DOW JONES NEWSWIRES
Allstate Corp. (ALL) named American International Group Inc.
(AIG) Vice Chairman Matthew Winter as chief executive of Allstate
Financial, its life-insurance and annuities unit.
The insurer has been restructuring the business, cutting 1,000
jobs and "repositioning" products, to reach $90 million in annual
savings by 2011. In May, Allstate said it would "reinvent" its
fixed-annuity offering to reduce commissions.
Winter, 52 years old, replaces George Ruebenson, who became
interim chief executive in December in addition to president of
Allstate Protection, the company's property-and-casualty business
unit. Allstate Financial's latest CEO was James E. Hohmann, who
joined Allstate months after being passed over for the top job at
insurer Conseco Inc. (CNO), where he had been chief operating
officer.
At the time of Hohmann's departure from Allstate, Chairman and
Chief Executive Thomas J. Wilson said, "We must be more focused on
creating a sustainable business model that reflects a new economic
environment and reality for our customers."
Insurers annuities business became a key focus point among
investors as the stock market plunged a year ago. Variable
annuities carry minimum returns even if the underlying investments
fall. With the stock market's woes, concerns increased about
whether insurers might need to raise capital to cover any potential
shortfall.
Winter, whose new job is effective Oct. 26, was named AIG vice
chairman of administration in August after serving as chief
executive of that company's American General Life Cos. for about
three years. Winter previously worked at Massachusetts Mutual Life
Insurance Co. after 12 years on active duty with the Army and
practicing law for several years.
AIG, which is 80%-owned by the U.S. government, has been
actively working to restructure its operations by selling various
assets and businesses.
Allstate's shares recently traded at $31.27, up 0.5%, amid a
broad market rally. The stock has lost one-quarter of its value the
past year.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com
