American International Group, Inc. 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. Martinez had previously served as the president and chief executive officer of United Guaranty Corp., AIG’s mortgage insurance unit.
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. 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 Martinez as chief executive officer and president of United Guaranty. Garland most recently was United Guaranty’s chief operating officer. A search is underway to find Garland’s successor.
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, 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.
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