Executives: Newcomer Levene to Lead Transformation of Lloyd's

• Susan E Johnson
• July 2002
• 

Lloyd's has reached outside of itself for the first time to hire a chairman, selecting a banking executive to take over the London-based insurance market at the end of 2002.

The Council of Lloyd's chose Lord Peter Levene, vice chairman of Deutsche Bank London, to succeed Sax Riley, who plans to retire after serving as Lloyd's chairman for two years.

Levene will arrive amid an intensive effort by the market to modernize itself and present a better, more comprehensible image to the outside world.

"As part of our reform process, we said we wanted to appoint an individual...with experience of business outside the Lloyd's market," Riley said in a statement. "Lord Levene fits the bill perfectly. He has a breadth of experience and knowledge of international commerce that will be a tremendous asset for Lloyd's."

Levene released a statement of his own: "Lloyd's has already succeeded in making a series of major improvements to its operation since the mid-1990s. The goal of a modern, transparent and profitable business for the 21st century is well within our grasp. This modernization will be my top priority as chairman."

Nicholas Johnson, an equity analyst with Numis Securities in London, said Levene's appointment offered the hope that Lloyd's could improve its image and change outdated perceptions of the market. Levene, he said, has a good reputation "within the square mile"--that is, in London's financial district.

Johnson said Levene appeared to be an "able diplomat" and well connected in both financial and government circles, ideal for helping to build Lloyd's global franchise.

Levene graduated from the University of Manchester and held an array of jobs in defense, transportation, commercial real-estate development, publishing and banking before he joined Deutsche Bank in 1999.

Aetna Names New President

Ronald A. Williams has been appointed president of Aetna Inc.

In addition, he will continue to lead the health business, and Aetna group insurance, large-case pensions and national medical services will also report to him.

Williams joined Aetna in March 2001 from WellPoint Health Networks Inc., where he had been group president of the company's large-group division and president of WellPoint's Blue Cross of California subsidiary.

Williams joined WellPoint's predecessor, Blue Cross of California, in 1987. He became president of Blue Cross of California in 1995, adding the role of group president in 1999. Earlier in his career, Williams held executive positions with Vista Health Corp. and Control Data Corp., and he was president and co-founder of Integrative Systems.

AGF Reorganizes Management As Managing Director Resigns

Paris-based AGF Group said its deputy managing director, Christian de Gournay, has resigned and will not be replaced. Management has been reorganized to spread de Gournay's responsibilities among several managers.

The reorganized structure will be as follows: Jean-Francouis Debrois will be general manager of life and health insurance; Gerard Pfauwadel, general manager, property and liability insurance; Francois Thomazeau, assistant general manager, activities outside France, reinsurance, human resources, general resources and legal affairs; and Laurent Mignon, assistant general manager, asset management and banking activities, property, corporate finance, financial insurance and credit insurance.

De Gournay had been with AGF, a unit of Germany's Allianz AG Holding, for seven years. At a May 14 board meeting, de Gournay "confirmed his wish to leave AGF Group," Chairman Jean-Philippe Thierry said in a statement.

AGF (Assurances Generales de France) Group is a multiline insurer writing domestic nonlife insurance (35% of 1999 premium income), domestic life business (30%), international nonlife insurance (17%), international life insurance (9%), credit insurance (7%) and travel insurance (2%), according to A.M. Best Co. reports. It is the second-largest insurance group in France, with a market share of more than 8%.

Allianz Life of North America Taps Kavitsky as President

Charles Kavitsky has been named president of Allianz Life Insurance Company of North America, effective June 1.

He will retain the position of chief marketing officer. Kavitsky had been with LifeUSA since 1995 and Allianz Life since 1999, when it acquired LifeUSA.

Kavitsky succeeds Margery "Maggie" Hughes, who is retiring. Hughes has been president and chief administrative officer of Allianz Life since 1999 and of LifeUSA since 1990.

In another action, Denise Blizil will assume the title of chief administrative officer upon her formal ratification by the board of management of the company's German parent, Allianz AG Holding. Blizil is senior vice president of company operations and a veteran of the company since the late 1980s.

Kemper Sets Succession Plan For Chief Executive, Chairman

Kemper Insurance Cos. announced that its board has elected William D. Smith chief executive officer effective Jan. 1, 2003, succeeding David B. Mathis, who plans to retire in April 2003.

Mathis will retain the title of chairman until his retirement, at which time Smith will assume the role of chairman. Smith also will continue his responsibilities as Kemper's president and chief operating officer.

In another action, the board voted to promote William A. Hickey and Patricia A. Drago to executive vice presidents.

Hickey will oversee financial operations for both Lumbermens Mutual Casualty Co., the flagship operation of Kemper Insurance Cos., and Kemper Insurance Group Inc., the new stock subsidiary that was created to facilitate an investment from Berkshire Hathaway Inc. Hickey will continue to lead Kemper's capital-development group.

Drago will continue to lead Kemper's client services group, which includes claim, litigation, loss control engineering, and medical and disability management services.

St. Paul Re Names Price Chief Underwriting Officer

St. Paul Cos. has named Michael D. Price chief underwriting officer at St. Paul Re, the company's reinsurance operation.

Price eventually will hold the same post at Platinum Underwriters Holdings Ltd., the Bermuda-based reinsurer to be formed from St. Paul's ongoing reinsurance operations. Price assumed his post June 3.

Price has been chief operating officer for Global Aerospace, an aviation insurer, since last year. Previously, he was chief underwriting officer for Underwriters Reinsurance Co. and for Swiss Re (Americas). From 1996 to 1998, Price was president of London Life & Casualty Reinsurance Corp.

Penn Treaty Taps President-COO

William W. Hunt has been appointed president and chief operating officer of Penn Treaty American Corp.

Hunt was formerly the senior vice president, finance, and he is expected to join the board sometime later this year.

Two other executive positions have been filled. Cameron B. Waite has been appointed executive vice president and chief financial officer and James Heyer has been appointed senior vice president, risk management.

Additionally, Chairman and Chief Executive Officer Irving Levit announced that after more than 40 years as the company's CEO, he will turn over day-to-day operations to his management team at the end of the year. Levit also will relinquish his role as chief executive at that time, but he will continue as chairman of the board.