Evan Greenberg Promoted At ACE

Evan Greenberg Promoted At ACE

NU Online News Service, June 23, 2:32 p.m. EST?Evan Greenberg, has been promoted to president and chief operating officer of ACE Limited, the Bermuda-based company said today

Mr. Greenberg, previously a vice chairman with responsibility for ACE's overseas general and global reinsurance operations, will have the added responsibility for the day-to-day operations of the parent company, ACE said.

In 2001, before joining ACE, Mr. Greenberg had served as the president and COO of American International Group, where his father Maurice Greenberg is chief executive officer.

The company announcement said Brian Duperreault, ACE chief executive officer, will continue to have responsibility for financial and treasury functions as well the office of general counsel.

ACE said the change for Mr. Duperreault will afford him more time to focus on strategic issues. Dominic Frederico vice chairman of ACE Limited will retain his duties of overseeing the North American and Financial Services businesses, ACE said

Analysts at Morgan Stanley, which has managed public securities offering for ACE Limited and provides the firm with investment banking services, said they viewed the changes favorably, "though we take them largely as they are represented--as realignment and not a significant restructuring. The management team remains intact."

Morgan Stanley said it sees the realignment as playing to the personal strengths of the managers involved.

"We have long viewed Brian Duperreault as the strategic thinker of the organization and it is clearly interesting that he will now have more time to evaluate ACE's future role as a major, global insurer. In our view, ACE is in need of a strong COO with the capacity to carefully manage growth and the administrative challenges of a widespread organization. We expect that Mr. Greenberg will bring those skills to the job."

Otherwise, Morgan Stanley said it remains "Underweight on ACE, despite the recent premium growth and strong underwriting results. We view ACE as a company with uniquely divergent risks and opportunities.

"As for opportunities, we believe that ACE is a solid underwriting organization with well-diversified global franchise. We see those benefits as being offset by significant (in our view) balance sheet risks and restricted financial flexibility (rating agency scrutiny, commitments to deliver the company and achieve capital adequacy targets).

Morgan Stanley said that its Underweight stock rating means the stock's total return is expected to be below the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months.