Hartford Fires Two Over Spitzer’s Suit
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Hartford Financial Services Group Inc. dismissed two of its underwriters for not cooperating with New York Attorney General Eliot Spitzer’s probe into the insurance industry, sources close to the matter said.
In a statement, Hartford spokesman Joshua King said “our conclusion that these employees failed fully to cooperate with the New York Attorney General gives us no alternative but to part ways with them. There is simply no room for compromise regarding The Hartford’s commitment to cooperate.”
He said the company is continuing a thorough internal probe related to Mr. Spitzer’s investigation regarding bid rigging in the insurance industry and has instructed its employees to cooperate fully with both external and internal investigations. Mr. King declined to provide any further details regarding the two dismissed employees, citing privacy issues.
But sources confirmed that the employees were underwriters from the company’s property-casualty operations’ Los Angeles office.
Dismissals and resignations have become increasingly common occurrences in the insurance industry following Spitzer’s October 14 lawsuit against broker Marsh & McLennan Cos.
Marsh announced Monday that it has asked Roger Egan, president and chief operating officer of its risk unit Marsh Inc., and Christopher Treanor, Marsh Inc.’s chairman and chief executive of Global Placement, to step down from their positions. Senior Vice President and General Counsel William Rosoff also stepped down.
Marsh also replaced its chief executive, Jeffery Greenberg, in late October with Michael Cherkasky. And The Wall Street Journal, citing sources close to the matter, reported last week that Marsh dismissed William Gilman, the former executive marketing director of Marsh’s global broking unit, as well as three other Marsh insurance brokerage executives – Edward McNenney, Gregory Doherty, and Glenn Bosshardt.
Last Thursday, ACE Ltd. fired two workers – including ACE Casualty Risk President Geoffrey Gregory – and suspended three other workers from the unit. ACE also fired Patricia Abrams, who was an assistant vice president in ACE’s excess casualty unit. She previously pleaded guilty to criminal misdemeanor charges of bid-rigging.
