Swiss Re Replaces CEO Aigrain With Deputy CEO Lippe

Eight days after Swiss Re announced it sustained an $860 million loss last year, and needed a Berkshire Hathaway $2.6 billion capital infusion, the company said it has replaced its chief executive officer, Jacques Aigrain.

The Zurich, Switzerland-based reinsurance giant said Deputy Chief Executive Officer and Chief Operating Officer Stefan Lippe will take over as CEO.

Mr. Aigrain, who joined Swiss Re in 2001, was appointed CEO on Jan. 1, 2006. The company said he will support the transition to Mr. Lippe through Wednesday, along with a statement from Mr. Aigrain.

"Having taken measures to reinforce the Group's capital strength and further de-risk its investment portfolio, the interests of Swiss Re are now best served by a change in executive leadership," the outgoing CEO said.

Mr. Aigrain said Mr. Lippe had been the architect of Swiss Re's "focus on disciplined, quality underwriting in the reinsurance business. I am proud to have had him by my side as a trusted colleague and wish him and the team the greatest of success for Swiss Re to shine anew."

Mr. Lippe, 53, a German citizen, has been with the Swiss Re Group for 25 years. He was appointed a member of Swiss Re's Executive Board in 1995, and served for 10 years as CEO of the Bavarian Re group.

In 2001, he was appointed as head of the Property and Casualty business worldwide, as well as a member of the Executive Committee. Beginning in 2005, he led Swiss Re's property-casualty and life and health insurance underwriting activities, and in September 2008 assumed the role of chief operating officer and was appointed deputy chief executive officer.

Swiss Re Chairman Peter Forstmoser, said: "We are very pleased that Stefan Lippe assumes the CEO position. His proven track record in reinsurance will support our efforts to focus on our core business, while at the same time ensuring operational continuity. Stefan Lippe brings hands-on expertise, a clear strategic focus and a reputation for delivery of bottom-line results."

He noted that under Mr. Agrain's leadership, the company had successfully completed several major acquisitions. including the Insurance Solutions operations from General Electric. Mr. Agrain, he said, had reorganized the Group to be fully client-oriented and to better position the company to leverage its global scale. The Board is tremendously grateful for his significant contributions and personal commitment to Swiss Re.''

"I am clear about the challenges that Swiss Re needs to address," said Mr. Lippe. "Our core reinsurance portfolio is sound. We are focused on meeting our clients' needs, creating shareholder value and providing quality career opportunities in a stimulating business environment. I look forward to working closely with the Board, the executive team and the employees of Swiss Re in my new capacity."

Last Thursday, when it announced that billionaire investor Warren Buffett's Berkshire Hathaway Inc. was providing capital, the firm said it would consider raising an additional two billion Swiss francs ($1.7 billion at current exchange rates), subject to market conditions, for a total of five billion Swiss francs ($4.3 billion), counting Mr. Buffet's capital.

The firm said it would trim its dividend and would take other steps to improve its performance, but two rating firms--Standard & Poor's and A.M. Best Company--put it on watch with negative implications, while Moody's reduced its ratings a notch to "Aa3" from "Aa2."

(Daniel Hays can be reached at dhays@nuco.com or 201 526-1245).