Jeremy Johnson, a former insurance broker, has been named head of American International Group's surplus lines business.
Industry officials said the prompt decision confirms their view that AIG is moving aggressively to retain existing personnel and otherwise protect its highly profitable and market-leading Surplus Lines business from an anticipated aggressive move by Warren Buffet's Berkshire Hathaway into the line.
Johnson most recently served as Specialty Product Line Executive AIG Property Casualty in the U.S. and Canada. He was been with AIG since 2000. Prior to AIG Johnson was a D&O liability broker for Sedgwick Inc. and Marsh Inc.
According to one broker source, both AIG and Berkshire “are 'lawyering up' as AIG anticipates Berkshire Hathaway may move to hire away even more AIG surplus lines executives” in a move to grab market share
Several other brokers, all of whom declined to be named, agreed.
Additionally, several securities analysts in comments about the decision of four top AIG executives to defect to Berkshire Hathaway late last week, also anticipated a strong effort by AIG to protect its Surplus Lines business from inroads by Berkshire Hathaway.
“Lexington is the leading global E&S platform, with outstanding talent, experience, leadership and demonstrated ability to develop and attract the same. We don't expect that to change,” says Matthew Gallagher, spokesman for AIG.
Specifically, Johnson was named president and CEO of Boston-based Lexington Insurance Co., AIG's surplus unit.
The appointment is immediate and was necessitated by the defection of David Bresnahan, former president of Lexington. Bresnahan left AIG late last week with Peter Eastwood, former head of AIG's U.S. P&C operations; Sanjay Godhwani, former president for Latin America and the Caribbean for AIG's P&C operations; and David Fields, another top P&C executive.
All landed at Berkshire.
According to analysts at Bank of America Merrill Lynch, Lexington, AIG's main surplus lines vehicle, contributes 12.4% of AIG's total P&C premiums and 18% of AIG's statutory US P&C direct premium written.
In his most recent role with AIG, Johnson oversaw business lines such as aerospace, marine, environmental, SME, trade credit, political risk, and surety.
Johnson has held high-level underwriting, sales, and managerial roles, including president of Cat Excess Liability, a division of Lexington, and regional vice president for Commercial Property Casualty, Midatlantic Region.
He also spent several years in various roles in the Boston office of AIG Property Casualty, AIG officials say.
“Jeremy is a veteran insurance and AIG professional, with demonstrated and extensive experience helping customers and brokers insure large, complex risks,” says Schimek in a statement.
“He is well suited and prepared to head Lexington and enhance its position as the leading global E&S platform,” Schimek continues.
Schimek was recalled from London to become president and CEO of AIG Property Casualty's Americas region, succeeding Eastwood.
All of AIG's appointments to fill the positions left vacant following the exodus of Eastwood, Bresnahan, Godhwani and Fields were made in-house.
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