Washington--The American Insurance Association formally namedMarc Racicot, who headed the Bush-Cheney re-election campaign, asits new president today.

He succeeds Robert Vagley, who headed the trade group for 19years. The AIA represents many of the most highly capitalizedproperty-casualty insurers and reinsurers doing business in theU.S. The post is one of the top lobbying jobs in Washington,D.C.--paying more than an estimated $1 million a year.

Mr. Racicot, 57, had returned as a partner in his law firm,Bracewell & Patterson, now Bracewell & Giuliani inWashington, D.C., after stepping down from heading the Bush-Cheneyre-election campaign in 2004.

He joined the law firm in 2001 after serving two terms asMontana governor, but left a year later to head the RepublicanNational Committee.

The law firm has its roots in Houston. The appointment is not asurprise; National Underwriter reported May 27 that the AIA wasnegotiating with Mr. Racicot to be its new president.

Representing the consensus industry view of the appointment, theIndependent Insurance Agents and Brokers of America issued astatement, saying it was "enthusiastic and very pleased to learn"of Mr. Racicot's appointment.

"Gov. Racicot is an excellent choice," Big "I" CEO Robert A.Rusbuldt said. "As a two-term governor and chairman of theRepublican National Committee, his leadership credentials areextensive and beyond question. He proved his mettle by beingre-elected governor and by heading his party through a hard-foughtelection cycle; the results speak for themselves."

The appointment was announced by John J. Amore, CEO, GeneralInsurance of Zurich North America and AIA board chairman. Mr. Amoresaid, "We looked long and hard to find the perfect fit for thiscrucial industry leadership position.

"Today, it is gratifying to announce that our exhaustive searchhas yielded a truly outstanding result," Mr. Amore continued."Governor Racicot is an impressive, extremely capable executive. Inaddition, he is intimately familiar with, and has enjoyed manysuccesses in, public policy making. We are very pleased that hewill be joining us at AIA to take over from our esteemed andlongtime leader, Bob Vagley."

Mr. Racicot said, "The AIA is widely regarded as one of the mosteffective business advocacy groups in state capitols and in thehalls of Congress--and I am looking forward to beginning this nextchapter of my career and immersing myself in the industrychallenges that must be resolved in the immediate future, such asextension of the national terrorism insurance program, as well aslonger-term priorities, such as addressing lawsuit abuse andmodernizing the industry's regulatory system."