Allianz Insurance Company Launches Directors & Officers Liability Insurance; Major U.S. Public Companies Now Can Tap Top-Rated Global Carrier in Constricting D&O Market.Business Editors CHICAGO--(BUSINESS WIRE)--Jan. 6, 2003 Allianz Insurance Company has launched a new business unit to provide directors and officers liability insurance Directors and Officers Liability Insurance is insurance payable to the directors and officers of a company to cover damages or defence costs in the event they are sued for wrongful acts while they were with that company. even as many major insurers are severely pulling back on D&O coverage. Allianz Insurance Company's A++ credit rating, financial strength, global capabilities and prominent brand make it a strong D&O insurance choice from the outset. With its launch, Allianz is forging a new business model in the D&O market. It has created the most seasoned startup ever in the D&O market, with its new unit led by industry veterans with more than 100 years of combined experience. Allianz has consolidated operations and underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. authority in its Chicago and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of offices to ensure responsiveness and speed decision-making. And in a market that has historically relied largely on instinct instinct, term used generally to indicate an innate tendency to action, or pattern of behavior, elicited by specific stimuli and fulfilling vital needs of an organism. to judge risk, it is pioneering the development and use of analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. tools for evaluating D&O risk. "We see a tremendous opportunity to provide D&O coverage to larger public companies using an innovative yet disciplined approach. Unlike typical D&O underwriting operations, brokers and clients will work directly with our very senior D&O leaders who are able to deliver quick, yet thorough decision-making," says Donald Bailey
Given its commitment to the U.S. D&O market for public companies and the corresponding demand, Allianz is ramping up its capabilities quickly. In fact, it expects to be one of the top three players in its target market, with a share of 25 percent or more, within three to five years. "The entry of Allianz into the D&O market comes at a most opportune op·por·tune adj. 1. Suited or right for a particular purpose: an opportune place to make camp. 2. Occurring at a fitting or advantageous time: an opportune arrival. time," says David Nikolai, managing director of Marsh USA's FINPRO division. "Clearly, personal liability exposure for directors of public companies is greater than ever in light of corporate scandals A corporate scandal is a scandal involving allegations of unethical behavior by people acting within or on behalf of a corporation. A corporate scandal sometimes involves accounting fraud of some sort. and recently enacted legislation. In addition, the D&O market is in turmoil as insurers' capacity is contracting as a result of serious operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. over the past few years. Allianz's financial strength and global reach make its D&O product immensely attractive to our clients." In another break from industry practice, Allianz has recruited four vice-presidents with deep industry experience to lead its D&O underwriting and work closely with brokers and clients instead of appointing a single senior executive. The underwriting leaders are: -- Michele Centeno, who was regional vice-president and managing director of the St. Paul Insurance Company where she managed a staff of 60 in the New England states with premium volume of $227 million. -- Brian Gauen, formerly vice-president and Mid-Atlantic Zone Executive Protection Practice Leader for Chubb & Son Inc., where he was responsible for 22 underwriting employees in seven branch offices with premium volume exceeding $90 million. -- Brian Houghlin, previously a director of Aon's Financial Services Group where he managed the Chicago branch with 14 brokers and premium volume exceeding $250 million. -- David Scott, a former vice-president of CNA Insurance Companies' D&O liability operation in New York, Chicago and London. Allianz also is not waiting to build a strong claims-processing operation. Not only has it retained leading D&O law firm Duane Morris Duane Morris LLP is a law firm headquartered in Philadelphia, Pennsylvania. The firm employs more than 600 lawyers in 18 offices in the United States, as well as in offices in London, Singapore and Vietnam. , Allianz has recruited a seasoned D&O claims executive to head its operation. Allianz's new vice-president of professional liability lines, Donald Glazier, was previously a senior vice-president at Monitor Liability Lines Inc., where he directed a staff of 12 in connection with a $130 million nationwide book of professional liability business, including $65 million of D&O. Allianz Insurance Company provides commercial insurance to large public and private U.S. companies. It is part of Allianz Global Risks, the international commercial insurance carrier of the Allianz Group. The Allianz Group, one of the leading global financial service providers, offers a broad range of financial and insurance products to its 60 million clients in over 70 countries and has assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. of approximately US $1 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. . The Allianz Group has an A.M. Best rating of A++ (XV) and a Standard & Poor's rating of AA. |
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