Peter Zaffino has been named chief executive officer of Guy Carpenter reinsurance brokerage, succeeding David Spiller in this position, Marsh & McLennan Companies Inc. announced today.
MMC also appointed Britt Newhouse as chairman of Guy Carpenter. Both appointments are effective immediately.
The company said both Mr. Zaffino and Mr. Newhouse will report directly to MMC's new president and CEO, Brian Duperreault, who took his post on Jan. 30.
Bank of America Equity Research analyst Alain Karaoglan said in an e-mail that these changes "do not signal issues at Guy Carpenter. We do not believe these new leadership changes are any indication of internal problems or issues at Guy Carpenter. Rather, they were likely made to better align the interests and vision of MMC CEO Duperreault to that of the leadership team of Guy Carpenter."
According to the e-mail, "Our target price of $28, based on our valuation methodologies, implies a multiple of 17.5x our projected 2008 EPS [earnings per share] estimate, suggesting an expected ROE [return on equity] of 10 percent in 2008."
Mr. Duperreault said, "In Peter and Britt, we have a wealth of reinsurance industry knowledge and experience. They have contributed enormously to Guy Carpenter's success over the years, and have demonstrated their leadership abilities most recently by guiding the firm through today's soft market conditions. I look forward to working closely with them both in their new roles."
Mr. Zaffino joined Guy Carpenter in 2001. Prior to his current role as executive vice president and head of U.S. treaty operations, he was responsible for treaty operations for Guy Carpenter's U.S. Eastern Region, and prior to that led the global Specialty Practices.
Before joining Guy Carpenter, he served in an executive role with GE Capital Services company, specializing in casualty treaty reinsurance, and oversaw all treaty production and underwriting.
Mr. Newhouse joined Guy Carpenter in 1979, in the firm's New York Casualty Treaty Department. He is currently president of the Americas broking operations and a member of the firm's Executive Committee. Previously, he headed the U.S. Eastern Region and served as the New York branch manager.
Prior to joining Guy Carpenter, Mr. Newhouse began his career as an underwriter with AIG.
Guy Carpenter & Company, LLC, is a risk and reinsurance specialist.
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