GMAC Exec Named Chubb's New Head

In addition, Chubb announced that Joel J. Cohen, the carriers lead director, was named non-executive chairman of the board.

The board decided to separate the chairman and CEO functions in accordance with best practices in corporate governance, Chubb said in a statement.

Born in Jersey City, N.J., Mr. Finnegan, 53, joined GMACs tax department in 1976. He held various positions in the corporations treasury department, including international banking, foreign exchange and benefits funding. In 1985, he was named director of strategic planning for GMAC. He became chief financial officer of GMAC Mortgage Corp. in 1986.

Returning to GM in 1987, he served as assistant treasurer of worldwide benefits and compensation, and in 1989 became assistant treasurer of international financing operations.

Mr. Finnegan became executive vice president and chief financial officer of GMAC in 1992, and was named vice president and treasurer of GM in 1995.

In 1997, he became president of GMAC, and assumed his current positions in 1999.

Chubb noted that Mr. Finnegan is no stranger to the insurance industry, as GMAC offers several insurance products, including extended warranty protection, dealer inventory insurance and personal auto insurance. The financial services corporation reported revenue of $15 billion in 2001, the carrier said.

Mr. Finnegan lives in Wyckoff, N.J., with his family.

"I am excited to be joining a company of Chubbs quality and reputation," said Mr. Finnegan in a statement. "I have always regarded Chubb as the class act in the industry. It has a well-deserved reputation for maintaining financial integrity, settling claims with fairness and speed, providing superior service and products to customers and producers, and maintaining a progressive workplace for employees."

Mr. Finnegan added that "with the help of my new colleagues at Chubb, I intend to get up to speed quickly on the company and the industry, so that we can tackle the issues that face the company head-on."

"I couldnt be more pleased with my successor," said Mr. OHare, in a statement. "His values, style and personality are an excellent fit with Chubb, and he is an outstanding financial services executive, people manager and strategic thinker. I am confident he is the right person to lead Chubb into the future."

Mr. Finnegan will also serve as chairman of the board and CEO of Federal Insurance Company, the largest of the Chubb group of insurance companies, and as chairman and CEO of Chubb & Son, a division of Federal.

The company also announced the promotion of Thomas F. Motamed, executive vice president and chief operations officer, to vice chairman and chief operating officer. Mr. Motamed will also serve as president and chief operating officer of Federal and Chubb & Son.

John Degnan, president, and Michael OReilly, executive vice president, have been promoted to vice chairmen and will retain their current responsibilities. All three will report to Mr. Finnegan.

All of these changes will be effective Dec. 1, Chubb said.

On Oct. 30, Standards & Poors in New York City placed its "Double-A-minus" rating of Chubb on "credit watch with negative implications." The rating agency said it made this move because of the carriers announcement that it was increasing reserves for asbestos exposure by $625 million. S&P did not comment on whether the naming of Mr. Finnegan would have any impact on their rating decision.

Rating agency A.M. Best, based in Oldwick, N.J., announced on the same day that its "A-double-plus" rating of Chubb was unaffected by the reserve announcement.

Chubb, founded in 1882, has 12,600 employees serving customers in 134 offices in North America, South America, Europe and Asia. The company reported revenues in 2001 of $7.8 billion.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, November 18, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.