Jay Fishman Tapped to Become CEO of St. Paul

St. Paul Cos. named Jay S. Fishman, chairman and chief executive of Citigroup Inc.’s Travelers Insurance Group, to lead the business insurer as it contends with rising claims that have hurt profit.

Fishman, 49, was chosen to serve as chairman and chief executive after a yearlong search to replace Douglas Leatherdale, 64, who is retiring. Fishman also served as one of two chief operating officers at Citigroup.

They are betting Fishman’s experience at the largest financial services company under Citigroup CEO Sanford I. Weill, known for his focus on cutting costs, will help boost St. Paul’s profit. The company’s earnings have been squeezed by rising losses at its medical malpractice, reinsurance and international businesses.

Fishman’s hiring dispelled speculation that the St. Paul, Minn.-based insurer might be put up for sale.

Shares of St. Paul jumped $4.27 to $51.30, and Citigroup rose $1.44 to $45.75, both on the NYSE.