Munich Re eyes costs of insurance unit revamp
FRANKFURT Aug 7 (Reuters) - Munich Re expects the costs of restructuring its insurance unit Ergo will run into the triple-digit million euro range, Munich Re's Chief Financial Officer said on Tuesday.
The cost of the restructuring was one reason Munich Re did not significantly raise its 2.5 billion euro ($3.1 billion)profit target for the full year after releasing strong second-quarter results, it said on Tuesday.
Ergo has said it expects to cut up to 1,350 jobs as it streamlines its sales organisation.
The overhaul would prevent the unit from reaching its target of 400 million euros in net profit this year, the company said. ($1 = 0.8056 euros) (Reporting by Jonathan Gould)
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