WARREN, N.J., Oct. 24, 2013 /PRNewswire/ -- The Chubb Corporation's (NYSE: CB) Board of Directors today announced that John D. Finnegan, Chubb's Chairman, President and Chief Executive Officer, will remain in his current roles until the end of 2016. In reaching this decision, the Board exercised its discretion to depart from its policy that senior executives should retire at age 65, which would have required Mr. Finnegan to retire at the end of 2014.
"The Board's decision was based on its high level of satisfaction with Chubb's overall performance since John Finnegan became CEO in December 2002," said James M. Zimmerman, Chubb's Lead Director. "Under John's leadership, the Company has achieved consistently strong operating earnings notwithstanding unusually high catastrophe losses and, in more recent years, unprecedented low interest rates.
"In addition to Chubb's strong financial performance with John at Chubb's helm over the last ten-plus years," Mr. Zimmerman noted, "Chubb also has enhanced its position as an employer of choice, has been recognized by national organizations for its sustained commitment to diversity, and has maintained its reputation for excellence in underwriting and claims service." Mr. Zimmerman added, "Extending this track record is the first priority for the Board and we believe that it is in the best interests of our shareholders and employees that John continue as Chubb's CEO."
The average annual total return to Chubb's shareholders (which includes market price appreciation and reinvested dividends) has increased significantly while Mr. Finnegan has served as Chubb's Chief Executive Officer. During the period from January 1, 2003 through September 30, 2013, Chubb's compound average annual total return totaled 14.8%, compared to 8.4% for the S&P 500 and 7.0% for the S&P Property & Casualty Insurance Index.
Over the next three years that Mr. Finnegan will remain as CEO, Chubb's Board of Directors will continue its review of CEO succession planning as part of its established succession management procedures. In connection with this review, Chubb announced a realignment of responsibilities among the top members of Chubb's strong management team. The realignment is designed to broaden the experience of those executives and to further enhance their ability to contribute to the leadership of the Company in the future.
The realignment, which will be effective January 1, 2014, is as follows:
- Paul J. Krump, 53, currently President of Commercial and Specialty Lines, will become President of Personal Lines and Claims and will retain responsibility for the Accident & Health business.
- Dino E. Robusto, 55, currently President of Personal Lines and Claims, will become President of Commercial and Specialty Lines and will retain responsibility for Information Technology.
- Richard G. Spiro, 49, will remain Chief Financial Officer and will assume responsibility for Corporate Development.
Each of these individuals will remain an Executive Vice President of The Chubb Corporation and will continue to report to Mr. Finnegan.
For further information contact:
Glenn A. Montgomery
Mark E. Greenberg
SOURCE Chubb Corporation