Zurich has laid off up to 27 staff as it absorbs the former Associated Marine operation into its mainstream business.

The changes, which were announced in a low-key marketing note to brokers from EGM SME Bobby Lehane, mark the end for the once-dominant Associated Marine brand. In 2004 Zurich took full control of company, which was originally set up as a joint venture between several major insurers.

A statement supplied by Zurich in response to insuranceNEWS.com.au enquiries says control of the marine insurance operation company will move from Associated Marine’s Melbourne base to Zurich’s Xpress Underwriting Centre in Sydney.

A spokesman says the “leadership, underwriting and distribution structures will mirror Zurich’s other general insurance lines and… will be represented by the strength of the Zurich brand”.

The layoffs resulting from the changes – the spokesman says 25 permanent positions are involved – include the Melbourne-based position of National Product Manager Marine Ross Lawrenson. Most of the staff affected so far will leave the company over the next month.

The spokesman says some of the staff affected by the change “have indicated they may be interested in taking up relocation to Sydney to continue to work for Zurich. After relocation, redeployment and further recruitment in Sydney, as few as 10 roles may actually go.”

She says “fast-flow” marine cargo business is operating on Z.stream under the Zurich brand “and the Associated Marine brand has not been in the forefront in recent times”.

CEO Daniel Fogarty says Zurich recently put eight marine cargo products online through the online Z.streamXpress system – “the first insurer in Australia with an end-to-end lifecycle solution for marine”.

“That’s a significant investment in our marine business and demonstrates our commitment to maintaining a leadership role in marine insurance,” he said.

Mr Lehane says in his note that the Melbourne-based SME marine underwriting centre “will transfer to become a team within our Xpress underwriting centre in Sydney”.

Two new national roles have been created to oversee the marine business – Head of Marine SME and Head of Marine Corporate.