MORE than 60 jobs hang in the balance after Zurich Financial Services based in Swindon announced the closure of its Zurich Life Assurance division, following its sale to Swiss Re, the world's largest life and health reinsurer.

The servicing and administration of Zurich Life Assurance, which accounts for approximately three per cent of new business within the Zurich UK Life business, will be transferred to the Computer Sciences Corporation, Swiss Re's third party administrators, in 2004.

According to a spokeswoman for Zurich Life, whose offices are based in the town's Tri-Centre complex, about 60 staff will be affected by the closure.

She said: "These employees deal with new business and customer servicing and obviously, now that we're closing the company, their jobs here won't exist anymore.

"But what we are hoping is that around 40 will transfer to the new company, because obviously they will still be needed to service the policies," the spokeswoman said.

"Those employees who are not transferred we will look to deploy to other departments , but ultimately we cannot rule out there may be some redundancies," she added.

Commenting on the closure, Alan Woods, general secretary of the Union of Finance Staff, the only union recognised by Zurich, said: "The concern our members face is that they may start thinking: 'Does our division fit the same profile as Zurich Life, and if so, what does the future hold for us?'"

Zurich has already agreed that the union can be involved in negotiations with Swiss Re over the possible transfer of staff to the new company.

According to Mr Woods: "A major concern is what such a transfer might mean in terms of pension rights.

"So we will looking at this issue very closely, and if anyone is concerned about any aspect of this closure, we would ask them to contact our helpline on (01242) 263463."

The value of the Zurich Life Assurance business is estimated to be $460 million.

Upon completion of the sale, Swiss Re will make a cash payment of $240 million with the balance of the transaction value remitted as dividends to Zurich ahead of completion.

Sandy Leitch, chief executive officer of the Zurich Financial Services UK, Ireland and South Africa/Asia Pacific Business Division said:"We are transforming our Life businesses in the UK.

"This involves sharpening our focus, reducing expenses, strengthening our overall capital position, and growing profitable new business.

"This transaction contributes to all of those aims," Mr Leitch said.