Continuing an effort to achieve a double-digit return on equity and a combined ratio in the low 90s by the end of 2015, AIG’s Chartis global property/casualty business has consolidated its Claims and Operations and Systems organizations under a single management team. The new structure is also intended to improve customer service and capitalize on the shared strategic initiatives of the two teams, according to the New York-based company.
The growth plan that was announced in May 2011 "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, according to Chartis' CEO Peter D. Hancock, in a statement.
The new unit will be led by Eric Martinez, who Chartis has named EVP of Global Claims, Operations and Systems; he will report to CEO Hancock. Martinez previously had served as the president and CEO of United Guaranty Corp., AIG's mortgage insurance unit. He succeeds Charles Schader, who assumes the newly created position of SVP, Applied Research, reporting to Charles Shamieh, AIG's Chief Actuarial Officer.
Schader will work 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. Schader has served as AIG's and Chartis' Chief Claims Officer for the past 11 years.
[To read a Q&A with Chartis' new Chief Science officer Mulri Buluswar, click here.]
Kim Garland will succeed Martinez as CEO and president of United Guaranty. He most recently was United Guaranty’s Chief Operating Officer. 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.
"I expect these three executives to be instrumental in allowing AIG to deliver on its 2015 goals," said AIG CEO and President Robert H. Benmosche in a press release. "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."