Racicot Resigning From AIA

WASHINGTON–Marc Racicot, American Insurance Association president and chief executive officer, is resigning his position as of February 2009, and will be replaced by AIA Chief Operating Officer Leigh Ann Pusey.

The resignation was announced today following a meeting of the trade group's board in Washington, D.C., by AIA Chairman Evan Greenberg, the CEO of Ace Ltd.

Mr. Racicot was not available for comment on his future plans.

Several sources indicated that Mr. Racicot decided to step down in the face of declining revenues due to industry consolidations, as a means of saving the jobs of others at the trade group. The sources made clear that the move was underway before Democratic Sen. Barack Obama was elected president Nov. 4.

Mr. Greenberg's announcement mentioned that during his tenure, Mr. Racicot “has made a number of important management and reorganization proposals to the AIA board, which the board has endorsed.”

One of those proposals, Mr. Greenberg said, “calls for a realignment of AIA management and a change of leadership.”

Reacting to the decision, Ken Crerar, president of the Council of Insurance Agents and Brokers, said, “Of course, 2009 is a year of change in Washington on a national scale, and now in our own industry with this news.”

He added, “We are grateful to Governor Racicot for his years of service as AIA president and congratulate Leigh Ann in her new role at the helm. Ms. Pusey also currently serves AIA as senior vice-president for government affairs.

“She has proven herself a capable and effective insurance advocate and colleague of the Council's and we look forward to working with her in this new leadership role,” he added.

Sources said the trade group is adjusting its budget in the face of belt-tightening by current members and the loss of two members this year–one being Selective Insurance, and the other being Safeco, which was acquired by Liberty Mutual.

Mr. Racicot joined the AIA in August 2005 after a stint as a lobbyist with Bracewell & Guiliani, a Houston and Washington, D.C. law firm.

He served two terms as governor of Montana in the 1990s, and later as chairman of the Republican National Committee, and from July 2003 as chairman of the Bush-Cheney '04 re-election campaign.

Ms. Pusey in her current role is responsible for the management and operation of the association's government affairs department, directing a staff of professional lobbyists who represent AIA before Congress and in the states on all matters of interest to the property-casualty insurance industry, and she assists in the overall management of the association.

She joined AIA in December 1996 and was appointed to her current position in 2006. Previously, she served as senior vice president for federal affairs and before that as senior vice president for public affairs.

In the statement disclosing the change, Mr. Greenberg lauded Mr. Racicot for “working diligently and effectively representing the property-casualty insurance industry over the last three-and-a-half years, continuing AIA's role in advocating for a strong and healthy property-casualty industry.”

He said in Ms. Pusey's new role as president and chief executive the association will be “well positioned to continue its mission as the leading public policy advocate for the property-casualty insurance industry.”

David A. Sampson, president and CEO of the rival Property Casualty Insurers Association of America (PCI), said in a statement, “I would like to express my great personal respect and admiration for Governor Racicot, and these sentiments long predate my tenure at PCI.

“He has exemplified excellence in every role he has taken on. He has ably guided AIA for more than three years and has been a strong leader for our industry. He has also been an outstanding public servant, as the voters of Montana made clear…I will miss having him as a colleague, personally and professionally, and I wish him all the best that life has to offer in the future.”

(Correction: Nov. 19–In the original version of this story, NU mistakenly reported that Selective Insurance–cited as one of two carriers that had left AIA–had divested its operating units, which is in fact not the case. A company representative reiterated that “Selective remains a holding company for seven insurance companies rated “A-plus” (Superior) by A.M. Best.”)