Munich Reinsurance Co.’s ailing primary insurance unit, ERGO Insurance Group, said Wednesday that it plans to lay off 1,800 employees as part of a $1.1 billion restructuring plan.

The plan, which is scheduled to be completed by 2020, also includes exiting 18 locations in Germany and bulking up its digital capabilities, Duesseldorf, Germany-based ERGO said in a statement on its website. The company said it is targeting gross cost savings of roughly 540 million ($600.2 million).

By 2021 at the latest, the company said, ERGO expects annual net profits of over 500 million ($555.8 million), thus making a sustainable contribution to the result of its…

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