Zurich financial have recently announced half-year losses of £1.3 billion and unveiled plans to make sweeping reforms, which include cutting 4,500 jobs. It is not clear where the jobs cuts will be made, but Independent Financial Advisers are expecting the cuts to be made in the insurance sectors. Zurich Financial has a number of other businesses such as Allied Dunbar, Threadneedle and Eagle Star.
An industry spokesperson commented that the cuts are likely to come from the insurance and life and pensions sections, as Threadneedle is one of the strongest parts of the business.
If the cuts do not save enough money then it would not be a surprise to see Zurich Financial selling off parts of the business and follow measures taken recently by Royal & Sun Alliance.
The news marks another step towards a diminishing pool of providers and less choice for you the consumer.