STOCKS NEWS EUROPE-Swiss life up on restructuring speculation
Shares in Swiss Life surge 3.9 percent, outperforming a 0.4 percent rise in the European insurance sector, on speculation of a restructuring at the life insurer.
Traders say the market is expecting that Swiss Life could announce far-reaching measures at its investor day next week, with the focus on its beleaguered financial advisory arm AWD.
Swiss Life, which has already taken sizeable provisions for AWD and is thoroughly reviewing the unit, said earlier this month it couldn't rule out a write-down.
Citing a person close to the matter, The Wall Street Journal Deutschland reports on Wednesday that Swiss Life plans to cut up to 500 jobs at AWD as it merges the unit with other operations, potentially resulting in a three-digit million euro write-down.
Swiss Life was not immediately available for comment.
Swiss Life's AWD unit suffered a decline in sales in the third quarter, highlighting the challenges the insurer faces in turning around the German unit.
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