You've been in the insurance business for nearly 30 yearsnow, in many leadership roles. What is it that makes heading upAmerican Modern an attractive challenge for you, following youraccomplishments at USAA?

It's an attractive challenge because I have the opportunity tolead a company that has a long tradition of success to “the nextlevel” as part of Munich Re's U.S. insurance operations. I knowfrom my personal experiences that there isn't a successful companyon the planet that doesn't have opportunities for improvement, andthat's what excites me. I think my experiences at USAA and othercompanies will allow me to work with other dedicated employees atAmerican Modern to foster an environment that will allow us tobecome a multibillion-dollar company in the next 10-13years.

How has the specialty insurance business changed in thelast five years, and how do those changes inform the directionAmerican Modern might take in the currentmarket?

Well, some of the changes started more than five years ago, butthe impact of those changes has become more pronounced in recentyears. One major change involved the maturation of the manufacturedhome market and the subsequent significant decline in newshipments, which began more than a decade ago. As a leader in themanufactured/mobile home insurance market, that change required usto rethink our distribution and product strategies so as toreinvent ourselves in the specialty marketplace.

Another change involved an evolving attitude by standard-linescarriers toward some niches that were previously considered theexclusive domain of the specialty carriers, as these companiesembraced certain preferred segments of the motorcycle, RV andwatercraft markets to feed their need for growth. But, even asthese carriers blurred the boundaries somewhat between standard andspecialty lines, they also presented a significant opportunity forus to develop alliances with them that would allow them to offerproducts on our paper to segments of the recreational andresidential markets that they didn't have an underwriting appetitefor…especially for risks like vacant, seasonal and rental homes.So, the changes have been impactful, but we have been able to stayahead of the curve in developing strategies to successfully copewith the evolving specialty marketplace.

What are some of the specialty lines in which you feelAmerican Modern has had a significant impact of late, and what aresome of the ones that might be trending up or showing more promiseat the moment?

We have had tremendous success with our specialty-dwellingproducts aimed at vacant, seasonal and rental homes. Our deepexperience in pricing and underwriting these kinds of risks servesus well in meeting the needs of agent partners, strategic alliancepartners and the end consumer. We have also seen dramatic growth inthe collector-vehicle market due to the strengthening ofrelationships with several key specialty agent partners. We possessa very deep knowledge base in thisarea.

American Modern's subsidiary companies are rated A+ byA.M. Best and the group has been selected for 14 consecutive yearsas one of the Top 50 P&C insurance companies in the U.S. by theWard Financial Group. How would you sum up the strategy behindmaintaining that standard of client service that keeps AmericanModern held in such high regard?

While the A.M. Best and Ward ratings are largely a reflection ofour company's financial stability and results, there is certainlyan implication of the kind of superior client service that it takesto sustain those lofty ratings and financial performance. Thestrategy isn't all that complicated. The challenge is in theexecution. Put simply, we strive to achieve “zero defects” in thedelivery of our products and services to our business partners andcustomers. We are a company of expertise, and we do our best to letthat expertise show in all ourinteractions.

How would you describe the benefits of being owned byMunich Re? How would you characterize thatrelationship?

American Modern was a solid company before it was purchased byMunich Re. But there is little doubt that being part of a globalorganization with expansive resources has helped make us an evenbetter company when it comes to risk management and investments ininfrastructure. I tend to refer to the relationship as “the best ofboth worlds” because we can enjoy the benefit of having access totheir expertise and resources while being allowed to run ourbusiness as we see fit given our deep knowledge and success in thespecialty primary insurance market.