Munich Re, the world’s largest reinsurance group, is seeking to cut as many as 18 jobs – or almost 12 per cent of roles – within its Irish software technology unit, Munich Re Automation Solutions, as part of a restructuring of the business.
The Dublin-based unit has entered into consultation with employees on 18 roles “which are at risk”, a spokeswoman said in response to questions from The Irish Times.
“Unfortunately, these roles have been affected by a recent restructuring within the business and are no longer viable. We will, of course, support all employees affected by this process and explore all options for them,” she said.
“We do not envisage any further reductions in headcount after this process is complete and Munich Re Automation Solutions’ future growth strategy and client support remain unaffected.”
The Irish company provides digital new business, underwriting and analytics solutions to the health and life insurance industries.
Bought by Munich Re in 2007, it has since grown to become a successful provider of automated insurance solutions globally, including its digital underwriting suite of products AllFinanz.
Munich Re Automation Solutions, led by chief executive Ross Mayne, has more than 140 clients across 40 countries, said its website.
The move to cut jobs follows rapid expansion over the past five years, in which it increased staff numbers from 86 to 155 – mainly comprised of software engineers. Much of the growth was signalled in late 2020 when Munich Re Automation Solutions announced it was creating 60 jobs in a €16 million investment, supported by IDA Ireland, to accelerate the development of new cloud products and services.
The company, which is based in the Central Park business district in Leopardstown, south Co Dublin, received a €5 million capital injection in November from its German parent.
While Munich Re Automation Solutions saw its sales rise 26 per cent in 2023 to €25.5 million, its net loss doubled that year to €6 million, it was stated in most recent set of annual accounts filed with the Companies Registration Office. The loss came as running expenses soared more than 46 per cent.
Separately, the Munich Re group faces losses of about €220 million as a result of damage caused by dozens of wildfires that have ravaged Los Angeles and surrounding areas in California in the past two weeks, said analysts at Berenberg, the German investment bank.
While some of the fires are still active at the time of writing, recovery work is under way to help the thousands of Californians and small businesses that have been affected.
The damage and economic loss from the fires is estimated to be as high as $275 billion (€270 billion), said Accuweather, a US weather forecasting service. Insured losses account for only a fraction of economic losses.
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