Mergers Won't Mesh Without People Plan

  Monday, August 23rd, 1999 Source: National Underwriter

Insurer mergers will fail unless the people of both companies—the "human resource asset"—are carefully handled and kept in a positive frame of mind, a leading industry official warns. “You face inevitably an immediate problem with morale” and a consequent drop-off in productivity, according to Robert Scott, group chief executive of CGU plc in London. The merger last year of Commercial Union with General Accident created a company with £16 billion in revenues ($25.9 billion at current exchange rates) and 50,000 employees worldwide. The company is divided 50-50 between life and property-casualty business.

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