Lilienthal Takes Hengesbaugh's CNA CEO Spot
NU Online News Service, July 25, 11:34 a.m. EST?CNA Financial Corp. in Chicago said today that it was moving Stephen W. Lilienthal to the post of chief executive officer for CNA Financial Corp. replacing Bernard L. Hengesbaugh, who will become CNA Financial Corp. chairman.
Mr. Lilienthal will also become chairman and CEO of CNA Insurance Companies.
The change at the nation's No. 2 business insurer will become effective Aug. 26. A company spokesperson said she did not know immediately whether Mr. Hengesbaugh would preside as scheduled when the company has its Aug. 8 conference calls to discuss earnings.
Mr. Hengesbaugh replaces Laurence A. Tisch and Edward Noha who are stepping down from the board.
Among other recent actions the company said it would be selling its London reinsurance operations at a loss to focus on U.S. operations.
Mr. Hengesbaugh said he looked forward to serving in his new post, noting that, " a growing number of U.S. companies are adopting this good corporate governance practice of separating the roles of chairman and chief executive officer."
He said he had recruited Mr. Lilienthal, last July to serve as president and CEO of CNA Property & Casualty Operations CNA's largest operating division. As head of the p-c operating segment Mr. Lilienthal did a quick restructuring that included the establishment of a new leadership team, the company said.
Mr. Lilienthal, 52, came to CNA from The St. Paul Companies and before that USF&G.
Since last July, CNA share prices have decreased more than 40 percent.
Mr. Lilienthal declared in a statement today that the company is solid "with a strong legacy and a great future." He said under Mr. Hengesbaugh's leadership, the company had focused on underwriting, exiting non-strategic businesses and "investing in talent and resources to support great underwriting. CNA is now well positioned from the standpoint of professional talent, financial strength and favorable market conditions. We owe Bernie our thanks and gratitude."
Mr. Lilienthal said he had every expectation he could "deliver superior shareholder value" and promised the company would continue to provide its policyholders and the independent agents, "the highest quality service and insurance products in the industry."
Mr. Hengesbaugh said he was pleased with, "enormous progress" that CNA made during his tenure. He said it was now appropriate to let Mr. Lilienthal "take CNA to its next level of excellence."
"I expect this to be a very smooth transition. Steve is experienced. He knows the company. And, he will hit the ground running."
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