Zurich Insurance Group says net income last year slumped 53% to $US1.8 billion ($2.54 billion), as the insurer prepares to shed more jobs than previously announced and deepen organisational cuts.

Chairman and Interim CEO Tom de Swaan, who has held the latter role since the departure of Martin Senn in December, says Zurich is taking “rigorous actions” to turn around.

“We have accelerated our efficiency program and now aim to exceed the previously communicated cost savings target [this year] of $US300 million ($423 million), and are on our way to achieving group-wide cost savings of more than $US1 billion ($1.41 billion) by the end of 2018.”

Savings will be achieved through the application of “new technology, lean processes and the offshoring and near-shoring of some activities”.

The shake-up will result in up to 8000 job losses by the end of 2018. Previously, the group-wide “transformation” was expected to affect 1800 positions.

Zurich’s general insurance business remains its biggest challenge.

General insurance operating profit last year fell 71% to $US864 million ($1.22 billion). The business recorded an operating loss of $US120 million ($169 million) in the fourth quarter.

The combined operating ratio for the year deteriorated 6.7 percentage points to 103.6%.

Gross written premium and policy fees fell 6% to $US34 billion ($48 billion).

Zurich says the poor general insurance result is partly due to large losses and natural catastrophe claims, including severe flooding in the UK and Ireland in December and $US275 million ($388 million) from the chemical warehouse explosions in the Chinese port of Tianjin in August.

“Our key priorities [this year] will be turning around our general insurance business and continuing actions to position the group… including enhancing efficiency and sharpening the group’s retail footprint,” Mr Senn said.

Mario Greco, previously the head of Italy’s largest insurer Generali, will become CEO on March 7.

He was CEO general insurance at Zurich before joining Generali in 2012.