Allstate Picks AIG Executive Winter To Lead Life-Insurance Unit

   DOW JONES NEWSWIRES 
 

Allstate Corp. (ALL) named American International Group Inc. (AIG) Vice Chairman Matthew Winter as chief executive of Allstate Financial, its life-insurance and annuities unit.

The insurer has been restructuring the business, cutting 1,000 jobs and "repositioning" products, to reach $90 million in annual savings by 2011. In May, Allstate said it would "reinvent" its fixed-annuity offering to reduce commissions.

Winter, 52 years old, replaces George Ruebenson, who became interim chief executive in December in addition to president of Allstate Protection, the company's property-and-casualty business unit. Allstate Financial's latest CEO was James E. Hohmann, who joined Allstate months after being passed over for the top job at insurer Conseco Inc. (CNO), where he had been chief operating officer.

At the time of Hohmann's departure from Allstate, Chairman and Chief Executive Thomas J. Wilson said, "We must be more focused on creating a sustainable business model that reflects a new economic environment and reality for our customers."

Insurers annuities business became a key focus point among investors as the stock market plunged a year ago. Variable annuities carry minimum returns even if the underlying investments fall. With the stock market's woes, concerns increased about whether insurers might need to raise capital to cover any potential shortfall.

Winter, whose new job is effective Oct. 26, was named AIG vice chairman of administration in August after serving as chief executive of that company's American General Life Cos. for about three years. Winter previously worked at Massachusetts Mutual Life Insurance Co. after 12 years on active duty with the Army and practicing law for several years.

AIG, which is 80%-owned by the U.S. government, has been actively working to restructure its operations by selling various assets and businesses.

Allstate's shares recently traded at $31.27, up 0.5%, amid a broad market rally. The stock has lost one-quarter of its value the past year.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; [e-mail]