|CHARTIS, AIG'S GLOBAL PROPERTY-CASUALTY BUSINESS, PLACES CLAIMS AND OPERATIONS & SYSTEMS UNDER SINGLE MANAGEMENT TEAM|
Intended to Help Improve Customer Service and Ultimately Lower Loss Ratios
Kim Garland Appointed Chief Executive Officer and President of United Guaranty
Charles Schader Becomes Senior Vice President, Applied Research
NEW YORK, Feb 21, 2012 -- American International Group, Inc. (NYSE: AIG) today announced that Chartis, its global property casualty business, has placed its Claims and Operations and Systems (O&S) organizations under a single management team to improve customer service, capitalize on the shared strategic initiatives of the two teams, and to drive improvement in Chartis' loss ratio, a critical component of its five year plans.
"Last May, we provided investors with a blueprint to achieve a double-digit return on equity and a combined ratio for Chartis in the low 90's by year-end 2015," said Chartis Chief Executive Officer Peter D. Hancock. "The plan requires successful execution of initiatives in four key strategic areas: business mix shift, loss ratio improvement, expense discipline and risk selection. This unified management approach will help us achieve our goals."
Eric Martinez, appointed Executive Vice President of Global Claims, Operations and Systems, will lead the new unit, reporting to Mr. Hancock. Mr. Martinez had previously served as the President and Chief Executive Officer of United Guaranty Corp. ("United Guaranty"), AIG's mortgage insurance unit.
Mr. Martinez succeeds Charles Schader, who assumes the newly created position of Senior Vice President, Applied Research, reporting to Charles Shamieh, AIG's Chief Actuarial Officer. Mr. Schader will work closely with the AIG and Chartis Actuarial, Science and Risk Officers in the practical application of quantitative research to enhance reserving methodologies, claims outcomes and underwriting risk selection. Kim Garland will succeed Mr. Martinez as Chief Executive Officer and President of United Guaranty. Mr. Garland most recently was United Guaranty's Chief Operating Officer. A search is underway to find Mr. Garland's successor.
"I expect these three executives to be instrumental in allowing AIG to deliver on its 2015 goals," said AIG Chief Executive Officer and President Robert H. Benmosche. "Eric Martinez has done a superb job restoring United Guaranty to a position of market leadership and we are fortunate to be able to bring his strong management skills to Chartis. Kim Garland was a key part of United Guaranty's success while working with Eric as the chief operating officer and I am confident he will continue to build on Eric's record at United Guaranty. I am pleased that we will continue to benefit from Chuck Schader's expertise at AIG."
Mr. Schader has served as AIG's and Chartis' Chief Claims Officer for the past eleven years and brings decades of practical insurance business experience to his new role.
Before joining AIG, Mr. Garland served as President of Safeco's Open Seas Solutions group, the company's innovation team, and prior to that had responsibility for Safeco's Personal Auto business.
Chartis is a world leading property-casualty and general insurance organization serving more than 70 million clients around the world. With one of the industry's most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.
Chartis is the marketing name for the worldwide property-casualty and general insurance operations of Chartis Inc. For additional information, please visit our website at http://www.chartisinsurance.com. All products are written by insurance company subsidiaries or affiliates of Chartis Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain coverage may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.
About United Guaranty
United Guaranty Corporation and its subsidiaries provide innovative, quality risk solutions that help mortgage lenders remain competitive while generating a profitable and responsible book of business for their stakeholders. Products include first-lien private mortgage insurance--most notably Performance Premium, an industry-leading risk-based pricing option--and compliance review services. Among United Guaranty's suite of loan analysis and risk management tools are indices that measure loan risk and geographic quality. United Guaranty was established in Greensboro, North Carolina, in 1963 and has been a company of American International Group, Inc. (AIG) since 1981. The company's international locations include operations in Hong Kong, Seoul, Tokyo, Sydney, London, Madrid, Milan, Budapest, and Mexico City.
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
SOURCE: American International Group, Inc.