After losses in recent months, Swiss Re CEO Christian Mumenthaler is taking a closer look at the insurer and is undertaking a major reorganization.

As management and executive departures and rumors already indicated, Swiss Re is undergoing a reorganization. The leading Swiss reinsurer announced on Thursday, its reorganization is aimed at simplifying structures, increasing efficiency, and offering better customer service. Subject to regulatory approval, the reorganization will take effect on April 3.

Regional Heads in Charge

The focus is on Swiss Re's core reinsurance business to be split into P&C Re and L&H Re, each with full responsibility for associated underwriting and claims management processes.

Urs Baertschi, currently European head of reinsurance, will head P&C Re, and Paul Murray, currently Asia Pacific CEO, will head the new L&H Re division.

Moses Ojeisekhoba, who currently heads the reinsurance business, will lead global clients & solutions. This unit will include the client management teams for Swiss Re's global reinsurance clients, public sector solutions, subsidiary Iptiq, and Reinsurance Solutions.

Resignation of CUO

Corporate Solutions, the business with corporate clients, will continue as a business unit under the leadership of Andreas Berger.

Group-level Chief Underwriting Officer (CUO) responsibilities will be reassigned primarily to the CUO of P&C Re and L&H Re, and to group risk management. As also reported by finews.com, Thierry Léger, the previous CUO, resigned as a member of the group executive board and Group CUO with immediate effect, with Mumenthaler taking over his duties on an interim basis.

The duties of the regional presidents will also be reassigned, as the roles will no longer exist in the new structure, with the reorganization not expected to change Swiss Re's financial reporting.

Losses Suffered

Mumenthaler said «the planned changes will emphasize performance accountabilities and bring clear efficiencies. The simpler set-up with shorter decision paths will also result in enhanced client focus.»

Swiss Re has also recently fallen behind its peers, reporting a group loss of $285 billion in the first nine months of 2022. The group warned last October that it is unlikely to meet its group return on equity target of 10 percent for 2022.