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Issue November 23, 2009 |
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Aon Risk Services President Ted T. Devine is leaving to launch a charitable organization. Mr. Devine, who joined Aon Corp. in 2005 as chief operating officer of Aon Risk Services Americas and head of global strategy, was named president of Aon Risk Services, Aon's large-account operation, in 2008. He will not be replaced, Aon said in a statement, noting that Chairman and Chief Executive Officer Steve McGill and Chief Operating Officer Mike O'Connor will continue to lead the operation. Mr. Devine is launching 1World Sports, a nonprofit entity dedicated to encouraging children worldwide to participate in sports.
Ohio Attorney General Richard Cordray has sued three national rating agencies, alleging they offered inflated and misleading ratings of mortgage-backed securities and damaged five public employee pension funds that invested in the securities. The suit alleges that Standard & Poor's Corp., Moody's Investors Service and Fitch Ratings made misleading evaluations of mortgage-backed securities, in part, because of the fees they received from the issuers of the securities. Mr. Cordray filed the suit on behalf of the Ohio Public Employees Retirement System, the State Teachers Retirement System of Ohio, the Ohio Police & Fire Pension Fund, the School Employees Retirement System of Ohio and the Ohio Public Employees Deferred Compensation Program. Preliminary estimates indicate the funds lost more than $457 million, Mr. Cordray said.
Ironshore Specialty Co. is entering the aviation insurance market through an arrangement with Starr Aviation Agency Inc., which will underwrite aviation risks for the unit of Bermuda-based Ironshore Inc. Ironshore will offer coverage to airlines, aviation manufacturers, airports, aviation refuelers, fixed base operations, corporate aircraft and other general aviation risks worldwide. Gerald E. Frick, who was global leader of the aviation practice at broker Marsh Inc. before his recent retirement, will lead the unit.
The Labor Department has given Microsoft Corp. final authorization to fund benefit risks through the Vermont branch of its Bermuda-based captive insurance company. Microsoft will use the Vermont branch of Orcas Ltd., its 11-year-old property and liability captive, to reinsure long-term disability policies covering about 55,000 U.S. employees. The coverage will be written by Prudential Insurance Co. of America, according to Microsoft's application filed by the Somerset, N.J., office of Aon Consulting.
David A. Olsen, former chairman and chief executive officer of Johnson & Higgins and later director of Marsh & McLennan Cos. Inc., has died after a brief illness. He was 71. Mr. Olsen joined MMC in 1997 after its acquisition of J&H, where he had served as chairman and CEO since 1990 and 1991, respectively. He served as MMC vice chairman from June through December 1997 and was elected to MMC's board the same year. Mr. Olsen joined J&H in 1966 and helped it become the world's sixth-largest broker before it merged with MMC in a $1.8 billion cash-and-stock transaction.
Willis Group Holdings Ltd. has signed a definitive agreement with French private equity firm Astorg Partners to sell part of Willis' stake in Gras Savoye & Cie for $160 million, though the brokerage will retain an option to buy outright its French partner. Willis announced in June that it was seeking to sell some of its 48% stake—valued at $343 million—in Paris-based Gras Savoye, which it has steadily increased since its original investment in 1997. Under a put agreement, however, Willis could have been obligated to buy the remaining shares of the brokerage between now and 2011, if Gras Savoye's shareholders had “put” their shares to Willis. The agreement would end the put option, leave Willis with a 31.8% stake in the Gras Savoye holding company and give Willis the option to purchase 100% of the capital in Gras Savoye in 2015.
Aetna Inc. said it will shed 625 jobs due to economic conditions. Aetna, which has approximately 35,000 employees, also said it expects to make a similar number of layoffs by the end of the first quarter of 2010, though it does not plan to exit any markets. Aetna said it expects to incur a restructuring charge of about $40 million after taxes.
XL Insurance is starting an inland marine operation in New York led by Frank Oleskiewicz, who will be vp and senior underwriter. Previously, he was director of inland marine for Catlin U.S.
The National Assn. of Insurance Commissioners has chosen Pacific Investment Management Co. as a third-party financial modeler to help state regulators determine the risk-based capital requirements for residential mortgage-backed securities.
For reprints of this story, please contact Lauren Melesio at 212-210-0707 or email lmelesio@crain.com
