Zurich Insurance Group expects to record a $US275 million ($391.3 million) loss for last year, and has recruited Mario Greco, the CEO of Italy’s largest insurer Generali, as its new global CEO.

Its beleaguered general insurance unit is expected to make a $US100 million ($142.3 million) operating loss for the December quarter.

Severe storms in the UK and Ireland that triggered heavy flooding, plus other weather events including in Australia, have been blamed for the loss.

Zurich’s earnings also faced pressure from a “very high level of large current incident-year losses” in the three months to December.

“While these amounts represent Zurich’s current best estimate of the cost for the… events, the nature of many of the losses and the extended remediation period to complete repairs means the final cost remains uncertain,” the insurer says.

“The profitability of business underwritten [last year] continues to impact results, but this will improve over the course of [this year] as the steps taken to reduce exposure to large losses take effect.”

Zurich says its restructuring plan, which aims to deliver cost savings of $US300 million ($427 million) this year, has been accelerated, with charges of $US475 million ($676 million) to be recorded in the fourth quarter.

It also expects to incur a one-off impairment charge of $US230 million ($327.3 million) for the write-off of its German life business when results for last year are announced on February 11.

The Swiss insurer has previously announced plans to cut 1800 jobs as part of the restructuring plan.

Mr Greco, who was CEO general insurance at Zurich before joining Generali in 2012, will take over in May from Chairman Tom de Swaan, who has been working in the role on an interim basis since Martin Senn quit late last year.

“[Mr Greco] offers the rare combination of entrepreneurial spirit, deep industry knowledge and proven CEO experience that anchored our search for Zurich’s next leader,” Mr de Swaan said.

“His intimate understanding of our company and our industry and his track record as a leader make him a unique candidate for the role.”

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