Leadership Turnover, and Women Executives, Rule at Fireman’s Fund

By | July 7, 2011

  • July 7, 2011 at 1:52 pm
    Woman Insurance Professional, CPCU, ARM, ASLI, AAM, SM says:
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    Here’s a company that has shattered the glass ceiling. I sincerely congratulate the entire female upper echelon of Firemen’s Fund and wish them extraordinary success to demonstrate once and for all that women can lead too in achieving great things.

  • July 7, 2011 at 2:10 pm
    agent says:
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    LaRocco was a poor choice as CEO when they did it. He had been dismissed from Safeco when he tried to make them into another Progressive and sell Direct which didn’t work so well. Perhaps he tried the same thing with Fireman’s Fund and wore out his welcome there as well.

  • July 7, 2011 at 3:22 pm
    FFIC Insurance Professional says:
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    As a woman with 38 years of P&C experience of which 33 have been with FFIC, I can tell you that it has been a long, hard struggle to get women into the senior leadership ranks. As recent as 7 years ago there were only 2 at FFIC. But now as I look around our headquarters and at other large P&C companies I see woman advancing and leading in all areas. I predict that shortly after I retire woman will dominate this industry.

  • July 7, 2011 at 3:31 pm
    john says:
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    Allianz has roughly $900 Billion in assets, not $10B mentioned in the article. They mistakenly repeated the Fireman’s Fund financials when referring to Allianz.

  • July 7, 2011 at 5:40 pm
    Hey-Hey-Hey says:
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    Dear agent: As an employee, we welcome Lori as president of Fireman’s and look forwrad to her tenure. However, do not dismiss Mike so lightly. He was well liked and respected.

    Fireman’s Fund Employee

    • July 8, 2011 at 9:31 am
      agent says:
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      Hey, There is a reason why a man goes from Progressive to Safeco to Fireman’s Fund to whereever within a 10 year span. He wasn’t liked or respected at Safeco for what he did there and the CEO & Board dismissed him after a few years.

  • July 7, 2011 at 7:43 pm
    Insurance Guy says:
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    Boy, Lori sure has a steep hill to climb when it comes to turning this ship around!

  • July 8, 2011 at 10:42 am
    John Q Agent says:
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    They should re-name the ship (company) Firewomen’s Fund and good luck to them all… Reading the agency committee notes, there are a lot of unhappy campers in the agency ranks right now. I give them credit for being transparent.

  • July 8, 2011 at 11:06 am
    Bob Bichen says:
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    Explain to me why several of these companies have been fooled into thinking that the Progressive model (basically standard to non-standard lines personal auto) can be successfully laid over far more complex organizations with good results. Examples are noted everywhere from Hartford to K&K but I have yet to see a situation where the Progressive transplants have helped to improve results significantly as to quality, service, and/or employee loyalty and morale. If someone can find an example of such successes I am ready to stand corrected, but so far my search has come up empty.

    • July 8, 2011 at 12:40 pm
      agent says:
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      Progressive, GEICO have their model which works for them. Allstate bought Esurance to do more of the online sales to geeks who like to buy everything online. These people are historically not long term customers and they jump around from company to company hoping to save a buck. The Allstate agents are not happy because the company is going around them for this market. LaRocco was trying to install this type of thing at Safeco who was a heavily agent oriented company and after a few years, it was apparent it wouldn’t work and company resources were wasted so they said bye bye to him.

      • July 8, 2011 at 4:44 pm
        Bob Bichen says:
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        The Esurance deal is arguably a different subject, but an intriguing one. If you look at how much turnover (and poor morale) they seem to have had at their offices (particularly Sacramento, CA) one has to wonder if Allstate really knows what they are getting into. It is probably going to take a bit of effort and money to improve service and morale at Esurance, but this could perhaps be a good investment if they can pull it off. I agree that any monoline personal lines product doesn’t tend to have much loyalty. Much easier to keep them when they have everything (HO, auto, floaters, etc.)

      • July 11, 2011 at 1:04 pm
        MarketMaker says:
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        LaRocco came first from Government Employees’ (The name says it all). Along with former CEO Mike McGavick, he installed the multivariate pricing at Safeco and had appointed any agent who wanted a contract, including the SR22-mills and bucket shops. They siphoned off the business from Progressive and Bankers & Shippers/Integon by pating 17% first year vs. 10% paid by Progressive and Integon.

        The company was sinking like the Titanic when McGavick decided to run for U.S. Senate, and LaRocco circulated his resume’ and ended up at CNA when Paula Rosput-Reynolds, and energy company CEO took over and readied the troubled carrier to be sold to Liberty Mutual.

        Question: Is FF also going to be redied for a quick sale by Allianz?

        • July 11, 2011 at 2:21 pm
          agent says:
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          It was my understanding that LaRocco came from Progressive, but I could be wrong. He and McGavick were quite a pair for a few years and I had the displeasure of sitting and listening to their nonsense on their traveling roadshow and most Safeco agents were shaking their heads about the direction they were taking it. After McGavick left and Paula Reynolds came in, she started cleaning house. I agree that she was installed to ready the company for sale. Liberty Mutual overpaid on the sale, but Safeco has rebounded and eventually, it will pay big dividends.

          • July 13, 2011 at 3:30 pm
            MarketMaker says:
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            GEICO to Progressive to Safeco

    • July 11, 2011 at 3:40 pm
      Chad Balaamaba says:
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      GMAC Insurance…

      oh crap, you’re right.

      • July 13, 2011 at 5:25 pm
        agent says:
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        Didn’t know about the GEICO prior to Progressive. He has been making the rounds. Perhaps he will land at Allstate to run the Esurance operation. Seems to fit his modus operandi.

  • July 8, 2011 at 11:12 am
    agent says:
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    Funny post John Q. I think you are right about unhappy campers in the agency ranks with what is going on with markets. Some of our markets have the wierdest ideas dreamed up by idiots in their marketing departments. I also think the captive agents are struggling as well. Try to find a happy Farmer’s, State Farm or Allstate agent. If they are happy, they are asleep at the switch.

  • July 8, 2011 at 2:24 pm
    Phil Christe says:
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    Who else from executive team left?

  • July 8, 2011 at 2:36 pm
    Tommy says:
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    Wow, what a fluff story. I love how the story makes it look like FFIC has grown since Allianz acquired them. It’s great that 4 women are leading a company that is a shell of its former self and has no direction. They’ve laid off nearly their entire workforce and are currently in the process of offering buyouts to senior employees. These ladies are leading nothing!

  • July 8, 2011 at 4:58 pm
    agent says:
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    Anytime a company has this kind of turnover in management, they are going to struggle. They are also handicapped by headquartering in California. They might have a better chance in Texas, afterall many other California businesses have fled the state in the past 2 years because of the business environment and taxation.

    • July 11, 2011 at 4:05 pm
      Chad Balaamaba says:
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      good point; the CA HQ has been and will remain an expense albatross around FFIC’s neck for years to come. Moving to HQ to any state would be an improvement over CA…closing operations in CA would not be popular, but the expenses of the HQ campus are very large.

      • July 11, 2011 at 4:35 pm
        agent says:
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        I can only imagine what the salary structure has to be in California to pay executives, management, staff etc. Ca has one of the highest cost of living expense in the country. They could probably cut it almost in half in the south and do a lot better on their bottom line. If they write a lot of Ca exposure, it might be tough to make it as crazy as that state is with laws, weather, wild fires, earthquakes. You name it and they have it out there.

        • July 13, 2011 at 3:34 pm
          MarketMaker says:
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          They were on Steamboat Road in Greenwich, CT when Allianz acquired them. If there is any state with a more hostile business climate than CA it’s CT, and it just got worse with the new Governor who’s brother is an insurance agent. CT has the highest per capita debt out of any state and ranks 50th in business-friendliness.

  • July 10, 2011 at 11:50 am
    Insurance Guy says:
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    I hope that she cleans house from top down. The good old boy network does not work. Include HR too … nothing more than positions of job justification at FFIC unless you are black.

  • July 10, 2011 at 11:54 am
    Insurance Guy says:
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    Hope she rids FFIC of the good old boys network and yes there are females that fall into that area also.

    • July 11, 2011 at 9:42 am
      agent says:
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      Usually heads will roll when there is a change at the top whether it is male or female coming in. When Safeco changed their CEO several years ago and brought a female in, there was a wholesale change of direction and LaRocco was one of the first to go. He was trying to change the culture entirely from what Safeco had been and that just didn’t fly.

  • July 11, 2011 at 1:53 pm
    nomesaneman says:
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    “The New York native holds a bachelor’s degree in history from Princeton University…”

    Good luck — just don’t mention the war.

  • July 12, 2011 at 8:34 pm
    Current Employee says:
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    I was saddened by Mike’s departure. I don’t think Allianz gave him a full chance. So much was in place by the time he got here that it was uphill from day 1. I think Lori will do great but Mike had people pumped and on his side. Really sad when you think about it. I just hope I can make it through more leadership change as it is a great company with some great people in the rank and file.

  • July 13, 2011 at 9:48 am
    UCT says:
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    To Tommy: Wow. Are you serious? FFIC has NOT let go of “nearly their entire workforce” as you claim. You should really post facts, or proof, when posting nonsense. The company has shifted jobs from smaller offices to larger service centers, but there has been ZERO mass layoffs. The company is poised to begin hiring in the 2nd quarter of 2012. Also, your comment about Allianz was way off base. Do you have a clue? FFIC has made money EVERY YEAR for Allianz since they took over. Declining profit does NOT mean no profit. From 2005 through 2007, the company made record profits. They made a nice profit every year, including 2010. Sales are down (aren’t they everywhere?) in 2011, but the company will once again post a profit. I would suggest a simple Economics course to assist you with your lackadaisical business sense.

    As for Mike: Not everyone was a fan. He was incredibly personable, but he made promises from Day One that never came to fruition. In the eyes of the employees, Lori has been the CEO in waiting for the past couple of years. Her loyalty has been earned, Mike’s was purchased. The company may take time to become what it can be, but Lori is the person to do it. Anyone thinking the Fund is in trouble should remember who their parent company is. They have posted a profit EVERY year since Allianz has owned them and Allianz has publically stated time and time again they are going to keep FFIC. In fact, they have poured over $300 million into the infrastructure of Fireman’s Fund over the past 3 years and continue to do so. If I were a betting man, I would wager Fireman’s Fund bounces back to become a better company than they have ever been in their storied history.

    • July 13, 2011 at 10:28 am
      agent says:
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      UCT, I commend you for your optimism, but in this economy and with what is going on with the Government both at the Federal level and in California, it does not paint a rosy picture for our industry or small business in general. A survey taken by the National Chamber of Commerce of small business reveals much. 64% say they will not hire anyone next year. 12% say they plan more layoffs. That is a pretty sad picture on where we are as a country and the disastrous policies of our government which is ruining the private sector and not creating the conditions for job growth.

  • July 13, 2011 at 1:33 pm
    Insurance Lady says:
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    UCT – thanks! You said it so well and your comments are appreciated. Fireman’s Fund is poised for a fantastic next few years. Lori at the helm will only make it better. She is a really sharp lady with a loyalty and committment to Fireman’s Fund. Allianz has a strong committment as the parent and is totally behind the company. Their selection (so quickly) of Lori speaks volumes. Let’s see what the rest of these folks who have posted here have to say in 2014. Fireman’s Fund is filled with capable, hard working and loyal employees who will stand behind Lori and the senior leaders to get this job done. We are a proud company and we will remain a significant part of Allianz.

  • August 12, 2011 at 7:26 am
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    insurance fraud



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