United America Indemnity, Ltd.’s board of directors has selected Joseph F. Morris as its president.
The company will also consolidate its two U.S. insurance subsidiaries, United National Group and Penn-America Group, under a single United America Insurance Group management structure and has selected William F. Schmidt as its president and CEO.
Morris is currently president and chief executive officer of Penn-America Group and Schmidt is currently president and chief executive officer of United National Group. Both Morris and Schmidt will report directly to the company’s board of directors through its chairman, Saul A. Fox.
The company said the consolidation ultimately will reduce annualized expenses by approximately $4 million when fully completed in 12 months with about one-half of the expense savings realized in 2006. The reorganization will result in an 8 percent reduction of available job positions in the combined companies’ workforces, and that it will incur related restructuring costs of approximately $1.2 million in the first quarter of 2006.
The United America Insurance Group will comprise two business units: Penn-America and United National. All commercial binding authority insurance products now marketed through about 110 general agents for Penn-America and United National will be combined under Penn-America.
All specialty product offerings including professional liability lines of business, brokerage facilities, class-specific programs and umbrella/excess business will continue to operate under the United National business unit. All insurance operations such as Claims, Information Technology, Financial and Legal will be consolidated under a single United America Insurance Group management structure that aligns resources with the two business units.
Fox noted, “We regret that these changes will result in some job losses and we are doing everything we can to mitigate the impact, including severance benefits and job search assistance. The relationships we have with our employees and our agents are critical to our success and we’re committed to keeping them strong. We are taking the best from two successful franchises to build a leaner, stronger, more agile and more competitive leader in our chosen markets.”
Fox also is chief executive officer of Fox Paine & Company, LLC, whose affiliated private-equity funds acquired a controlling interest in United National Group in September 2003. In January 2005, United America completed its merger with Penn-America Group and its acquisition of Penn Independent Corporation. In conjunction with those transactions, United National Group, Ltd. was renamed United America Indemnity, Ltd.
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