A large financial services company has announced the arrival of a chief financial officer, the departure of a top insurance executive and plans to cut costs.
Genworth Financial Inc., Richmond, Va., is hiring Patrick Kelleher to be CFO. Before Kelleher assumes the CFO title in March, he will be a senior vice president at Genworth, the company says.
Kelleher, 49, has been the chief financial officer at Transamerica Reinsurance, Charlotte, N.C., a unit of AEGON N.V., The Hague, Netherlands, since 1998. Kelleher also has worked for units of Manulife Financial Corp., Toronto, and Sun Life Financial Inc., Toronto.
Kelleher has a bachelor’s degree from Franklin & Marsh College. He is a fellow both of the Society of Actuaries in the United States and of the Canadian Institute of Actuaries.
Kelleher will receive an annual base salary of $400,000, a hiring bonus of $300,000 and at least $200,000 in additional payments by March 1, 2008, according to a report Genworth filed with the U.S. Securities and Exchange Commission.
Kelleher also will receive 20,000 Genworth stock appreciation rights and 10,000 restricted Genworth stock units, Genworth says.
Kelleher will succeed Victor Moses, Genworth’s senior vice president for actuarial and risk, who has been Genworth’s acting CFO.
Genworth’s last permanent CFO, Richard McKenney, left in August 2006 to become CFO of Sun Life.
Genworth also says George Zippel, president of the company’s protection unit, has resigned.
“Mr. Zippel will continue with the company in a non-executive role for a transition period,” Genworth says in the SEC report. “The company and Mr. Zippel are currently finalizing separation arrangements, which arrangements are not expected to result in a material expense to the company.”
“George has been a key part of our team in taking Genworth through the [initial public offering] and establishing it as a public company,” Genworth Chairman Michael Fraizer says in a statement about Zippel’s resignation. “I would like to thank George for his contributions and wish him the best in his future endeavors.”
In related news, Genworth is putting its operations in 4 business segments: retirement and protection; international; U.S. mortgage insurance; and corporate and other.
Pamela Schutz, who has been president of retirement and investments at Genworth, will become a Genworth executive vice president lead the retirement and protection segments.
The retirement and protection segments will include retirement income, managed money, life insurance, long term care insurance and institutional, but employee benefits will report directly to the Genworth chief executive, Genworth says.
Thomas Mann, who has been president of Genworth’s mortgage business, will become a Genworth executive vice president and run the international and U.S. mortgage insurance segments, Genworth says.
In related news, Genworth says it is studying how it can consolidate operations and improve efficiency.
Genworth plans to restructure its operations and record restructuring charges after the studies are completed, sometime between April 1 and June 30, the company says.