NU Online News Service, Feb. 22, 12:33 p.m. EST
Chartis says it has condensed its claims, operations and systems under one management team in an effort to get closer to fulfilling a combined ratio promise.
In the meantime, Chartis has lost one of its chief risk officers to The Hartford.
Chartis Chief Executive Officer Peter D. Hancock has told analysts and shareholders the property and casualty insurance unit of American International Group Inc. (AIG) expects to achieve a combined ratio in the low 90s by the end of 2015.
The move to allow one management team, led by Eric Martinez, to oversee the unified operations is a step toward that objective, Hancock says in a statement.
“The plan [to achieve a low 90s combined ratio as well as double-digit return on equity] requires successful execution of initiatives in four key strategic areas: business mix shift, loss ratio improvement, expense discipline, and risk selection,” Hancock says. “This unified management approach will help us achieve our goals.”
Martinez was appointed executive vice president of global claims, operations and systems. He previously served as president and CEO of United Guaranty Corp, AIG’s mortgage-insurance unit.
The promotion set off several subsequent moves within the company—each made to improve Chartis’ loss ratio and improve customer service, says the insurer.
Charles Schader steps in to the newly created role position of senior vice president of applied research. Schader, who formerly held the position Martinez now occupies, will work with actuaries and risk officers at Chartis and AIG “in the practical application of quantitative research to enhance reserving methodologies, claims outcomes, and underwriting risk selection,” Chartis says.
This time last year AIGused $4.1 billion to bolster loss reserves at Chartis.
Kim Garland steps into Martinez’s former role as CEO of United Guaranty. She was the company’s chief operating officer and a search is underway to find her replacement.
“I expect these three executives to be instrumental in allowing AIG to deliver on its 2015 goals,” says Robert H. Benmosche, president and CEO of AIG.
Hartford Hires Chartis’ Tom Tucker
Chartis may also be searching for a chief risk office of its global commercial group because the man who held the position, Tom Tucker, has joined Hartford as the chief underwriter for its commercial markets segment and head of specialty casualty.
Hartford says Tucker most recently served as chief underwriter and chief risk officer for Chartis' U.S. operations. Chartis says Tucker was its chief risk officer for global commercial markets and reported to Alexander Baugh, who was appointed Chartis’ chief risk officer and head of strategic planning at the start of the year.
Chartis says Baugh is currently reviewing the company's enterprise risk management. A replacement for Tucker could be named after the review.
Hartford is also looking to improve margins and develop profitable business. The hiring of Tucker and the realignment of other management positions “will help us accelerate the work already underway,” says Doug Elliot, president of the commercial markets division atHartford.
For Hartford, Tucker will oversee underwriting across commercial markets and lead the company’s specialty casualty segment.
Hartford also appointed Gary Thompson as the leader of sales and distribution in the middle markets division. Responsibilities of this title are in addition to his previous role as head of middle market product and underwriting, Hartford says.
A 35-year Hartford veteran, Thompson was most recently executive vice president of specialty commercial and chief underwriting officer of commercial markets.
Additionally, Mike Concannon will now serve as head of Hartford’s group benefits segment.