21st Century Names Allstate Exec to Top Post
21st Century Insurance Group on Tuesday named a former Allstate executive to the posts of president and chief executive, a move signaling that the Woodland Hills-based company is pursuing an aggressive growth strategy, analysts said.
Bruce Marlow was most recently president of Allstate Corp.’s Independent Agency Markets, a division that handles the insurer’s independent agents. Previously, he was chief operating officer of Progressive Corp., another national insurer.
Marlow’s appointment is effective today.
“We want to grow as fast as we are capable of doing it,” said Ric Hill, a company spokesman. “We believe Marlow brings the expertise we need. “
Marlow’s selection comes after the sudden resignation last month of William Mellick, president of 21st Century since 1994 and CEO since 1995.
Analysts said Mellick’s departure is another sign that insurance giant American International Group, which holds a majority stake in 21st Century, is strengthening its grip. AIG Chairman Maurice R. “Hank” Greenberg has complained that 21st Century’s leadership was not expanding the company fast enough.
Analysts say Marlow is experienced at nurturing companies and capable of managing an expansion effort.
At Allstate, Marlow spearheaded efforts to use the Internet in transactions with independent brokers and handled the company’s acquisition of an auto insurance division, said Maitland Lammert, an analyst at Edward Jones, a St. Louis-based broker.
“If 21st Century wants to expand its operations and make themselves more efficient and more profitable, Bruce Marlow is the person to hire,” Lammert said.
Since AIG took over the 21st Century board in 1998, the company has undergone expansion. It moved into markets in Oregon, Nevada and Washington and returned to the homeowner’s insurance market in September after a five-year absence.
AIG saved 21st Century, then called 20th Century, after it was nearly bankrupted by $1 billion in claims from the 1994 Northridge earthquake.
21st Century’s stock fell 18% last year. On Tuesday, shares declined 6 cents to close at $18.94 on the New York Stock Exchange.
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