Chubb has a slew of upper management in their late 50’s that will likely benefit from an early retirement opening up room for ACE staff or the most qualified Chubb staffers to fill. Most of Chubb’s employees will get a nice pay day when this deal goes thru by way of their stock options jumping dramatically. I wouldn’t though necessarily assume that ACE will roll in all of their people. In fact, that won’t happen. If you keep the Chubb product, you are less likely to see Chubb trained underwriters being moved out as well. I just doesn’t make sense. ACE employees have more to worry about. Remember, the deal includes making Chubb’s home office the home base after the deal is consummated.
Greenburg is looking to build what his father did with AIG. I don’t think its necessarily a bad thing, but a lot of heads form both sides will roll. The remaining Fireman’s Fund employees probably have more to worry about.
The deal is great for Chubb and ACE. Agents get to deal with a tighter high net worth market which you could argue is good for them. Clients on the other hand lose when competition shrinks.
Allianz did own FF. But sold it to ACE late Dec, Early 2015. That market is now down to Chubb/Ace, Pure, and AIG Private Client Group. Pure will likely go to market once it hits the 500m mark…which they are quickly approaching. Then what? AIG likely won’t buy it. So then who? Is Greenberg building a monster like his dad?
Agent, Allianz sold FF Personal business renewal rights to ACE. Allianz is letting the firehat brand disappear. Allianz is keeping the Commercial side of FF and is in the process of rebranding its CI lines as Allianz Global Corporate & Specialty, an existing Allianz entity.
Thanks Gone, it is pretty hard to stay up with all the changes being made by companies. I had a funny call from an ACE marketing rep the other day. He said the company may end up just being called Chubb since it is a well known name. I asked him if I could have Chubb Personal since I have ACE and he laughed and said he would have to get back on that.
The ACE IT dept is decades behind in technology using IBM mainframes from the 80’s. They are not able to have any sort of IT agility based on this restriction. It appears they have no interest in working with an IT vendor who can provide the agility needed to keep up in the ever changing IT industry. They currently rely on another layer of IT support to handle any data they receive and have a tremendous difficult time in producing anything from their system.
I agree with CT Agent. The upper management and employees with significant tenure that are on the Chubb lucrative pension plan will likely be bought out by ACE. That would be a huge burden off the balance sheet for ACE. It will not be good for morale since the ACE employees will soon realize that the Chubb employees have better benefits, so a buy-out is necessary. It will make sense for ACE to level the field for all employees. Also I think ACE taking on the Chubb brand is a very smart move and plain genius. Chubb personal lines customers recognize the Chubb brand and this is why Chubb is able to charge significantly more for their products. I don’t think ACE would be able to keep the premiums as high as Chubb if the name on the policies changed to ACE. Keeping the Chubb name gives Insureds the perception that nothing about the level of service and coverage the Chubb brand offers will change. This is a classic business school case study. Remember when AT&T was rebranded under Cingular after that merger? The perception of the customers changed. AT&T lost market share when they tried operating under Cingular, a brand that was unfamiliar to most Americans. They decided to go back to AT&T and business bounced back.
I worked at Chubb until months before the acquisition and I would not want to be in shoes of any of those employees who are not considered to be high performers or critical employees.
Overall, this is a good deal for Chubb shareholders.
I’d like to submit a story to your readers regarding one of ACE’S acquisitions, Penn Millers Insurance of Wilkes-Barre, PA.
I’ve just read Christopher J Boggs’ article on Ethics.
Please respond to where I might submit this story of an insurer and their attorneys aiding and abetting workers compensation fraud where the WCJ’s concealed the fact that his brother and mentor was (in Lackawanna County, Pennsylvania) partners in an illegal cell tower, no bid, pay to play scheme that was featured in the federal trial of that county’s presently incarcerated commissioners.
Where can I submit a documented story regarding ACE’s Penn Millers Insurance of Wilkes-Barre, PA? I’ve just read Christpher J Boggs Ethics article. I have a whopper of a story to submit regarding workers comp insurance fraud that was reported to former Attorney General of PA, Tom Corbett, but appears to have been buried for political considerations. Corbett appointed one Thomas P Cummings Jr to the WC Appeal Board in PA, following that guys testimony in federal court that he had profited in a known no bid cell tower scheme by means of corruption and partnering with a presently incarcerated Lackawanna County commissioner. The WCJ whom the criminal complaint was filed about was Cummings’ kid brother. The employer in the comp fraud case was a partner in the cell tower scheme.
Fereal Judge Richard Caputo is overdue with a decision on whether the imprisoned county commissioner, Robert Cordaro is entitled to a new trial. This story is ripe for the telling.
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The Greenburg family has never done anything not first and foremost for its benefit. Thus, this deal must be good for Ace first and foremost.
Chubb has a slew of upper management in their late 50’s that will likely benefit from an early retirement opening up room for ACE staff or the most qualified Chubb staffers to fill. Most of Chubb’s employees will get a nice pay day when this deal goes thru by way of their stock options jumping dramatically. I wouldn’t though necessarily assume that ACE will roll in all of their people. In fact, that won’t happen. If you keep the Chubb product, you are less likely to see Chubb trained underwriters being moved out as well. I just doesn’t make sense. ACE employees have more to worry about. Remember, the deal includes making Chubb’s home office the home base after the deal is consummated.
Greenburg is looking to build what his father did with AIG. I don’t think its necessarily a bad thing, but a lot of heads form both sides will roll. The remaining Fireman’s Fund employees probably have more to worry about.
The deal is great for Chubb and ACE. Agents get to deal with a tighter high net worth market which you could argue is good for them. Clients on the other hand lose when competition shrinks.
CT, I thought Allianz bought Fireman’s Fund Personal business or am I wrong? Does ACE own Allianz?
Allianz did own FF. But sold it to ACE late Dec, Early 2015. That market is now down to Chubb/Ace, Pure, and AIG Private Client Group. Pure will likely go to market once it hits the 500m mark…which they are quickly approaching. Then what? AIG likely won’t buy it. So then who? Is Greenberg building a monster like his dad?
Agent, Allianz sold FF Personal business renewal rights to ACE. Allianz is letting the firehat brand disappear. Allianz is keeping the Commercial side of FF and is in the process of rebranding its CI lines as Allianz Global Corporate & Specialty, an existing Allianz entity.
Thanks Gone, it is pretty hard to stay up with all the changes being made by companies. I had a funny call from an ACE marketing rep the other day. He said the company may end up just being called Chubb since it is a well known name. I asked him if I could have Chubb Personal since I have ACE and he laughed and said he would have to get back on that.
The ACE IT dept is decades behind in technology using IBM mainframes from the 80’s. They are not able to have any sort of IT agility based on this restriction. It appears they have no interest in working with an IT vendor who can provide the agility needed to keep up in the ever changing IT industry. They currently rely on another layer of IT support to handle any data they receive and have a tremendous difficult time in producing anything from their system.
I agree with CT Agent. The upper management and employees with significant tenure that are on the Chubb lucrative pension plan will likely be bought out by ACE. That would be a huge burden off the balance sheet for ACE. It will not be good for morale since the ACE employees will soon realize that the Chubb employees have better benefits, so a buy-out is necessary. It will make sense for ACE to level the field for all employees. Also I think ACE taking on the Chubb brand is a very smart move and plain genius. Chubb personal lines customers recognize the Chubb brand and this is why Chubb is able to charge significantly more for their products. I don’t think ACE would be able to keep the premiums as high as Chubb if the name on the policies changed to ACE. Keeping the Chubb name gives Insureds the perception that nothing about the level of service and coverage the Chubb brand offers will change. This is a classic business school case study. Remember when AT&T was rebranded under Cingular after that merger? The perception of the customers changed. AT&T lost market share when they tried operating under Cingular, a brand that was unfamiliar to most Americans. They decided to go back to AT&T and business bounced back.
I worked at Chubb until months before the acquisition and I would not want to be in shoes of any of those employees who are not considered to be high performers or critical employees.
Overall, this is a good deal for Chubb shareholders.
I’d like to submit a story to your readers regarding one of ACE’S acquisitions, Penn Millers Insurance of Wilkes-Barre, PA.
I’ve just read Christopher J Boggs’ article on Ethics.
Please respond to where I might submit this story of an insurer and their attorneys aiding and abetting workers compensation fraud where the WCJ’s concealed the fact that his brother and mentor was (in Lackawanna County, Pennsylvania) partners in an illegal cell tower, no bid, pay to play scheme that was featured in the federal trial of that county’s presently incarcerated commissioners.
Where can I submit a documented story regarding ACE’s Penn Millers Insurance of Wilkes-Barre, PA? I’ve just read Christpher J Boggs Ethics article. I have a whopper of a story to submit regarding workers comp insurance fraud that was reported to former Attorney General of PA, Tom Corbett, but appears to have been buried for political considerations. Corbett appointed one Thomas P Cummings Jr to the WC Appeal Board in PA, following that guys testimony in federal court that he had profited in a known no bid cell tower scheme by means of corruption and partnering with a presently incarcerated Lackawanna County commissioner. The WCJ whom the criminal complaint was filed about was Cummings’ kid brother. The employer in the comp fraud case was a partner in the cell tower scheme.
Fereal Judge Richard Caputo is overdue with a decision on whether the imprisoned county commissioner, Robert Cordaro is entitled to a new trial. This story is ripe for the telling.