Insurer Names New Head of ACE USA after CEO announces resignation

Excerpts From The National Underwriter News
January 6, 2005

ACE Ltd. announced a management shakeup at ACE USA, the US-based Property & Casualty retail brokerage division of the ACE Group of Companies. The company said ACE USA CEO Susan Rivera has resigned from her post.

Ms. Rivera's departure comes as the insurer continues its internal investigation into possible misconduct by some employees. ACE had already said in November that it dismissed two workers and suspended three others for improper business practices.

The company’s internal investigation started after New York Attorney General Eliot Spitzer filed a civil lawsuit against New York-based Marsh & McLennan Companies for alleged illegal business activities, including bid-rigging. ACE Ltd. was one of the insurers referred to in the lawsuit.

There is speculation that Ms. Rivera's sudden resignation is related to the company's ongoing probe. Morgan Stanley's Mr. Wilt said Ms. Rivera had been cited in some articles detailing circumstances related to the alleged bid-rigging process.

ACE Ltd., however, didn't offer any reason for the departure of Ms. Rivera, who has been working at the company for the past three years. When asked during the analyst call whether her resignation had anything to do with the Spitzer probe, Mr. Greenberg said: "The announcements we put out speak for themselves. I am not going to comment any further about that."

Ms. Rivera is replaced by Brian Dowd, who previously served as president and CEO of ACE Westchester Specialty.

Copyright © 2005 The National Underwriter Company. All rights reserved.
Copyright may be held as excerpted in part by independent author, Michael Ha.

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