Zurich Financial Services, on Tuesday, said that it has being transferring bulk of its general insurance portfolios in Italy, Spain and Portugal to its Ireland unit in order to rationalize its European Union business. The transfer will help in simplifying the legal structure of the company as well as in improving the capital management.

In a statement, the Swiss-based Corporation said that the carry-over of the insurance portfolios is effective as on January 1.

According to the Swiss insurer, the transfers were only a part their plan to simplify the legal structure and to attain better flexibility in capital management, it would surely not affect the customers.

Zurich added that it has also figured out a similar plan for its general insurance business in Germany, which is expected to be implemented later this year.

The company has already transferred its British business to Zurich Insurance Plc (ZIP) in Ireland in 2009.

Mr. Markus Hongler, Chief executive officer of ZIP said that the streamlining is efficient for Zurich in both ways capitally and operationally.

Ms. Sylvia Gaeumann, Zurich spokesperson said that a local tax rate would be applicable on the EU-based businesses.