobs, Schiro was quoted as saying: "I hope not. The insurance industry is still doing well. Life insurance is in demand, people are driving less and therefore there are fewer accidents."

Premiums were likely to rise as business risks increase and as revenue from capital employed declines, he said. "We have to be very careful with our capital. We need it to cover the claims of our customers," he said.

He also said Zurich make an acquisition if one came up but that the group would focus on expanding organically in growth markets such as Eastern Europe, Russia, China and Latin America as well as in Spain.

He also said the group had no plans to go into the banking sector, preferring to focus on its core insurance business.

Schiro said he had no intention of becoming chairman after he steps down as CEO at the end of the year, adding that he would like to return to America.