Nationwide Mutual Insurance Company, in a surprise announcement yesterday, said that its long-serving chief executive officer, Jerry Jurgensen, has been replaced by President and Chief Operating Officer Steve Rasmussen.
The Columbus, Ohio-based personal lines giant said Mr. Jurgensen, who has been with the company since 2000, reached a mutual agreement with Nationwide's board of directors that he should leave.
The action comes less than a month after A.M. Best Company revised the Nationwide Group's outlook to "negative" from "stable."
After heavy storm losses, Best said the insurer would be "challenged to rebuild surplus based upon historical underwriting performance and reduced investment income, given the current volatility in the financial markets."
The rating agency also cited as a reason for the revised outlook the "precipitous decline in risk-adjusted capitalization associated with the early 2009 privatization of Nationwide Financial Services Inc. (NFS)."
NFS reported a third quarter 2008 net loss of $346 million.
"We want to thank Jerry for his contributions over the last eight years," said one board member, Keith Eckel. "Under his leadership, the company has enhanced its financial discipline and has developed what we believe is a winning strategy for the future."
His statement added that Mr. Jurgensen was leaving the company in a strong financial position. "We wish him well in his future endeavors," he said.
In response, Mr. Jurgensen said in a statement that "Nationwide is a fantastic company, and I have tremendous affection for the entire Nationwide family. We believe we have avoided the worst of the problems that have bedeviled the financial sector, and I look forward to pursuing new challenges that will benefit from my leadership and experience."
Mr. Eckel noted that new CEO had served as Nationwide Mutual's senior operating executive for more than five years. Mr. Rasmussen "has an excellent track record, demonstrating the operational and managerial skill to ensure Nationwide's continued success," he added.
Mr. Rasmussen has been with Nationwide since 1998, and has been president and COO of Nationwide Mutual and Nationwide Mutual Fire Insurance Company since September 2003.
The new appointee has also served as chairman, COO and director of Nationwide subsidiary Allied Group Inc., as well as a director of several other companies within Nationwide.
"I welcome the opportunity to lead Nationwide Mutual as its CEO at this important time for the company," said Mr. Rasmussen said.
"While it's clear that our entire industry faces challenges, Nationwide's capital position is strong and we have the right strategy in place to grow market share," he added. "I look forward to working with our entire team, including our business partners and associates, as we deliver on our promise to provide superior products and an outstanding customer experience for our policyholders."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.