John D. Finnegan, executive vice president of General Motors Corp. and chairman and president of General Motors Acceptance Corp. (GMAC) has been elected president, CEO and a director of The Chubb Corp., effective Dec. 1. Finnegan will succeed Dean R. O’Hare, who will retire as chairman and CEO on Nov. 30 after 39 years with Chubb, including 14 years as CEO.
In addition, Chubb’s lead director, Joel J. Cohen, has been elected non-executive chairman of the board. Executive Vice President and Chief Operations Officer Thomas F. Motamed has been promoted to vice chairman and chief operating officer. President John Degnan and Executive Vice President Michael O’Reilly have been promoted to vice chairmen and will retain their current responsibilities.
The three new vice chairmen will report to Finnegan. All of these changes will be effective Dec. 1.
Born in Jersey City, N.J., Finnegan, 53, has a B.A. degree in political science from Princeton University, a law degree from Fordham University and an M.B.A. from Rutgers University. He joined the GMAC tax department in 1976. He held various positions in GM’s treasury department, including international banking, foreign exchange and benefits funding.
In 1985 he returned to GMAC as director of strategic planning. In 1986 he became chief financial officer of GMAC Mortgage Corp. Returning to GM in 1987, he served as assistant treasurer of worldwide benefits and compensation and in 1989 became assistant treasurer of international financing operations. He became executive vice president and chief financial officer of GMAC in 1992, vice president and treasurer of GM in 1995, and president of GMAC in 1997. He assumed his current titles in 1999.
Finnegan resides in Wyckoff, N.J., with his wife, Kathleen, and two children.
GMAC is one of the world’s largest financial services companies, with 2001 revenue of $15 billion. GM’s revenues were $177 billion.
GMAC offers several insurance products, including extended warranty protection, dealer inventory insurance and personal automobile insurance.
"John Finnegan is one of the world’s premier financial services executives," Cohen said. "Chubb already has excellent underwriting and claims talent. John brings world-class managerial and financial talent as well as outstanding qualities of leadership, intellect, sophistication and vision. We are confident he will lead Chubb to new levels of achievement for shareholders and customers."
The board decided to separate the chairman and CEO functions in accordance with best practices in corporate governance. "As Chubb’s senior outside director," O'Hare said, "Joel Cohen is thoroughly familiar with the company and its operations, and he will play a key role in orienting John with the company and the board."
"I am excited to be joining a company of Chubb’s quality and reputation," Finnegan said. "I have always regarded Chubb as the class act in the industry. It has a well deserved reputation for maintaining financial integrity, settling claims with fairness and speed, providing superior service and products to customers and producers, and maintaining a progressive workplace for employees. With the help of my new colleagues at Chubb, I intend to get up to speed quickly on the company and the industry so that we can tackle the issues that face the company head-on."
"I couldn’t be more pleased with my successor," said O'Hare, who served on the search committee. "His values, style and personality are an excellent fit with Chubb, and he is an outstanding financial services executive, people manager and strategic thinker. I am confident he is the right person to lead Chubb into the future."
Finnegan will also serve as chairman of the board and CEO of Federal Insurance Company, the largest of the Chubb group of insurance companies, and as chairman and CEO of Chubb & Son, a division of Federal and the company’s principal operating arm.
Motamed will serve as president and chief operating officer of Federal and of Chubb & Son.
Founded in 1882, Chubb is one of the world’s premier property and casualty insurers, with 12,600 employees serving customer in 134 offices in North America, South America, Europe and Asia. Revenues in 2001 were $7.8 billion.
