EMCC European Monitoring Centre on Change

Württembergische Lebensversicherung

Company/Organisation:
Württembergische Lebensversicherung

Geographic Location

Country: Germany

Company

Sector: Financial services
Financial and insurance activities
65 - Insurance, reinsurance and pension funding, except compulsory social security
Number Employed: 11000
Group: W&W

Employment Effects

Announcement Date: 28-06-2006
Planned Job Reductions min: 1550
Planned Job Reductions max: 1750
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-12-2009

Additional Information

On 28 June 2006, Wüstenrot & Württembergische AG (W&W), one of Germany’s largest financial service providers, announced the cut of 1,550 to 1,750 jobs at its affiliates till the end of 2009. These figures include job losses that had already been announced in the aftermath of the aquisition of the Karlsruher Versicherungsgruppe. In October 2005 the insurance companies Württembergische Versicherung and Württembergische Lebensversicherung, both affiliates of the financial group W&W, merged with the Karlsruher Versicherungsgruppe. In March 2006, W&W announced the loss of 500 jobs within its insurance affiliates. On 28 June 2006, the figure was increased from 500 to 750. The reduction in the insurance sector is due to synergy effects that result from the acquisition of the Karlsruher Versicherungsgruppe in last October. The overall figures also include another 800 to 1,000 jobs that will be lost within the group’s building societies and saving banks. Up to now, different duties such as purchasing, logistics, human resources development and organisational management were handled by the different affiliates themselves. These duties shall be combined into a bundle leading to a redundancy in jobs. At the moment, the W&W employs 11,000 persons. W&W wants to restructure its corporate group, in order to heighten its profitability. Till the end of 2009, the equity return 4.2% in 2005 shall be doubled. In 2005, the W&W-Group posted a profit of EUR 98 million.