Restructuring in the insurance industry show no signs of slowing down: At R + V, one of the largest corporate restructurings in the company’s history is already in the starting blocks.
Under the motto “Growth through Change” (Wachstum durch Wandel), the R+V group prepares for future challenges by making sweeping structural changes by 2022. Due to demographic change, many employees are expected to retire in the coming years. Additionally, insurers are under pressure to restructure due to a period of low interest rates and the ongoing digitalisation of the industry among other factors, while they nonetheless continue to generate excellent sales. R + V obtained a top result in the 2016 financial year, for example: consolidated profit before taxes amounted to €682 million and gross premiums increased by 1.6 percent to €14.8 billion.
As a corporate objective, R + V announced at its financial statements press conference in April of this year that it intends to increase its volume of premiums to €20 billion by 2022. The cooperative insurer is also due to celebrate its 100th anniversary in 2020. In order to achieve the objectives of “Growth through Change”, R + V wants to invest around €100 million over the next years. All processes and procedures at all R + V locations will be put to the test, but, wherever possible, job cuts will be avoided. According to the information currently available, sites will be closed in external field sales, but new jobs will be offered to all current employees. Internally, there should be greater flexibility between the tariff-free R+V Servicecenter GmbH and the management companies which are bound by the rules of the collective bargaining agreements. R+V currently employs a total of 15,121 people in Germany.
In-House Legal Team (Wiesbaden): Axel Döhr (Head of Employment Law), Dr. Stephanie Braun-Fey – known in the market
General Works Council Consultant: Pflüger (Frankfurt): Dr. Norbert Pflüger – known in the market
The employment law team of the Cologne-based law firm Seitz now belongs to a number of teams who are regularly engaged for restructuring projects by insurance companies. In particular, the team around name partner Dr. Stefan Seitz has also lent its support to Gothaer in large collective legal measures for quite some time. For the law firm, this is the first major project undertaken for R + V. As far as is currently known, the team received the mandate via a contact on the executive committee.
Restructuring in the insurance industry is currently a big issue among employment lawyers: A joint team made up of Noerr and the boutique employment law firm Maat from Munich worked alongside Ergo on a big project. As early as 2015, Generali went through a major restructuring with the help of Hogan Lovells.
The renowned Frankfurt employment lawyer Norbert Pflüger and his law firm have been working for the General Works Council of R + V Insurance for several years and worked, for example, alongside employee representatives from the insurance company during a restructuring of external services three years ago.