CIGNA Corp., hoping to improve the financial results of its property-casualty operations, Wednesday named Gerald A. Isom as president of the CIGNA Property and Casualty Cos., effective March 15.
Isom, 54, was president and chief executive of California-based Transamerica Insurance Group, but was squeezed out by the parent corporation’s plans to divest the operation and place it under new management.
Isom replaces Caleb L. Fowler, 50, who resigned last month from CIGNA. The company said the move was “designed as a change in leadership to improve performance.” Analysts believe Fowler was forced out because of disappointing financial results in property-casualty lines.
Analysts reacted generally favorably to Isom’s appointment at CIGNA, though with some reservation.
“Gerry has been able to bring a new culture to Transamerica’s property-casualty operations such that its new business has reported reasonable, if not better, results,” said Harry Fong, an analyst and director of research at Conning & Co. in Hartford.
“Unfortunately, Transamerica’s older business continued to develop poorly, and [Isom’s] report card at turning around the historical book of business is still not in,” Fong noted.
CIGNA’s problems relate to a large amount of older business as well, “and whether Mr. Isom can turn that book around remains an issue,” Fong said.
However, Wilson H. Taylor, CIGNA’s chief executive officer, said the company is committed to making property-casualty operations profitable once again.
“With 30 years of experience in the property-casualty business and his recent success at Transamerica, Gerry is clearly an executive with the knowledge and skills to help us achieve that goal,” Taylor said.
Isom joined Transamerica as president and chief operating officer in 1984, and later moved up to chief executive officer. He
also served since 1991 as a group vice president of the parent corporation, Transamerica Corp.
Before Transamerica, Isom spent 28 years with Fireman’s Fund Insurance Co., where he rose to a senior executive vice president for all lines of business, and a director of the parent company.
Isom has also served as chairman of the Insurance Information Institute, the public relations arm of the industry; and as vice chairman of the Insurance Services Office, which develops policy forms and helps develop rates.
Isom is “pretty well regarded in the industry,” said James Ramenda, managing director at Northington Partners in Avon. “It’s the kind of name that means CIGNA is committed to the business.”
Transamerica Corp. announced last November that Isom would be leaving the Transamerica Insurance Group. The corporation had an agreement to divest a majority interest in the group in an initial public offering, and to name Jon W. Rotenstreich as chairman and chief executive of the new company. He is a former president of Torchmark Corp.
The offering is expected to take place early in the second quarter of this year
