Clerical Medical has announced a major structural change that will see the company split into Europe...
Clerical Medical has announced a major structural change that will see the company split into European, offshore and international sections.
The company hopes the new organisation will help double its European sales by 2002 and UK offshore sales by 2003.
The new parts will be three entirely separate business divisions with their own management teams, chosen from the current Clerical Medical International business.
Clerical Medical Europe will be based in Luxembourg. It will have a substantial presence and will be focused on the growing European market. It aims to quadruple its European business by 2005.
Clerical Medical Offshore, based on the Isle of Man, will focus on new business and customer services for the growing UK offshore market, as well as the expatriate market which comes primarily from the Middle East and the Far East.
Also based on the Isle of Man, Clerical Medical International will maintain customer services for markets in which the group no longer looks for new business.
The company thinks segregation will make it easier for each segment to focus more closely on its core activities, making the planning and execution of a business strategy easier.
The changes should be finished in 12 months' time and new staff will need to be hired.
Robert Walther, chief executive officer at Clerical Medical, said: "The markets in which we operate have changed significantly over the last five years. Where a 'one size fits all' philosophy worked in the past, the markets have now developed significant differences, making such a broad-brush approach unsustainable.
"The new structure will allow us to provide complete focus on, and a full commitment to, the European and UK offshore opportunities - which are exceptionally attractive.
"During the next 12 months there will be a series of announcements from Clerical Medical's international arm that will once more set the shape of international financial services."
As at the end of last year, the group had a total of £1.3bn in international business, up from £896m in 1998. Of that, £631m came from the UK offshore market, £452m from Europe and £200m from the rest of the world.
Subsidiaries included, Clerical Medical has funds under management totalling more than £27bn, including investment funds, pensions and life assurance products.
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