Vault Guide To The Top Insurance Employers

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TOP INSURA EMPLO

INSURANCE EMPLOYERS
VAULT GUIDE TO THE TOP
2006 Vault Inc.
TOP INSURA EMPLO

VAULT GUIDE TO THE TOP
INSURANCE EMPLOYERS
EDITED BY LAURIE PASIUK AND THE STAFF OF VAULT
2006 Vault Inc.
Copyright 2006 by Vault Inc. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Vault Inc. Vault, the Vault logo, and the most trusted name in career informationTM are trademarks of Vault Inc. For information about permission to reproduce selections from this book, contact Vault Inc., 150 W. 22nd St., 5th Floor, New York, NY 10011, (212) 366-4212. Library of Congress CIP Data is available. ISBN 1-58131-390-x Printed in the United States of America
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Table of Contents
INTRODUCTION 1
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Insurance Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Actuary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
EMPLOYER PROFILES
Aetna Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

AFLAC Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 American International Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 The Allstate Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 AON Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Blue Cross and Blue Shield Association . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Chubb Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 CIGNA Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Conseco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Equitable Life Assurance Society, The . . . . . . . . . . . . . . . . . . . . . . . . . . .57 Erie Indemnity Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 GEICO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Guardian Life Insurance Company of America, The . . . . . . . . . . . . . . . . .67 The Hartford Financial Services Group, Inc. . . . . . . . . . . . . . . . . . . . . . . .72 Hilb, Rogal & Hobbs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76 John Hancock Financial Service, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 Liberty Mutual Holding Company Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 Lincoln Financial Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90 Marsh Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94 Massachusetts Mutual Life Insurance Company . . . . . . . . . . . . . . . . . . . .98 MetLife, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 Mutual of Omaha Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . .108 Nationwide Mutual Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . .112 New York Life Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116 Northwestern Mutual Life Insurance Company, The . . . . . . . . . . . . . . . .122 Oxford Health Plans, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127 Physicians Mutual Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . .132
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Vault Guide to the Top Insurance Employers

Introduction
Principal Financial Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135 Progressive Corporation, The . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140 The St. Paul Travelers Companies, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .145 State Farm Mutual Automobile Insurance Company . . . . . . . . . . . . . . . .150 Thrivent Financial for Lutherans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154 UnitedHealth Group Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159 Unitrin, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164 UnumProvident Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167 Wellpoint, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171 W.R. Berkley Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175
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Introduction
Insurance
Risky business
The insurance industry combines to form a multi-trillion-dollar market dealing in risk. In exchange for a premium, insurers promise to compensate, monetarily or otherwise, individuals and businesses for future losses, thus taking on the risk of personal injury, death, damage to property, unexpected financial disaster and just about any other misfortune you can name.
The industry often is divided into categories such as life/health and property/casualty. Life insurance dominates the mix, making up about 60 percent of all premiums. The bigger categories can be subdivided into smaller groups; property insurance, for instance, may cover homeowners, renters, auto and boat policies, while health insurance is made up of subsets including disability and long-term care. But these days, you can find insurance for just about anythingeven policies for pets (a market that grew 342 percent from 1998 to 2002, with sales of up to $88 million, according to research firm Packaged Facts), weddings and bar mitzvahs, and the chance of weather ruining a vacation. Even insurance companies themselves can be insured against extraordinary lossesby companies specializing in reinsurance. Celebrity policies always get a lot of presswhile rumors that Jennifer Lopez had insured her famous asset (sorry) for $1 billion proved to be unfounded, other such policies do indeed exist. In fact, the phrase million dollar legs comes from Betty Grables policy for that amount (a similar policy is held by TVs Mary Hart); other notable contemporary policies include Bruce Springsteens voice, reportedly covered at around $6 million.
The worlds top five

Though the U.S. is, on average, ahead of the rest of the world in terms of insurance coverage, insurance is a truly global industry. Ranked by 2003 revenue data from the Insurance Information Institute, the top five insurance companies are Germanys Allianz, Frances AXA, the Netherlands ING, New
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York-based American International Group, Inc. (AIG) and Italys Assicurazioni Generali. Other leading U.S. insurers include State Farm, MetLife, Allstate, Prudential, Aetna and Travelers. Consolidation is the name of the gameHoovers reports that the top ten property/casualty insurers account for nearly half of all premiums written. Perhaps the most notable example of the mergers and acquisitions mania in the industry was the $82 billion merger in 1998 between Citicorp and the Travelers Group, which created Citigroup. Some insurance companies have also begun to reconfigure themselves from mutual insurers, or those owned by policyholders (e.g., State Farm), to stock insurers, or those held by shareholders (e.g., Allstate). This process, known as demutualization, promises to raise even more capital for insurance companies to indulge in more acquisitions.
Insurance investigations
These days, life at the top for a number of insurance heavyweights has been less than perfect. An investigation by federal and state prosecutors into AIGs accounting practices revealed accounting problems that forced the company to reduce reported profits by nearly $4 billion over five years, largely the fault of former CEO Maurice Greenberg and former CFO Howard Smith. Greenberg, personally picked by AIG founder Cornelius Vander Starr to steer the company, stepped down from his perch in March 2005 after nearly four decades on the job. That May, New York State Attorney General Eliot Spitzer filed a complaint against AIG, Greenberg and Smith, over accusations of securities fraud, common law fraud and a number of violations of insurance and securities laws. Investigations into insurance industry practices are not uncommon these days. The federal government has taken a keen interest in what is known as finite or financial reinsurance, a specific type of insurance that, at its most basic level, typically involves a premium laid down by a corporation large enough to cover all the expected losses into an account held with the insurer, according to CFO.com. The carrier is allowed to return the difference to the insured if the cost of losses is less than the premium; if the losses turn out to be greater, the insured pays an additional premium. Additional investigations are popping up. In May 2005, the Chubb Corp received a subpoena from federal prosecutors investigating its use of
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nontraditional insurance that could artificially boost financial results. The announcement came on the heels of a November 2004 statement that Spitzers team, in an investigation into bid-rigging practices between insurance brokers and insurers, requested information from Chubb, along with a number of other companies. At that point, executives at AIG and Ace had already pleaded guilty to such practices. And, in June 2005, Allstate Insurance agreed to pay $34 million in restitution and fines to settle claims from California insurance regulators, accusing the company of overcharging on 250,000 policies over a five-year period. Also, as of July 2005, Marsh & McLennan stands accused of manipulating bids and receiving kickbacks for funneling business.
Though the headlines have mostly come from major corporations, the ripple effects of such negative press have leaked across the entire industry. To this end, the FBI launched a nationwide review of insurance practices at more than 7,000 companies in May 2005, looking for problems in accounting patterns similar to those at AIG. According to a report in The New York Times the same month, many industry officials were surprised at the FBI review, while some declared it was premature for the FBI to associate AIGs faulty accounting with the entire industry.
Branching out
The last 25 years have seen a shift in the industry away from life insurance toward annuity products, focusing on managing investment risk rather than the (inevitable) risk of mortality. With increasing deregulation in the U.S. and Japan, these insurers are moving ever closer to competition with financial services firms. Indeed, the business of the insurance industry doesnt end with insurance. The worlds top insurance companies have broadened their array of financial services to include investment management, annuities, securities, mutual funds, health care management, employee benefits and administration, real estate brokerage and even consumer banking. The move towards financial services follows the 1999 repeal of the Glass-Steagall Act, which barred insurance companies, banks and brokerages from entering each others industries, and the Gramm Leach-Bliley Act of 1999, which further defined permissible acts for financial holding companies. Now insurance companies are free to partner with commercial banks, securities firms and other financial entities.
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At the speed of the Internet

Like many other industries, the insurance market has been transformed in recent years by the Internet. Traditionally, insurance products have been distributed by independent agents (businesspeople paid on commission) or by exclusive agents (paid employees). But insurers who sell over the Web reap the benefits of lower sales costs and customer service expenses, along with a more expedient way of getting information to consumers, which is transforming those traditional methods by cutting costs and increasing the amount of information available to consumers. By 2005, Celent Communications estimates that the online insurance market will top $200 billion, or 37 percent of personal insurance premiums, up from 19 percent in 2003. Of course, an automated approach to doing business means fewer salespeople are neededCelent reports that insurance giant Cigna, for instance, eliminated 2,000 jobs in 2002 because of increased efficiencies. With more IT comes a greater need for IT securityCelent estimated that U.S. insurers would spend roughly $770 million by 2006 on security alone. Aside from the threat of viruses, hackers and the like, regulations have made security a top prioritythe Health Information Portability and Accountability Act (HIPAA), for instance, which went into effect in 2003, sets strict standards for the privacy and security of the patient information transferred between health insurers and providers. Response to 9/11 The September 11 terrorist attacks sent shockwaves through the industry, not only costing insurers roughly $23.5 billion in property-related losses and $40 billion in other associated claims, but also causing insurers and re-insurers to take a hard look at how they would handle the risks associated with possible future terrorist acts. The Terrorism Risk Insurance Act, signed into law by President Bush in November 2002, aimed to deal with the nearly incalculable risk posed by this threat. Among other things, the law defines a terrorismrelated event as one with a minimum of $5 million in damages. It provides for the sharing of risk between private insurers and the federal government over a three-year period, with each participating company responsible for paying a deductible before federal assistance is available. If losses are incurred above the insurers deductible, the government is obliged to pay 90 percent. While the measure met with a considerable amount of grumbling from all parties involved, for the most part the industry acknowledged that the
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plan at least allows for the potential risk to insurers from terrorism-related disasters to be quantified. With TRIA set to expire at the end of 2005, lawmakers are currently considering legislation to renew the Act. Those in favor of the law might have an uphill battle ahead of them: a June 2005 statement from Treasury Secretary John W. Snow, speaking on behalf of the Bush administration, said the law should not be extended in its current form since it had achieved temporary objectives of stabilizing the private insurance sector during the period of economic uncertainty following the attacks. Though Secretary Snow admitted removing the law would likely result in less terrorism insurance written by insurers, higher prices, and lower policyholder take-up, in the wake of the ongoing economic revival, the administration would not support the act unless the insurance industry agreed to shoulder more costs. Industry insiders worry removing the government backstop would increase insurance premiums for owners of office space in high-risk cities, and claim they cannot afford to cover terrorism without some government assistance. Meanwhile, analysts with the Consumer Federation of America agree with Secretary Snow that the existing program was too generous and has created a situation in which taxpayers could potentially be liable for taking on huge amounts of risk that insurance companies can afford to take on for themselves. The Property Casualty Insurers Association set up a task force in February 2005 to evaluate how terrorism affects workers compensation insurance and commercial coverage. Christopher Zwygart, a task force member and assistant vice president for finance at West Bend Mutual Insurance Co., calls terrorism a very troubling risk to insurance companies because of its unpredictable nature.
When disaster strikes

Despite the catastrophic disaster level of September 11, the nations most costly insurance incidents come straight from the hands of Mother Nature. 2004s hurricane season, during which a succession of four hurricanes battered the Southeast corner of the country, racked up insured property losses estimated at $22.9 billion, exceeding the property damage incurred during the September 11 attacks, which registered at $18.8 billion. Florida lawmakers passed a bill that December, eliminating multiple hurricane deductibles as of May 2005. Currently, consumers can choose either a 2 or 5 percent deductible; most choose 2 percent. The 2004 hurricane season also
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brought on more than two million insurance claims, a number far greater than the 750,000 filed following 1992s Hurricane Andrewto date the industrys single most costly natural disaster. For the full year 2004, insured catastrophe losses (including tornadoes, hurricanes, terrorism, winter storms, earthquakes, wind/hail/flood and fire) were estimated at a record $27.5 billion.
Fraud: The $100 billion challenge

Another trend in the industry is the problem of fraud, which costs an estimated $85 billion to $120 billion per year, according to the Insurance Information Institute. III data shows property/casualty insurance fraud cost the industry $29 billion in 2003, while auto insurance fraud racked up $14 billion in false claims in 2004. Topping the cake is health care fraudcosting the nation a whopping $95 billion on an annual basis, according to some estimates. Fraud comes in two flavors, hard and soft, with hard fraud being a deliberate invention or staging of an accident, fire or other type of insured loss to reap the coverage. Soft fraud covers policyholders and claimants exaggeration of legitimate claims, such as when victims of burglaries overstate the value and amount of lost property, or when car accident claimants pay damage claims to cover their deductibles.
Unhealthy health care

Medical malpractice is another hot topic. Health insurers generally get a bad rap from the public, with a 2003 Harris Poll indicating that just 40 percent of health insurance companies do a good job of taking care of their customers (in fact, only the tobacco industry ranked lower in the poll). The media and politicians give plenty of air time to horror stories about managed care companies slighting critically ill patients, and insurers refusing to cover necessary treatments or technologies. Is this reputation deserved? Depends on who you ask, but the industry has its own battles in health carefor example, it sees medical malpractice claims, which have skyrocketed in recent years, as a true crisis. Indeed, according to the Insurance Information Institute, some insurers have quit writing malpractice policies entirely rather than shoulder the risk (the median malpractice award in 2001, the latest year for which this figure is available, was $1 million). Insurance company Farmers, which racked up more than $100 million in malpractice-related
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losses in 2003, announced it would get out of malpractice coverage in September of that year. Interestingly, a July 2005 study by the Center for Justice and Democracy found that malpractice rates had increased 120 percent between 2000 and 2004, while the amount of money paid in claims increased by a paltry 5.7 percent in comparison, and the surpluses collected by insurers increased by 33 percent. Researchers culled data from annual statements filed with state insurance departments from the nations 15 biggest medical malpractice insurers. Insurers blasted the studys methodology, and claimed it failed to take into account additional costs insurers face, such as underwriting. The Physician Insurers Association of America reports an average wait time of four and a half years between the time an accident occurs and the claim is paid, a lapse which forces companies to collect premiums based on future cost expectations. Lawrence Smarr, president of the PIAA, called the study a meaningless comparison no respectable actuary would consider. Connecticut Attorney General Richard Blumenthal asked the National Association of Insurance Commissioners to review the study, indicating that such disparate numbers warranted the need for much tougher and aggressive oversight to prevent and punish profiteering. Jay Angoff, a former state insurance commissioner of Missouri, agreed: In recent years, medical malpractice hasnt been unprofitable, but its been phenomenally profitable. In the meantime, the Bush administration is working on litigation to cap some malpractice damages in an effort to drive down health care costs.
The whole(sale) story

In a curious twist, Costco Wholesale Corp., the largest wholesale club operator in the U.S., announced the start of a pilot program in July 2005 designed to offer individual health insurance policies to California shoppers maintaining executive membership status. The company says the program is geared toward people who cannot get group insurance, such as the jobless or owners of family businesses. For now, Costco insurance is only available in the Golden Staterepresentatives for the company say spreading insurance to its 18 million members nation wide is most likely unfeasible, as some states have larger membership bases than others. Though most analysts say the plan will likely have little effect on the 45 million uninsured Americans from coast to coast, some have suggested that discounters like
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Costco may spur growth in locally based, low-premium niche plans. Meanwhile, insurance brokers are quietly wondering if Costcos wholesale plan could have ramifications of Wal-Mart proportions on brokerage firms. Glenn Melnick, director of the USC Center for Health Financing, Policy and Management, claims low-priced health products have the potential to really shake up the market and force insurers to develop more low-cost products.
Working in insurance
According to the U.S. Bureau of Labor Statistics, the industry employed 2.2 million people in 2002. Of these jobs, three out of five were with insurance carriers, while the remainder were with insurance agencies, brokerages and providers of other insurance-related services. Another 141,000 workers in the industry were self-employed in 2002, mostly as insurance sales agents. Most insurance agents specialize in life and health insurance, or property and casualty insurance. But a growing number of multi-line agents sell all lines of insurance. An increasing number of agents also work for banking institutions, non-depository institutions, or security and commodity brokers. Medical, financial, and health insurance are among the fastest growing industry sectors. Common jobs in the industry include claims adjusters, appraisers, examiners, and investigators; marketing and sales managers; customer service representatives; insurance sales agents; underwriters; lawyers; computer systems analysts; computer programmers; and computer support specialists. Data provided by the BLS suggests that though corporate downsizing and changes in business practices will limit growth in the industry in the next few years, numerous job openings are expected as older workers leave or retire.
Insurance Agent
Most people would rather not think about insurance at all. But when the time comes to buy into a plan, an insurance agent can be a big help. Insurance agents sell one or more types of insurance, such as life, property, casualty, health, disability and long-term care. Insurance policies provide protection to individuals and businesses against loss or catastrophe.
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Well help you plan

Insurance agents dont just hawk the same insurance plans to everyone they meet. They consider the financial status and life situation of their clients and assist them in selecting their optimal insurance policy. Some policies can be designed to provide retirement income, funds for the education of children or other benefits. Increasingly, insurance agents and brokers offer comprehensive financial planning services to their clients, such as retirement planning counseling. Because of this, many insurance agents and brokers are licensed to sell mutual funds and other securities. Insurance professionals prepare reports, maintain records and help policyholders settle insurance claims. Specialists in group policies may help employers provide their employees the opportunity to buy insurance through payroll deductions. Agents may work for one company or independently for several companies. Brokers do not sell for a particular company, but direct their clients to companies that offer the best rate and coverage. The insurance industry is broadly split into two main categories: property and casualty and health and life. Property and casualty insurance agents and brokers sell policies that protect individuals and businesses from financial loss as a result of automobile accidents, fire or theft, tornadoes and storms, and other events that can damage property. Health and life agents sell insurance that covers medical bills and provides compensation to a family in the event of a death.
People, people, people

An insurance agents success is contingent upon his or her ability to seek out and retain clients and on the agents reputation among colleagues. Difficulty in developing a client base drives many insurance agents from the field early. However, those who are able to withstand such adversity can look forward to high salaries and career autonomy.
Actuary
Actuaries are vicarious risk-takers. They calculate risk by analyzing statistics and, based on their analysis, make decisions regarding pricing and investment strategies. Some actuaries work in the financial services industry, but seven
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out of 10 are employed in the insurance industry. Whatever the industry, actuaries decide whether a venture is financially sound. Actuaries in the insurance industry calculate the probability that there will be a return on their investment. To do this, they consider probabilities of death, dismemberment, disability, or property loss. Actuaries are the reason teenagers driving sports cars pay such prohibitively high premiums. Actuaries ensure that insurance prices will enable the company to pay all claims and expenses and that the price yields a profit. Their keen mathematical skills and analytical abilities are a boon in investing, classifying risk, planning pensions, managing credit and pricing corporate offerings. Once they reach upper-level management positions, actuaries are often called upon to determine and implement complex company policies. Actuaries also often testify in court to verify the loss incurred by a policyholder who has been disabled or killed and in divorce cases as to the current value of pension benefits. Actuaries may also appear before public agencies to contest legislation that affects their businesses. These professionals also work as independent consultants who are hired by insurance companies, corporations, hospitals, labor unions and health care providers for their advice. Due to the breadth of topics they may work on, it is important for the actuary to keep current with many different industries and fields. Actuaries earn competitive salaries from the time they start and are paid for every hour of credit that they earn from actuarial exams. Actuaries spend up to eight months a year studying for these exams, which test everything from specific knowledge (casualty insurance, life insurance, pension services) to linear algebra, probability, calculus, statistics, risk theory and actuarial mathematics. Actuaries are pressured to complete the entire series of examinations as soon as possible in order to advance in the field. The first set of exams brings the actuary to the associate level and takes four to six years to complete. Preparation for the exam requires hours of study outside of work, dramatically impacting the personal and social lives of potential actuaries. Actuaries can spend up to 10 years or more taking exams and studying to reach the title of fellowship, particularly if they stop along the way to get married and have families. The long hours required to gain titles and prestige in the actuarial field do not go unrewardedstarting salaries are very high and continue to climb for more experienced actuaries.
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TOP INSUR EMPL

EMPLOYER PROFILES
Aetna Inc.
151 Farmington Avenue Hartford, CT 06156 Phone: (860) 273-0123 Fax: (860) 273-3971 www.aetna.com
THE STATS
Employer Type: Public Company Stock Symbol: AET Stock Exchange: NYSE Chairman: John W. Rowe, MD President and CEO: Ronald A. Williams 2005 Employees: 27,677 2005 Revenue ($mil.): $19,904.1
LOCATIONS
Hartford, CT (HQ) Services in all 50 U.S. states.
DEPARTMENTS
Group Insurance Health Care Large Case Pensions
KEY COMPETITORS
CIGNA Guardian Life Prudential
EMPLOYMENT CONTACT
www.aetna.com/working/index.htm
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Aetna Inc.
THE SCOOP
AETNA mountain high enough

Aetna is one of the leading managed health care companies in the U.S. with its more than 14.65 million medical members, 13.03 million dental members, 9.34 million pharmacy members and 13.68 million group insurance members. The company also maintains a nationwide network of more than 721,000 health care providers, including over 431,000 primary care and specialist physicians and 4,323 hospitals. Aetna offers benefits in all 50 states, aiming its offerings to small, mid-sized and large multi-site national employers. The company is made up of three entities: ActiveHealth Management, Strategic Resource Company and The Chickering Group, a 2003 acquisition that provides insurance to college students. Fortune ranked Aetna No. 2 in the health care category in its 2005 Most Admired Companies list.
The Eliphalet in the room

Aetna started out with Judge Eliphalet Bulkeleys decision to start an insurance company. He found fleeting success when he created Connecticut Mutual Life Insurance in 1846, but one year later a group of the companys agents usurped control. Undeterred by this setback, Bulkeley started a second company, Aetna Life Insurance, with a group of Hartford businessmen in 1853. The company expanded steadily through the 1860s and 1870s, when Eliphalets son, Morgan, took over the reins as president. Morgan Bulkeley, who also served as mayor of Hartford, governor of Connecticut and as a U.S. senator, brought the company into the limelight by opening up multiple insurance lines. Morgan went on to serve a 43-year term as Aetnas president. By 1922, the company had become the largest multiple-line insurance provider in the U.S., offering every branch of insurance from auto to maritime.
A major transformation
Todays Aetna is much different from the one of the 1920sor even just a few years ago. In 1996 the firm began a major transformation, shifting its focus from multiline insurance to managed health care. First Aetna sold its property/casualty business to Travelers for $4.1 billion. Right after that it merged with U.S. Healthcare in an $8.9 billion deal that created one of the top health care companies in the U.S. In August 1999, the company expanded its health care operations when it bought Prudential HealthCare for $1 billion. (To satisfy antitrust regulations Aetna had to
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Aetna Inc.
sell its NYLCare commercial HMO unit in Texas.) In December 2000, Aetna sold its financial services and international unit to ING Group. By the fourth quarter of 2005, Aetna declared a fourth-quarter profit rise of 41 percent as it added customers and minimized costs. Still, on the year as a whole, prospects werent always rosy. Aetnas net income fell 28 percent, to $1.63 billion ($5.40 a share) from the $2.25 billion ($7.15 per share) in 2004, when income bulged by $1 billion in tax credits associated with operations sold by Aetnas former parent. Revenue in 2005 rose 13 percent to $22.5 billion, from $19.9 billion a year earlier, and is expected to grow by around 14 percent in 2006.
End of the Rowe

CEO John Rowe announced his successor, Ronald Williams, in January 2006. Williams is a man with a dramatically different personality than the boundarypushing retiring head. Five years earlier, the two men formed the leadership that led to Aetnas turnaround from an example of all that was wrong with contemporary insurance to an industry leader. After completing an undergraduate degree in psychology at Chicagos Roosevelt University, Williams earned a masters in management from MIT and went on to hold high-level jobs at WellPoint,Health Networks Inc. and its subsidiary, Blue Cross of California, before coming to a faltering Aetna in 2001, the year before Rowe was hired.
Some promising pick-ups

In hopes of adding new customers, Aetna acquired HMS Healthcare, a company providing access to health networks for around 1.6 million workers mainly in Michigan and Colorado, for around $390 million in June 2005. Aetna said HMS appealed to it because of its well-established relationships with over 58,000 doctors, hospitals and health care providers. HMS, which employed around 400 people at the time, operates as part of Aetnas Business Alliances group, which provides products and services to other health plans, associations and universities. In December 2005, Aetna completed previously announced deals to acquire assets from a behavioral health company and buy the remainder of a specialty pharmacy venture that it did not already own. For around $57.1 million, the company bought the part of Magellan Health Services dedicated to managing mental health and substance abuse care for Aetna members. The Magellan assets included three dedicated behavioral health care centers in El Segundo, Calif.; Sandy, Utah; and King of Prussia, Penn., as well as a national network of health care providers and nearly
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Aetna Inc.
500 employees. The purchase signified that Aetna would launch a full-service behavioral health business, entering the market with about 11 million members. In a separate deal, Aetna announced the completion of a deal for the 60 percent of Aetna Specialty Pharmacy LLC (ASP) it didnt yet own. Aetna launched ASP in 2004 as a joint venture with Priority Healthcare Corp. ASP sits on a 63,000-squarefoot facility in Orlando, and serves Aetna members with diseases that require extensive medication and exhaustive coordination, such as multiple sclerosis, Crohns disease, HIV/AIDS, rheumatoid arthritis and pulmonary hypertension.
A new plan
In January 2004, Aetna started offering a new health care plan it said will cut employer costs while offering insured members a larger choice of doctors. Under the plan, dubbed Aexcel, Aetna established a network of doctors practicing cardiology, cardiothoracic surgery, general surgery, orthopedic surgery, gastroenterology, and obstetrics and gynecology-medical specialties that represent a bulk of health care spending. The company said that the program will help cut costs by sending patients to more efficient health care providers. In June 2004, Aetna announced that Aexcel would become available in a total of nine geographic locations with 12 medical specialties by January 2005, and that the new areas targeted include Dallas/Fort Worth, north Florida, Seattle, Atlanta, Houston, the D.C. metro area, Los Angeles, Connecticut and metropolitan New York/Northern New Jersey. One major Aexcel member is wholesale warehouse merchandiser Costco, which began offering the program to Seattle-based employees in January 2005, as well as introducing Aexcel to more employees in other areas of the country.
Ooh a college boy, eh?

Aetna named Troyen Brennan, a nationally-known Harvard University doctor and professor, as its medical director in January 2006. Brennan said one of the reasons he found Aetna attractive was that health insurers would likely become more and more important in deciding the type of medical coverage Americans receive as they develop new products, such as high-deductible plans. Under such plans, Brennan explained to the Boston Globe, consumers pay more of the initial costs of medical care, which insurers and employers think will lead people to make wiser decisions about what treatments to get and where to get them. CEO Rowe said that the company strategized to hire a physician of national renown for the position as a way of mending fences in the historically contentious relationship between insurance
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Aetna Inc.
companies and the medical profession. As chief medical officer, Brennans job includes working with doctors in Aetnas network as well as with medical professional societies to determine what treatments get covered, running Aetnas quality-of-care program and helping create so-called pay for performance incentives for doctors and hospitals. These programs aim to pay medical providers more if they provide higher-quality and lower-cost care.
How much does Aetna like charity? About $19 million worth
Aetna awarded more than $19 million in grant funding during 2005, $2.6 million of which was given through the foundations Regional Community Health Grant Program funding 95 nonprofits in 20 states. (The remaining $16.4 million came through Aetna and the Aetna Foundation with matching grants and direct awards to support health, education, civic and community, arts and culture, and diversity initiatives.) The RCHGP doled out the $2.6 million in six geographic locations, including matters such as diabetes, cultural competency, childrens oral health and depression. Since its launch in 2001, the RCHGP has awarded over $11 million, including $8 million for disparities in health programs.
Diverse, and knowing it

Aetna is no stranger to recognition. In 2005, the National Coalition on Health recognized the companys dedication to outreach work in supporting physicians treating Hispanic/Latino people with diabetes with an eValue8 Innovation Award. Aetna went back onto Hispanic Magazines Corporate 100 List in 2005 after a twoyear absence, a year that also found the company on the Top 30 Companies for Executive Women list of the National Association for Female Executives for the fourth consecutive time. Savoy Professional placed the company on its 2004 Top Places to Win for black business professionals in 2004, the same year that Latina Style magazine named it to its Top 50 Companies for Latinas list for the seventh consecutive year.
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Aetna Inc.
GETTING HIRED
You Aenta had a job like this before

Aetnas web site lists the numerous opportunities available with the company, which include: actuarial, audit, customer service/claim, information technology, nursing, sales/service and underwriting. There is also a searchable database of available jobs, divided by job type, keyword or location. More information about working for Aetna is available at www.aetna.com/working/index.htm.
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AFLAC Inc.
1932 Wynnton Road Columbus, GA 31999 Phone: (706) 323-3431 Fax: (706) 324-6330 www.aflac.com
THE STATS
Employer Type: Public Company Stock Symbol: AFL Stock Exchange: NYSE Chairman and CEO: Daniel P. (Dan) Amos 2005 Employees: 6,970 2005 Revenue ($mil.): $14,363
LOCATIONS
Columbus, GA (HQ) Offices in all 50 states and U.S. territories, as well as throughout Japan.
KEY COMPETITORS
AXA Life Insurance MetLife Taiyo Life
EMPLOYMENT CONTACT
aflac.com/us/en/careers
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AFLAC Inc.
THE SCOOP
Quacking all the way to the bank

Founded in Columbus, Georgia in 1955 by the brothers AmosJohn, Paul and William (George and Ringo apparently opted for another industry)the American Family Life Assurance Company (Aflac) began offering life, health and accident insurance, not faring so well in the highly competitive market. Today, the company focuses primarily on supplemental health and life insurance policies for special health conditions, most notably cancer treatment. Ranked 158 on the Fortune 500, Aflac is one of the largest supplemental insurance providers in the United States and is a dominant force in Japan, where one in four Japanese households are covered by an Aflac policy.
Halfway to one hundred

The Amos brothers opened their doors for business in November 1955 in a one-room office in downtown Columbus, Georgia. The business struggled in its early existence and as it coasted towards bankruptcy, the brothers sought out untapped markets for their only shot at survival. Inspired by premiums written especially for Polio in the 1940s and 1950s, the Amoses chose to sell cancer insurance following their fathers death from the disease. The companys cancer-expense policy, the worlds first, launched in 1958, and after one year, Aflac had sold upwards of a million dollars in policies, expanding beyond Georgia state lines. By 1971, Aflac operated in 42 states. The 1980s found American sales lagging as a result of federal and state investigations into specialty disease insurance. Despite attacks from critics who claimed that such policies were costly and only covered one disease, the inquiries led nowhere and publicized the insurance, leading to increased demand and competition. Sales in the U.S. declined and the Japanese market grew into the centerpiece of Aflacs revenue stream. After building a multinational company on the back of cancer insurance, John Amos himself fell to the disease in 1990. His nephew Dan Amos took the reins, and dubbed the company Aflac two years later. Amos explained the move was an attempt to promote the companys profile, taking into account so many other companies using the word American. (Plus, in hindsight, who wants to endure the duck/voiceprovider Gilbert Gottfried shriek his way through American Family Life Assurance Company?)
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AFLAC Inc.
Learning Japanese
John Amos first considered Japan as a prime market for Aflacs products after a trip to the 1970 Worlds Fair in Osaka. Noting that the countrys national health care system neglected to protect its citizens from the enormous financial burden of cancer treatment, Amos spent the next four years seeking approval to peddle his wares, finally getting licensing after convincing government officials that his policies did not compete with existing products. He also gained backing from prominent investors in the insurance and medical industries. In 1974, Aflac officially opened for business in Japan, only the second foreign company licensed to sell insurance policies in the Land of the Rising Sun. Now, 30 years later, Aflac owns a quarter of the market share and is the No. 1 life insurance company in Japan both in terms of individual policies in force and the largest foreign provider of premium insurance. Aflac is also the most profitable foreign company in the country. The famed Aflac duck appears to translate as well in Japanese as the companys policies do. In July 2001, the ingratiating mallard debuted on Japanese television, albeit with a slightly different voice for his Aflac! quack. The campaign, rolled out to support the release of Aflacs first accident policy in Japan, quickly caught on. By 2004, Japan brought in the majority of Aflacs sales, nearly 75 percent of its total revenue.
In the business of caring

For individuals, Aflac U.S. sells cancer and specified disease plans and a number of types of health insurance, including accident and disability, fixed-benefit dental, life, vision, long-term care, short-term disability, and coverage for indemnity and hospital intensive care. Aflac services include several programs for employers looking for coverage for their employees. The FLEX ONE plan allows employees to contribute pre-tax dollars towards qualified benefits, such as health insurance and child care, while the companys Single-Point Billion option consolidates billing and financial requirements from multiple insurance carriers into a single overall benefits group.
Ducking the trend

In September 2005, the Aflac duck was added to Madison Avenues Walk of Fame during an induction ceremony paying homage to Americas most beloved advertising icons. During the inaugural celebration of advertising week in 2004, the duck beat out 24 other legendary figures including Ronald McDonald, the Energizer bunny and
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AFLAC Inc.
Mr. Peanut in an online poll. (Only the M&M talking candies received more votes.) The duck, created by ad agency The Kaplan Thaler Group (KTG) Ltd. for a January 2000 commercial, was generations younger than its fellow inductees (Mr. Peanut, M&Ms, the Pillsbury Doughboy and Tony the Tiger). The duck is one of the most successful corporate icons in memory, prompting an increase in brand recognition from 12 percent to over 90 percent, according to Aflac. The duck has been a generous performer over its career, sharing screen time with such luminaries as Melania Trump, Yogi Berra and Chevy Chase.
GETTING HIRED
Swimming with the Duck

The careers section of Aflacs web site offers information for sales positions and corporate employment. Those in brokering have the chance to manage their own time and schedule. New brokers are encouraged to participate in specialized programs including orientation, training and earning the proper certifications. For more information on becoming an independent broker, call Aflac at (800) 448-1771. Corporate jobs are searchable on the Aflac web site and are separated into several job categories, including actuarial, aviation, administrative, facilities, government relations/legal, printing/press operations, communications, finance and accounting, human resources, management, information technology, sales support and administration, operations and project management. Interested candidates can post a resume on the site and create a user profile. Potential corporate applicants can call Aflac at (800) 522-0011 if they have any specific concerns.
Fiscal sense
Since the beginning of the 21st century, Aflac has focused on redesigning its compensation plans for its workers to maximize growth while lowering costs. The company established a conservative approach to base salaries, concentrating instead on employee retention with better benefits. The company also moves money into incentive plans based on performance, not fixed costs. The benefits package includes the usual line of health coverage, as well as retiree health benefits for all workers, college tuition for employees children and grandchildren, and on-site child-care and health clinics. At the basis of Aflacs compensation reorganization is a year-end profit-sharing bonus for every employee, an addition that has paid out at or above its
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AFLAC Inc.
predicted target for 14 years straight. In February 2005, Aflac added stock option grants for all employees, ranked by job position with a three-year cliff vesting intended to improve retention.
Kudos all around

The ducks induction was not the only recognition Aflac received in 2005. Fortune magazine named the company as one of the Top 50 Employers for Women, unsurprising with a workforce that is almost 70 percent female, with 30 percent in upper-level management. Aflac was also named to many other magazine lists in 2005, including Americas Most Admired Companies, the 100 Best Companies to Work For in America, the Global 500 Listing and the Top 50 Companies for Minorities. In April 2005, Essence magazine named Aflac a Great Place to Work for African-American Women.
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American International Group, Inc.

70 Pine Street New York, NY 10270 Phone: (212) 770-7000 www.aig.com
THE STATS
Employer Type: Public Company Stock Symbol: AIG Stock Exchange: NYSE Non-executive Chairman: Frank G. Zarb President and CEO: Martin J. Sullivan 2005 Employees: 97,000 2005 Revenue ($mil.): $108,905
LOCATIONS
New York, NY (HQ) Locations in 50 states and around 130 countries.
DEPARTMENTS
AIG American General AIG SunAmerica American Home Assurance National Union Fire Insurance Company
KEY COMPETITORS
Allstate Chubb St. Paul Travelers
EMPLOYMENT CONTACT
www.aig.com/careers
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THE SCOOP
Nothin but an AIG thang, baby

Ironically founded in China, American International Group (AIG) is one of the largest insurance firms in the world. Through its subsidiaries, AIG has a range of insurance and related operations in the U.S. and some 130 countries. In addition to the companys primary business in general and life insurance, AIG also offers financial services, retirement services and asset management and its companies serve institutional, commercial and individual customers. AIG companies are the largest underwriters of commercial and industrial insurance in the U.S. General insurance operations include the companys domestic brokerage group (DBG) operations subsidiaries, which provide nearly every type of business insurance (such as significant commercial or industrial property insurance, excess liability, inland marine, workers comp and excess and umbrella coverage) as well as specific insurance types including directors and officers liability, difference-inconditions, kidnap-ransom, export credit and political risk.
Ice cream man gets Shanghaid, starts enormous international company

In 1919, former ice cream parlor proprietor Cornelius Starr started American Asiatic Underwriters, a property and casualty insurer, in Shanghai, and two years later started selling life insurance policies there as well. By 1926 Starr had opened an office in New York City, which focused on foreign risks experienced by American companies. With World War II appearing imminent, Starr relocated to the U.S., focusing on Latin America once the war cut off European business opportunities. A brief attempt to return to China in the postwar period was curtailed when the ruling Communist party booted the company. By 1967, Starr chose his successor, Maurice Greenberg, who would guide the company for nearly 40 years. Greenberg gained control of the freshly minted American International Group, then a holding company for Starrs worldwide insurance companies. Two years later, the company went public. Eight years into Greenbergs rein, AIG had become the largest foreign life insurer in various Asian countries. In the 1980s, AIG began its investment practices in Asia, expanded its market share in health care and formed a financial services group. The 1990s found AIG entering
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eastern Europe and resuming its business in China in 1993. The company triumphed with financial services, providing them to developing nations. The company launched the Asian Infrastructure Fund (a mutual fund for individual investors) in 1995 and acquired SPC Credit, a finance company for individuals and commercial clients with business in the Philippines, Taiwan and Thailand. In 1999, the company added operations in Azerbaijan, Romania, Bulgaria and Sri Lanka. When Greenberg stepped down in March 2005, Martin J. Sullivan took up the reins ... just in time to steer the company through the worst hurricane season to date in the insurance industry.
Enduring hurricane season

AIGs earnings for 2005 plummeted from the year before resulting from record breaking losses in connection with Hurricanes Katrina, Rita and Wilma. The losses were largely explained by a $2.11 billion after-tax catastrope loss from the hurricanes, which were originally predicted to incur a $1.1 billion loss. (This came on the heels of a $729 million after-tax loss from the 2004 hurricane season.) During the earnings announcement, the company also said that it would be restating financial results over the last five years. The results stood in sharp contrast to numbers from the second quarter 2005, when profits grew 44 percent over the same period a year before, which the company chalked up to strong Asian life insurance businesses and gains from derivatives. AIG continued looking to Asia for growth. In December 2005, the company announced that its subsidiary, American International Underwriters Overseas, Ltd., received license from the Vietnamese government to operate a wholly-owned general insurance company in the country. Vietnams prime minister first announced plans for the license, the first of its kind granted by its government to an American insurance organization, during a visit to the U.S. Stock Exchange. Headquartered in Hanoi and with a second branch in Ho Chi Minh City, the general insurance company will be called AIG Vietnam General Insurance Company Limited and will market property-casualty insurance products to individuals and businesses.
GETTING HIRED
The careers section of AIGs web site offers a searchable database listing employment opportunities in the U.S. and on every continent except Antarctica (for now). Job seekers can search the database by location, functional areas (all 85 of
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them), position type (part- or full-time), how long ago the job has been posted, experience level and by AIG subsidiary (45 in the U.S.). Interested candidates can apply online by submitting a resume or creating an account. The company set up a separate web site for college students nearing graduation and searching for summer internships, and first jobs for recent college grads and MBA grads. These job seekers can go to www.aig.com/college to see whats available.
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The Allstate Corporation

2775 Sanders Road Northbrook, IL 60062 Phone: (847) 402-5000 Toll Free: (800) 574-3553 Fax: (847) 326-7519 www.allstate.com
THE STATS
Employer Type: Public Company Stock Symbol: ALL Stock Exchange: NYSE Chairman, President and CEO: Edward M. Liddy 2005 Employees: 37,200 2005 Revenue ($mil.): $35,380
LOCATIONS
Northbrook, IL (HQ) Operations in 49 U.S. states and Canada.
KEY COMPETITORS
AIG GEICO State Farm
EMPLOYMENT CONTACT
www.allstate.com/Careers
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THE SCOOP
Hands across the nation

The countrys largest publicly-held personal lines insurer in the U.S., Allstate is a Fortune 50 company with $149 billion in assets and a revenue that approaches $40 billion annually. The company offers 13 major lines of insurance, including automotive, property, life and commercial, as well as lines of retirement and investment products and banking services. Allstate employs some 70,000 people in total, with 39,000 employees, over 13,000 agents, financial specialists and sales professionals.
Allstate works out of four business divisions. The Allstate Protection unit, accounting for about 93 percent of Allstates 2004 consolidated insurance premiums, provides private passenger, auto and homeowners insurance in addition to other personal and casualty packages including landlord, personal umbrella, renters, residential fire and boat owners insurance. Allstate Financial services include term life, universal life, single premium life, variable universal life, whole life, long-term care, accidental death, hospital indemnity, cancer, dental, heart/stroke and limited benefit medical insurance products, among others. The Allstate Financial segment, generally aimed at high-wealth and middle-income customers, also includes funding agreements, money marketing accounts, savings and checking accounts, certificates of deposit and first mortgage loans. The Corporate and Other division handles holding company activities and otherwise non-insurance activities. The Discontinued Lines and Coverages division is made up of insurance coverage it no longer offers, such as asbestos, environmental and other discontinued lines claims.
A fellow commuters tip pays off big

As Sears Roebuck & Co. President General Robert E. Wood rode the 7:28 a.m. commuter train headed for Chicago, he struck up a conversation with insurance broker Carl Odell, who suggested that Sears should offer auto insurance by mail. Wood, certain that the automobile was fast becoming a foundation of American life despite the economic downturn of the Great Depression, used the name of a tire sold in the Sears company for the name of his new firm, and the Allstate Insurance Company opened shop in April 1931. A tool-and-die maker from Aurora, Ill., became the first policyholder that May, and the company paid its first claim to a customer who walked into the one-room office with a door handle broken off in an attempted car theft.
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Progress remained slow during the Depression and WWII, but the economic boom of the postwar decades and suburban growth made cars a virtual necessity, translating into massive profits for both Sears and Allstate. The late 1950s saw the addition of home and other property and casual lines, as well as life insurance policies. In 1960, Allstate Enterprises was created to deal with all financial services not related to insurance, and founded the Allstate Motor Club, the first national automotive assistance service, in 1961. The company began to add savings and loan (S&L) subsidiaries in the 1970s and 1980s, a strategy that began being dismantled by the early 1990s, culminating in Allstate going public in 1993.
A hard rains gonna fall

One downside to having such a massive stake in the American insurance industry, both in terms of assets and geographic spread, is the toll taken by widespread catastrophe, be it terrorist attack or natural disaster. Following the bombardment of the 2004 hurricane season in Florida, Allstate decided to cease writing commercial insurance policies and not renew some 95,000 residential homeowner policies. Allstate was the publicly-traded insurer hit the hardest by the 2005 hurricane season, as Katrina and Rita caused $3.68 billion in pre-tax catastrophe payouts, nearly $2 billion more than the same quarter a year before, when Florida was lashed by four major hurricanes. Allstates third quarter loss amounted to $1.55 billion, or $2.36 per share, though revenue rose 5.9 percent to $8.94 billion. Wall Street was unfazed. The stock rose slightly as pundits explained that it was not the worst-case scenario many predicted and that the mighty Allstate had plenty of cash to ride out the circumstances.
Allstate takes its stand with advertising

In few industries is advertising as ubiquitous and necessary as insurance, as rival companies battle to sway customers to a product that many consumers find intangible and have difficulty discerning the difference between companies. Allstate, long known for the Youre in good hands with Allstate slogan first drafted in 1950, has shifted its tactics to appeal to increasingly savvy and skeptical consumers. In 2000, the company spent 70 percent of its ad budget on TV commercials; in 2005, that number would drop to 40 percent. Rather than blanket the television spectrum, Allstate focused its television spending on highly watched programs like the season finales of popular television shows such as Desperate Housewives and 24, under the assumption that major event shows are more likely to be watched by larger groups of
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people and viewers will be paying more rapt attention than ordinary episodes. 24 was partly chosen because of the prominent role played by actor Dennis Haysbert, who is also the recognizable face of Allstates One Stand ad campaign. In an ironic maneuver, the company so heavily invested in safe driving became the principal sponsor of the Allstate 400 in 2005, a Nascar race formerly known as the Brickyard 400. (Haysbert was selected as the Grand Marshal of the race, heading the ceremonial pre-race parade lap and waving the green flag to start the race.) In November 2005, Allstate launched a new campaign that diverged from the quacking ducks, geckos and offended cavemen that typically mark insurance advertising. (Industry spending overall soared, with 2004 outlay at $2.2 billion, and insurers had spent $1.8 billion by August 2005.) For the first time in more than 20 years, Allstate embarked on a promotional effort to advocate industry changes following the devastating hurricane seasons of 2004 and 2005. The full-page ads, which ran in The Wall Street Journal, The New York Times, The Washington Post, The Washington Times and Roll Call, guide readers to a web site called ProtectingAmerica.org. The site explains Allstates recommendations for industry reform, including making building codes more stringent and enhancing disaster response. Allstate also sponsored hurricane shows on the Weather Channel. The campaign included Allstates first issue ads since the debates over mandatory seatbelts and air bags in the early 1980s.
GETTING HIRED
Offer your good hands

Allstates web site offers a searchable database of available positions in a number of different career paths, including actuarial, agency owner, auditing, claims, finance and accounting, information technology, investments and personal financial representatives. The web site also offers links to information about recruiter visits as well as events held on college campuses. Allstate encourages interested applicants to submit their resumes online.
Diverse recognition
Allstate has a commitment to diversity, stating on its site that 28.5 percent of its employees are minorities and 59.3 percent are women. Others have taken note. Allstates senior VP of human resources Joan M. Crockett got the nod as Chicagoland
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HR Professional of the Year for, among other things, creating a technology platform offering self-service HR resources to Allstates employees as well as an online training tool with more than 2,000 courses and other developmental resources. LATINA Style magazine named Allstate one of the 50 Best Companies for Latinas to Work for the eighth consecutive year, and DiversityInc. named the company as a Top 10 Company for Diversity. Allstate was also named by the National Association of Female Executives as one of the 30 best companies nationwide for female executives.
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AON Corporation
Aon Center 200 E. Randolph Street Chicago, IL 60601 Phone: (312) 381-1000 Fax: (312) 381-6032 www.aon.com
THE STATS
Employer Type: Public Company Stock Symbol: AOC Stock Exchange: NYSE Executive Chairman: Patrick G. Ryan President and CEO: Gregory C. Case 2005 Employees: 46,600 2005 Revenue ($mil.): $9,837
LOCATIONS
Chicago, IL (HQ) More than 500 offices in 120 countries.
KEY COMPETITORS
Aflac CIGNA MetLife
EMPLOYMENT CONTACT
aon.com/about/careers
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AON Corporation
THE SCOOP
The oneness
From its headquarters in Chicago, Aon Corporation is a leading insurance and reinsurance brokerage, providing risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. Aon, which means the oneness in Gaelic, serves a client base that includes governments, corporations and businesses, insurance companies, professional organizations, independent agents and brokers and other entities. The companys organizational structure melds its six businesses into the Oneness. These Global Business Units create a worldwide network. The primary businesses are: Aon Consulting Worldwide (7,000 consultants in 120 countries providing consulting, outsourcing and insurance brokerage services); Aon Re Global (offices in 40 countries offering advisory and consulting services to maximize risk transfer programs); Aon Risk Services (retail brokering and risk management services division helping with various risk analysis, including political liabilities, litigation and mobile employees); Aon Warranty Group (the largest service contract provider in the U.S. and one of the largest in the world providing service plans and warranties for home buyers and sellers); Combined Insurance Company of America (which sells individual non-cancellable accident, life and health insurance and has over 8,000 agents and employees worldwide); and Virginia Surety Company Inc. (Aons principal U.S. property/casualty insurance company, founded in 1927).
Aon from a Stone

Aon traces its heritage back to pre-Depression era Detroit, when the mother of a young man named W. Clement Stone brought him in to sell insurance policies for her small insurance agency in 1918. After spending a year selling insurance that was low in both cost and benefit, he founded his own agency, the Combined Registry Co., for which he recruited a network of agents across the country. Stone streamlined his operations due to the economic hardships of the Depression, and in 1939 bought American Casualty Insurance Co. of Dallas (which he added to other acquisitions and rolled into the Combined Insurance Co. of America in 1947). Successful growth in the 1950s and 1960s allowed the company to explore overseas expansion in the 1970s, in spite of the economic recession that hovered during much of the decade. After 10 years of sluggish performance under Stones son Clement Jr.,
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AON Corporation
the 79-year-old Stone retook control until merging with Ryan Insurance Co. in 1982, installing Patrick Ryan as CEO. With Ryan at the helm, Combined trimmed staff, concentrated on insurance brokering, and, in 1987, changed the companys name to Aon. By 1995, Aon had divested all of its direct life insurance operations to focus on consulting work.
Starting anew, Case

After Patrick Ryan announced his resignation as CEO in September 2004, Aon named Gregory Case, an executive at consultancy McKinsey & Co., as his successor in April 2005. Ryan remains with the company as executive chairman of Aons board of directors, and dubbed Case a proven leader and a team builder. Cases selection was somewhat of a surprise; the 42-year-old didnt have corporate management experience, but had a firm grasp of the industry, having headed McKinseys global insurance practice. For the six months prior to Cases appointment, McKinsey had been working with Aon in a consulting arrangement, an experience Case said provided him with a good sense of the firms strengths and areas needing improvement.
Aon in flux
Aons British arm learned in October 2005 that they would endure some 750 layoffs over the next two years. With some $54 million in severance payouts, Aon expects to spend $200 million to $300 million in overall restructuring costs as the corporation cuts jobs and exits leases in 2005 and 2006. After two straight quarters of sliding brokerage revenue, the focus on lowering expenses became Aons primary concern, as the company abandoned fees from insurers. The cut jobs represented some 1.6 percent of Aons worldwide workforce, and 11 percent of its UK staff. Aons move was one part of a three-year restructuring plan announced in August to save some $150 million a year by 2008. In all, the company said about 1,400 jobs would be cut.
GETTING HIRED
Hop Aon-board
The careers section of Aons web site (www.aon.com/us/about/careers) offers a database of positions available within the U.S. and in its 120 locations worldwide. The database is searchable by job category as well as geographic location.
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AON Corporation
Departments include actuarial, brokerage, consulting, human resources, information technology, sales/sales management and underwriting. All of Aons hiring is done at a local level. The company suggests that interested candidates call the numbers listed on the specific job descriptions if there are any questions or concerns.
Get a job, keep a life

Aon offers its employees options to maintain a healthy balance while working for the company. With managerial approval, employees can take advantage of familyfriendly programs offering alternative work schedules for flexibility. The Alternative Work Schedule program is made up of four options: telecommuting (doing some work from home); flexible work schedules (customized personal shifts); compressed work schedules (adjusting work for more hours per day over fewer days); and job share work schedules (two or more employees share one position).
Diversitys rewards
Aon won several awards in recognition of its commitment to a diverse workforce in 2005. The company received the 2005 Diamond Award, presented by the National Association of African Americans in Human Resources, as well as the first annual Kaleidoscope Award for how it treats its GLBT employees. The National Society of Hispanic MBAs also awarded Aon for its participation and cooperation. In addition, the Minority Corporate Counsel Association, in recognition of Aons success in hiring, retaining and developing promising young legal talent, named Aon its 2005 Employer of Choice.
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Blue Cross and Blue Shield Association

225 N. Michigan Avenue Chicago, IL 60601 Phone: (312) 297-6000 Fax: (312) 297-6609 www.bcbs.com
THE STATS
Employer Type: Private Association President and CEO: Scott P. Serota 2005 Employees: 150,800
LOCATIONS
Chicago, IL (HQ) Washington, DC Licensees throughout the U.S., Africa, Asia, Australia, Canada, Latin America, the Middle East and Western Europe.
KEY COMPETITORS
Aetna Kaiser Foundation Health Plan Oxford Health
EMPLOYMENT CONTACT
www.bcbs.com/careers
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THE SCOOP
I guess thats what they call the Blues

Headquartered in Chicago, the Blue Cross and Blue Shield Association (BCBSA) peddles business strategy, technical support, consulting proficiency and health care services for its key business partnersindependent Blue Cross and Blue Shield Plansforming the Blue Cross and Blue Shield System, Americas largest and oldest family of health benefits entities. BCBSA manages 39 chapters, which provide health care coverage to more than 90 million Americans, one-third of the citizenry, with indemnity insurance, HMOs, PPOs, Point of Service plans and fee-for-service plans. BCBSA also oversees Medicare services for the federal government.
Along with its Chicago corporate headquarters, BCBSA has an office in Washington, D.C., employing around 850 employees in total. Collectively, the Member Blue Plans employ some 150,000 people nationwide, placing the Blue System among the 20 biggest employers in the country. The group provides insurance to large companies, small businesses and individuals. Of the 93 million Americans covered by a Blue Plan, 57.5 million are in PPOs, 16.5 million in HMOs, 13.5 million in traditional feefor-service programs and 5.5 in point-of-service products. Since the Medicare programs debut in 1965, the Blue System has partnered with the government to process claims and payments. Blue Medicare contractors process more of the day-to-day work of paying Medicare claims than any other insurance company. In 2003, its contractors processed 90 percent of more than 170 million total claims from hospitals and other health care institutions, and 72 percent of more than 881 million claims from physicians and other health care practitioners. Across the country, over 90 percent of hospitals and almost 80 percent of all physicians contract directly with Blue Cross and Blue Shield companies.
Getting the blues

Born of necessity during the early days of the Great Depression, the genesis of the Blue Cross idea came from businessman Justin Ford Kimball in 1929. Kimball offered 1,300 Dallas-area schoolteachers the opportunity to purchase 21 days of hospital care by paying small amounts to the Baylor University Hospital. A unique feature of the plan was a community-based rating system that established premiums on community claims experience rather than the individual conditions of health care members.
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The Blue Shield concept began coming out of the Pacific Northwest around the same period, where hazardous working conditions and chronic illness ran rampant in the lumber and mining camps. To provide medical coverage for workers, employers joined with physicians who would accept a monthly fee for their services. These programs formed the basis for the Blue Cross and Blue Shield Plans that would follow. In 1934, E.A. van Steenwyk, then executive secretary with the predecessor firm of Blue Cross and Blue Shield in Minnesota, distinguished his hospital care program with a solid blue Greek cross design, a symbol that soon began appearing in other parts of the country. Carl Metzger, an early leader in the Blue movement, planned to create a symbol that would distinguish the new medical services plan in Buffalo, New York. His Blue Shield symbol soon flourished around the country. Several states awarded the plans with nonprofit status, and in 1936, the American Hospital Association created the Committee on Hospital Service (renamed the Blue Cross Association in 1948) to manage them. In 1948 the American Medical Association blocked a merger attempt between Blue Cross and Blue Shield, though the two segments intensified efforts to unite on public policy issues and each formed a nonprofit entity to organize its activities. By 1960, Blue Cross insured around one-third of the country. During the 1960s, both Blues began administering Medicare and other government programs, and by 1970, half of Blue Cross premiums were derived from government sources. The 1970s found both the Blues embracing cost-control measures such as hospital admissions reviews, with many plans deserting the community rating system, as most beginning to emphasize preventative care in HMOs or PPOs. The Blues eventually merged in 1982 in an attempt to improve their bottom line, but there was little financial improvement. Still, despite their nonprofit status, the Blues were big business by the 1990s, offering high salaries to executives but still demanding their unique regulatory status. In 1996, Blue Cross of California became the first Blue to relinquish its tax-free status when it was acquired by WellPoint,Health Networks, a managed care subsidiary it formed in 1992. WellPoint,turned it into for-profit status, placing all stock into a charitable foundation that garnered the earnings from the subsequent IPO. Other Blues soon followed suit. In 1997, Blue Cross Connecticut joined with the insurance provider Anthem (which merged with WellPoint,in 2004), while half of the Blues in the country formed a partnership called BluesCONNECT hoping to keep pace with national providers by offering a nationwide benefits organization. The
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CBSA also began looking abroad, acquiring licenses in Europe, South America and Asia. In 1999, Anthem affiliated with or acquired Blues in Colorado, Maine and New Hampsire. In 2000, after years of lobbying, New York finally allowed Empire Blue Cross and Blue Shield to switch to for-profit status.
Getting carded
BCBSAs BlueCard Program links participating health care providers and independent Blue Plans across the country. The network allows Blue Plans to serve national corporate employers including Microsoft, Xerox, United Airlines, UPS and Wal-Mart. Blue Plans cover half of all Fortune 500 companies and over 75 percent of all Fortune 100 companies. The BlueCard Program allows members to find health care services when traveling or away from their home plan service area.
Governmental blues
Since 1959, when Congress signed the Federal Employees Health Benefits Act, Blue Cross and Blue Shield Plans countrywide have enrolled more than 50 percent of the federal workforce, retirees and their families. When President Lyndon Johnson signed Medicare into law in 1965, a new federal health insurance program was born, with the Blue organizations building an infrastructure that propelled the program in its early years and continues today. Among the plans is the Federal Employee Program (FEP), the largest privately underwritten health insurance contract in the world with more than 4.4 million enrollees.
Banking on new services

BCBSA announced plans in December 2005 to start a bank to manage health savings accounts and other financial services popular with clients enrolled in consumerdirected health plans. The Blue Healthcare Bank is expected to begin by summer 2006, pending regulatory sanction. Some 400,000 Blue Cross Blue Shield customers are registered in consumer-directed plans, believed by many to be the biggest development to hit the health care industry since the HMOs. Consumerdirected plans pair high-deductible insurance with a savings account for consumers to keep cash for out-of-pocket costs. The Blue Healthcare Bank will provide debit cards that allow consumers to pay health care expenses from their personal accounts, even supplying credit lines if costs exceed individual savings. The number of Americans enrolled in similar plans is expected to expand from 4 million to 20 million by 2008. Some 70 million Blue Cross Blue Shield members nationwide could
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benefit from the bank, which would not be limited to customers with health savings accounts.
Daily briefings
BCBSA operates the web site BCBSHealthIssues.com, which is focused on public policy in relation to the health care industry. The site hosts BlueTV and BlueRadio, which include videos and recordings of speeches and discussions by health care experts. The site also offers the HealthIssues Daily Briefing, a collection of daily stories related to Medicare and other health care matters. The web site posts occasional special features that explore, in detail, pressing matters in American health care, and also provides BCBSA with an outlet for its various research articles, covering topics that range from Medicare, small business coverage, medical liability reform, rising drug prices, keeping health care affordable, prescription drug reimportation and the uninsured.
Getting Blue with the community

Blue Cross and Blue Shield Plans sponsor the PBS show Second Opinion, a documentary series that features doctors and members of the medical community discussing real-life medical cases. BCBSA also runs the nonprofit organization Blue Cross and Blue Shield Foundation on Health Care, an entity that controls national multi-site health services research, working with health plans, academic institutions and government agencies to share research and advance policy. BCBSA also founded the Health Competition Program, intended to educate parents, teachers, coaches and students about the hazards of using performance enhancing drugs.
GETTING HIRED
Association and more

BCBSAs offices are in Washington, DC and Chicago, Ill., and the careers section of its web site (www.bcbs.com/careers/index.html) lists various opportunities in these home offices, such as consultant, executive assistants, executive directors, project managers and systems consultants. The site also has a link for applicants interested in technical job opportunities, who are encouraged to complete a personal profile expressing experience and interests.
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The site also lists job openings at various Blue-related plans, including: Blue Shield of California, WellPoint,Health Networks (California), Anthem Blue Cross and Blue Shield (Colorado), CareFirst Blue Cross and Blue Shield (D.C.), Blue Cross and Blue Shield of Florida, NASCO (Georgia), Wellmark Blue Cross and Blue Shield of Iowa, The Regence Group (Idaho), Blue Cross and Blue Shield of Illinois, Blue Cross and Blue Shield of Massachusetts, Horizon Blue Cross and Blue Shield of New Jersey, Regence Blue Cross and Blue Shield of Oregon, Highmark Blue Shield (Pennsylvania) and Blue Cross and Blue Shield of Vermont.
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Chubb Corporation
15 Mountain View Road Warren, NJ 07059 Phone: (908) 903-2000 Fax: (908) 903-2027 www.chubb.com
THE STATS
Employer Type: Public Company Stock Symbol: CB Stock Exchange: NYSE Chairman, President and CEO: John D. Finnegan 2005 Employees: 10,800 2005 Revenue ($mil.): $14,082.3
LOCATIONS
Warren, NJ (HQ) More than 120 offices in 29 countries.
KEY COMPETITORS
AIG Liberty Mutual State Farm
EMPLOYMENT CONTACT
chubb.com/careers/chubb1668.html
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Chubb Corporation
THE SCOOP
Theyre not big-boned, theyre just Chubby

The Warren, N.J.-based Chubb Corporation is a holding company for a group of property and casualty insurance firms known as the Chubb Group of Insurance Companies. For well over a century, Chubb has offered property and casualty insurance to businesses and individuals alike. In 2006, Fortune magazine ranked Chubb No. 156 in the Fortune 500 largest companies in America, as well as No. 4 on the list of 34 property/casualty insurers. Forbes ranked Chubb No. 241 on the Forbes Global 2000 list, based on composites of sales, profits, assets and market value in 2005. With more than 120 offices in 29 countries worldwide, Chubb employs around 10,800 people, and serves commercial and personal clients through 8,000 independent agents and brokers worldwide. In 2004, Bests Review named 15 companies out of the 3,300 it rates that have achieved an A.M. Best rating of A+ or higher in each of the past 50 years. Three of theseFederal, Vigilant and Great Northernare Chubb member companies. Chubb offers three general types of insurance servicescommercial, specialty and personal. As a commercial insurer, Chubb is recognized for writing niche business in addition to underwriting, offering over 90 insurance policies. Chubbs specialty insurance includes an assortment of specialized executive protection and professional liability products for private and public companies, financial institutions, nonprofits and health care organizations, earning endorsements from such industry groups as the National Newspaper Association, the Association of Corporate Counsel and the American Bar Association. Chubb personal insurance offers products for persons with fine homes and possessions who need more coverage options and higher limits than typically included in standard insurance policies, such as Chubbs Masterpiece product suite, which markets insurance for primary and vacation homes and their contents, city homes, valuables, automobiles, boats and personal liability. Chubb is a renowned industry leader in insuring yachts valued at over $1 million.
Getting Chubby
Founded in New York City in 1882 by Thomas C. Chubb, the company began as Chubb & Son (with his son Percy) to underwrite insurance for cargo and ships. Shortly thereafter the company became the U.S. manager for Englands Sea Insurance Co. and co-founded New York Marine Underwriters (NYMU), which became Chubbs principal property/casualty affiliate, Federal Insurance Co., in 1901.
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Chubb Corporation
In the early 1920s, Chubb expanded to Chicago, though growth was understandably tepid during the Depression, though by 1939 Chubb had recovered enough to acquire Vigilant Insurance Co. In 1959, the company bought Colonial Life and Pacific Indemnity in 1967, the same year Chubb Corporation became a holding company, which Chubb & Son named the administrator of the property/casualty insurance businesses. Real estate became the goal in 1970, when Chubb picked up Bellemead Development, and to expand its specialized insurance services, started offering insurance packages for entertainment productions, including Broadway shows and movie sets. By 1991, Chubb had combined three separate entities into the Chubb Life Insurance Co. of America.
Across the pond

Chubb has maintained connections in Britain since the 1880s, when it forged an alliance with U.K.-based Royal & Sun Alliance Insurance Group. Royal owned around 5 percent of Chubb, while Chubb, in turn, held three percent of Royal. In 1993, the companies renewed their partnership, looking to spread U.K. Chubbs insurance policies to high net-worth individuals. When financial difficulties cropped up at Lloyds of London, the insurance market consequently slackened its restrictions about doing business with corporate insurance firms, with Chubb opening an office at Lloyds in 1993. The following year, Chubbs added Alexander & Alexanders (now an Aon subsidiary) personal business lines business. In 1996, the defection of a major Royal client caused Chubb to sever its agreement with its old comrade.
They know who you are, they know where you live
The company partnered with Identity Theft 911, LLC in November 2005 to help Chubb members recover or recreate missing personal identification and documentation after a disaster or other calamity. Homeowners would receive free access to the newly minted Identity Disaster Response 911 (IDR9) service, and could also obtain assistance from Identity Theft 911 if they become victim to identity theft. The IDR9 helps those affected by catastrophic events to get emergency identity authentication and verification as well as access to investment and bank accounts. Identity Theft 911 will act in concert with government agencies and financial institutions to help Chubb customers who have suffered identity theft to replace birth certificates, drivers licenses, passports, Social Security cards, checks and credit/debit cards. Identity Theft 911 will even go so far as to help when Chubb
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Chubb Corporation
members lose their wallets and all the identification and financial information therein.
New acquisition in the harbor

In December 2005, Chubb announced the completion of a strategic transaction involving Harbor Point Limited, a new global reinsurance company. Chubb got $200 million worth of 6 percent convertible notes and warrants from Harbor Point, representing, in the aggregate, some 16 percent of the equity of the new company on a fully converted basis. Chubb anticipates the transaction will bring a pre-tax gain of around $200 million. The agreement also guarantees that Chubb will receive cash payments over the next two years from Harbor Point, the amount to be determined by the amount of reinsurance business placed through Chubb by Harbor Point during both the transition period and the quantity of Chubb business renewed by Harbor Point.
Reeling from Katrina

When Chubb announced its financials for 2005, it was no surprise that it took some heavy hits from the years record-breaking hurricane season, which devastated the Southeast coastal areas of the U.S. Net income for 2005 was $1.8 billion, or $8.94 per share, compared to $1.5 billion, or $8.01 per share, in 2004. Operating income, defined by the company as net income excluding after-tax realized investment gains and losses, was $1.6 billion ($7.73 per share) for 2005, up from $1.4 billion ($7.26 per share) in the year before. Hurricane Katrina, in particular, slammed the company, with pre-tax costs of $511 million related to the storm. The amount included net losses of $415 million, net reinsurance reinstatement premiums of $51 million and a $45 million charge from Chubbs share of losses estimated by Allied World Assurance Company, Ltd. related to the storm.
GETTING HIRED
Getting chummy with Chubb

The careers section of Chubbs web site (chubb.com/careers/chubb1668.html) offers a searchable database of employment opportunities in a variety of different job categories, including accounting, actuarial, appraisal, Chubb Commercial Insurance, Chubb Specialty Insurance, Chubb Personal Insurance, claims, human resources,
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Chubb Corporation
information technology, loss control, the operations services division and surety. Job opportunities are available in 20 states and the District of Columbia.
Diversity in action
In September 2005, Chubb earned the highest possible score (100 percent) on the Human Rights Campaign (HRC) Foundation 2005 annual report card on corporate Americas treatment of gay, lesbian, bisexual and transgender (GLBT) employees for the third consecutive year. The HRC rates Fortune 500 companies on a 100-point scale based on seven key indicators of fair treatment for GLBT employees, including policies prohibiting discrimination based on sexual orientation, gender identity and equal health care benefits.
Chubb received one of three 2006 Catalyst Awards for the development and advancement of women in business. Catalyst honored Chubb for the companys Reach Up, Reach Out, Reach Down program, which encourages employees to take charge of their own careers in an inclusive atmosphere while reaching out to and advising their co-workers. The award emphasized Chubbs employee resource groups such as the Minority Development Council, Womens Development Council, Gay & Lesbian Employee Network and Asian-American Business Network, all of which have access to executive leadership.
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CIGNA Corporation
1 Liberty Place Philadelphia, PA 19192 Phone: (215) 761-1000 Fax: (215) 761-5515 www.cigna.com
THE STATS
Employer Type: Public Company Stock Symbol: CI Stock Exchange: NYSE Chairman and CEO: H. Edward Hanway 2005 Employees: 26,139 2005 Revenue ($mil.): $16,684
LOCATIONS
Philadelphia, PA (HQ) Locations across the country and abroad.
KEY COMPETITORS
Blue Cross John Hancock Financial Services MassMutual
DEPARTMENTS
CIGNA Group Insurance CIGNA HealthCare CIGNA International
EMPLOYMENT CONTACT
cigna.com/general/careers
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CIGNA Corporation
THE SCOOP
CIGNAfying benefits
The Philadelphia-based CIGNA Corp. is one of the countrys leading employee benefits organizations, offering health care products, group life, accident and disability insurance, retirement products and investment management, in addition to behavioral health, vision and dental coverage. CIGNA also provides life, accident, health and expatriate employee benefits insurance in selected international markets, mainly Asia and Europe. CIGNA Corp. divides its operations into several segments: health care (CIGNA HealthCare); life and disability (CIGNA Group Insurance); run-off reinsurance (CIGNA Reinsurance); and other. The catch-all other segment includes deferred gains from the sale of the individual life insurance and annuity entity in 1998, corporate life insurance with outstanding policy loans, the settlement annuity business and several investment management services. CIGNA HealthCare, headquartered in Bloomfield, Conn., provides medical benefits packages through managed care, dental coverage, behavioral health coverage and pharmacy benefits. These products are marketed in all 50 states, the District of Columbia and Puerto Rico. HealthCare customers range from the largest multinational corporations to small businesses, unions and government-sponsored programs. The managed care division delivers medical HMOs through individual practice association models under contracts with independent physicians and hospitals.
Rooted in the republic

A group of citizens formed the Insurance Company of North America (INA) in Philadelphia in 1792, the first marine insurance company in the fledgling republic. Its first two policies covered the hull and cargo of a local ship bound for Londonderry, Ireland. Two years later, INA issued its first life policy, insuring a sea captain against death during a voyage, a policy that included a specific benefit should he be captured by the scurvy pirates of the Barbary Coast. In 1808, INA expanded outside of Philadelphia and reached the Pacific Coast in 1849, when it appointed an agent in California to remit premiums back to Philadelphia in gold dust. Meanwhile, north of INAs home office, Connecticut governor William A. Buckingham
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CIGNA Corporation
authorized a special act of the General Assembly incorporating the Connecticut General Life Insurance Company (CG). During the late-1800s, INA began overseas expansion, appointing agents in London, Vienna and Buenos Aires. In 1897, it became the first American company to write insurance in China, appointing the Yang-tsze Insurance Association, Ltd. as its Shanghai agent. CG began offering individual accident and health insurance (1912), its first group life insurance contract (1913), group accident and sickness coverage (1919) and insurance covering airline passengers (1926) in the early part of the 20th century. In 1946, INA established an international department to manage underwriting and services in Europe, Asia, Africa, the Near East, and Central and South America, while CG was introducing medical catastrophe insurance (1950), organized its first separate account for pension customers looking to invest funds into equities (1961) and introduced group dental insurance (1964). By 1978, INA had acquired HMO International, then the largest publicly-owned health maintenance organization in the U.S. The big moment finally arrived in 1981, when CG and INA announced plans to merge, which they did in a deal completed in 1982. The new company chose the name CIGNA, a combination of its predecessors initials. CIGNA had a big year in 1984, when it acquired AFIA, an international insurance underwriting association with customers in more than 100 countries, and Dental Health, Inc., enabling it to become the first national carrier in the prepaid dental-health market. CIGNA picked up the MCC Companies in 1989, a national leader in managed mental-health care and substance-abuse programs (rebranded as CIGNA Behavioral Health, Inc. in 1999). The acquisition of EQUICOR, the countrys sixth-largest provider of employee benefits, in 1990 bolstered CIGNAs market share in that field. CIGNA began divesting its personal property/casualty businesses in favor of small and midsized commercial clients in the early 1990s as well as leaving such sectors as airline insurance and safety bonds. In the late 1990s, CIGNA continued nurturing its health care segment, gaining managed care provider Healthsource and extending group benefits to India, Brazil and Poland. 2002 saw CIGNA gain approval to enter the Chinese life insurance market, the first established since China joined the WTO.
Marco? Polo!
In January 2006, CIGNA CEO H. Edward Hanway received the distinguished Marco Polo Award, the highest tribute paid by China to a foreign business leader. Hanway
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CIGNA Corporation
joined an exclusive club of former recipients that includes President George H.W. Bush, among other esteemed global business and industry leaders. CIGNA was an early advocate for Chinas admission into the WTO and became the first American provider to institute a joint venture life insurance in China following the countrys WTO entry. CIGNAs joint venture, CIGNA & CMC Life Insurance Co. Ltd., is the clear leader in the direct allocation of protection-oriented life, accident and supplemental health insurance. Fortune magazine and Watson Wyatt named the joint venture as one of the top 10 companies to work for in China in 2005. CIGNA maintains considerable operations in Beijing and throughout Guandong province, and added a Shanghai entity in late 2005. CIGNA opened a new branch office in Shanghai in January 2006 with plans to expand to two more provinces in that same year. CIGNAs relations with China stretch more than two centuries. Its predecessor, INA, insured cargo ships between Philadelphia and what was then Canton in 1798.
Shaking up the top

In late July 2005, CIGNA HealthCare named David Cordani, an up-and-coming 39year-old senior VP, as its president. Cordani, who participates in Ironman triathlons in his spare time, appeared to be a walking advertisement for the health vigor CIGNA seeks to promote for its members and its business model. Cordani, who holds an MBA in marketing, was seen as a fresh perspective to CIGNAs membership woes. The company, which boasted 13.4 million members at its peak at the end of 2001, had lost nearly 50 percent of its health plan membership by the time of his appointment. Cordani suggested that problems with a switch to new IT hurt CIGNAs service and scared away business from agents, brokers and consultants. The company also strained with businesses it underpriced while medical costs sped ahead of its price increases, devouring all of its profits and leading to considerable layoffs. Cordani expected enrollment to begin growing again in 2006 by keeping pace with the consumerism trend emerging in the industry. Consumerism refers to sales of plans directed by the consumer and offering services and tools to help members, employers and physicians improve care offerings. The plans usually involve employer-funded accounts to cover medical bills until a high deductible is met. Cordani also noted that CIGNA has invested in staff to administer care and instruct members, employing 3,000 cliniciansmainly nurses and doctorsmore per member than any of its major rivals.
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CIGNA Corporation
Investor wariness
CIGNAs profit forecast for 2006 sent its stock price sliding 6 percent in November 2005, even though the company bested third-quarter earnings estimates. CIGNA reported a 16 percent drop in third-quarter net income, to $259 million ($2 a share) from a year prior, down from $308 million the year before. However, investors were most concerned about the companys forecast of between $900 million to $960 million ($6.85 to $7.30 a share) of operating income for 2006. The Street consensus had been $8.04 a share. The company also said that its workforce had decreased by 150 employees in Connecticut during the third quarter of 2005 from layoffs and attrition. CIGNA had cut over 450 employees in Connecticut since the end of 2004. The companys third quarter release explained that the company was substantially through with the 1,700 job cuts planned for 2005.
Web triumph
In October 2005, the Web Marketing Association awarded a Standard of Excellence WebAward to myCIGNAplans.com, the online pre-enrollment decision support web site for CIGNA Choice Fund consumer-directed health plans. The site allows consumers to make their own decisions during their employers open enrollment period, as well as to calculate benefits costs across numerous CIGNA HealthCare plans, review providers and evaluate benefit program features, and map out a variety of health scenarios to find out how health events could impact their medical and pharmacy costs. The myCIGNAplans.com site earned its WebAward for Outstanding Achievement in Website Development based on a review of features planned to give customers a personalized side-by-side assessment of benefit features and costs of available CIGNA HealthCare plans.
Sharing history
In October 2005, CIGNA donated some 4,000 pieces of history and art to the Smithsonian museum, the continuation of a program that has seen the company sell or donate about $10.5 million of its collected memorabilia to various individuals and organizations. The collection sent to the Smithsonian dates from the 1750s to the mid-1900s. The artifacts, mainly firefighting and maritime-related, included horsedrawn steam engines, hand pumpers and fire buckets. The company decided in early 2004 that it could gain by selling paintings and other artwork it had collected since the early 1800s, with plans to sell around 230 artworks and give away 5,000 items by
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CIGNA Corporation
the end of 2006. CIGNA has proven a savvy art investor. The most expensive painting yet sold, Marsden Hartleys Winding Road, acquired for $55,000 in 1981, sold for more than $900,000 at Sothebys. The most valuable donation thus far was the Joan Miro sculpture Oiseau Solaire, bought for $225,000 in 1983, was appraised at $1.75 million at the time of donation. Thus far, CIGNA has decided to hang on to its collection of contemporary art.
GETTING HIRED
Joining up
CIGNAs web site offers a database of open job positions, and also allows candidates to submit an application without applying for a specific opening. CIGNA offers many varied career paths for people interested in the employee-benefits industry, including accounting and finance, administrative, claims and customer service, health care, human resources, information systems, legal, sales and marketing and underwriting. More information about how to apply to specific CIGNA positions can be found at cigna.com/general/careers.
Emphasizing diversity
CIGNA has received plaudits for its commitment to diversity. In May 2005, the company received the Anti-Defamation Leagues 2005 Greater Hartford Workplace Diversity Award, awarded by a group that opposes discrimination against Jews and other minority groups. The chairwomen of the Anti-Defamation League lauded CIGNAs goals for managers, which hold them responsible for diversity, and that the companys success in increasing numbers and seniority of minority employees set it apart from its peers. CIGNA says that its enthusiasm for diversity is as idealistic as it is sensible. After all, the company notes, the major buyers of its products are women.
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Conseco, Inc.
11825 N. Pennsylvania Street Carmel, IN 46032 Phone: (317) 817-6100 Fax: (317) 817-2847 www.conseco.com
THE STATS
Employer Type: Public Company Stock Symbol: CNO Stock Exchange: NYSE Chairman: R. Glenn Hilliard President, Director and CEO: William S. (Bill) Kirsch 2005 Employees: 4,000 2005 Revenue ($mil.): $4,326.5
LOCATIONS
Carmel, IN (HQ) Chicago, IL Fort Lauderdale, FL Philadelphia, PA
KEY COMPETITORS
American National Insurance MetLife Northwestern Mutual
EMPLOYMENT CONTACT
www.conseco.com/conseco/self service/about/careers.jhtml?about=3
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Conseco, Inc.
THE SCOOP
The big picture

Conseco, Inc. is a holding company based in Carmel, Ind., owning and managing a group of insurance providers that develop, market and administer annuity, supplemental health insurance, individual life insurance and other insurance products. The company holds licenses to sell insurance policies in all 50 states and the District of Columbia. Conseco focuses on the senior and lower-middle-income markets, as it sees these as appealing and high growth areas. The company uses three delivery channels: career agents, professional independent producers and direct marketing. Conseco, a Fortune 500 company, covers nearly five million customers and has over $4 billion in annual revenue. Today, Conseco operates mainly through Bankers Life, an entity which markets and supplies Medicare supplements, life and long-term care insurance and annuities, and Conseco Insurance Group, which provides specific disease insurance in addition to Medicare supplement and certain life insurance and annuities.
Growth-by-acquisition, decline-by-bankruptcy
Conseco traces its roots to Security National, an Indiana-based insurance company formed in 1979 by Steve Hilbert, a former encyclopedia salesman and Aetna executive. Hilbert spurned the major insurance industry leaders, believing them to be bloated and inefficient. He pursued a growth-by-acquisition strategy, beginning with the acquisition of Executive Income Life Insurance (re-dubbed Security National Life Insurance) in 1982. The following year, it bought Consolidated National Life Insurance and renamed the group Conseco. In 1985 the company went public, using the gains to fund a spending spree that included Lincoln American Life Insurance, Western National Life Insurance and National Fidelity Insurance. The company formed Conseco Capital Partners in 1990 so that it could invest in new companies without burdening its parent entity with debt. This firm aided the acquisitions of Great American Reserve (1990), Beneficial Standard Life (1991) and Bankers Life Insurance (1992), and helped to form Private Capital Group to invest in noninsurance companies. In 1996 and 1997 Conseco acquired eight life, health, property/casualty and specialty insurance companies, and in 1998, it bought Green Tree Financial, the purchase that would eventually send it to bankruptcy four years
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Conseco, Inc.
later. Financial problems led to CEO Gary Wendts resignation in 2002, the same year that the NYSE suspended trading Conseco stock, moving it to OTC.
Recovery
One year after emerging from bankruptcy in September 2003 and issuing new stock for the new Conseco, Executive Chairman R. Glenn Hilliard dismissed speculation that the company was on the auction block during Consecos first shareholders meeting since its reemergence. At the time of the August 2004 meeting, Consecos newly issued stock had dropped 17 percent since its release. The meeting took place during an anxious time for reasons aside from auction scuttlebutt. William S. Kirsch, a Chicago attorney, was named CEO just before the meeting.
After reassuring investors that the company was not to be sold, Kirsch outlined the companys challenges and priorities. The first priority was to achieve an A (excellent) rating on its financial strength from A.M Best, the authoritative credit agency for insurance firms. At the time of the meeting, Conseco stood at B++, two steps away. To reach the goal, Conseco planned to cut $20 million in costs by the end of 2004, a goal towards which progress had already been made through layoffs and simplifying upwards of 30 computer systems that were never assimilated during the frantic acquisition period of the 1990s. Kirsch explained that the company sought to fortify relations with the agents selling its insurance products, planned to launch 12 new insurance products and that its Bankers Life & Casualty unit would be opening 25 new offices by early 2006.
Selling real estate to sell insurance

In August 2005, Conseco put four of the buildings on its campus in Carmel, Ind., on the market. Company officials expected the sale of 220,000 square feet of office space to save around $2 million annually in upkeep and tax costs. Conseco employees who survived the bankruptcy era were especially pleased that Building A was on the docket, a structure they saw as symbolic of the excesses of the old regime and the labyrinthine road to bankruptcy reorganization under Wendt. The 10 buildings on the 146-acre Carmel campus house 2,350 employees; the company has shed 1,300 workers from the estate since 2000. Remaining employees would move to one of the remaining six buildings.
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Conseco, Inc.
Puffing up Dubes
In June 2005, Conseco Inc. named 38-year insurance vet Michael J. Dubes president of its struggling Conseco Insurance Group. Dubes was promoted to increase sales, coordinate new products and bring in more independent agents. Conseco had strained to bring in money after losing products and a third of its independent insurers. Conseco recruited Dubes from outside the company, though he had been a consultant for Conseco since 2004 while serving as senior VP of wealth management practices at the Minnesota firm KNW Group LLC.
Giving the community something to cheer about

Conseco maintains a relationship with a number of local and national charity organizations, including the American Red Cross of Greater Indianapolis, the Little Red Door Cancer Agency and the Julian Center, a counseling program for victims of domestic violence, sexual assault and survivors of childhood sexual abuse. Conseco takes special care to participate in senior charities such as the Alzheimers Association, the Indianapolis Senior Citizens Center, the International Longevity Center, Meals on Wheels, Prime Life Enrichment Inc. and the Visiting Nurse Service. Conseco is well known nationally as the namesake for Indianapolis Conseco Fieldhouse, one of the most critically acclaimed sports venues in the country. Conseco Fieldhouse is the home court of the NBAs Indiana Pacers and the Indiana Fever of the WNBA. Conseco contributes $50 to a charitable fund for every threepointer sunk by the Pacers during the season, selecting 10 community organizations before the season to participate in the program. Each group also gets 20 tickets for two Pacers home games.
GETTING HIRED
The careers section of the companys corporate web site (https://www.conseco.com/ conseco/selfservice/about/careers.jhtml?about=3) offers a searchable database of job offerings in a number of different divisions, including actuarial, communication, executive, finance/accounting, human resources, information technology, insurance operations, legal/compliance, sales/marketing and underwriting. Interested job seekers can submit their resumes online and create a profile accessed by Conseco human resources staffers.
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Equitable Life Assurance Society, The

Warwick Court Paternoster Square London EC4M 7DX United Kingdom Phone: +44 (0)20 7489-6400 Fax: +44 (0)20 7489-6404 www.equitable.co.uk
THE STATS
Employer Type: Private Company (Mutual Company) Chairman: Vanni Treves CEO: Charles Thomson 2005 Employees: 23
LOCATIONS
KEY COMPETITORS
Royal London Mutual Standard Life United Assurance
London (HQ) Buckinghamshire Bucks
EMPLOYMENT CONTACT
Mail resume to: The Equitable Life Assurance Society Warwick Court Paternoster Square London EC4M 7DX United Kingdom
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THE SCOOP
More than three centuries of equitability

The Equitable Life Assurance Society, founded in 1762, seems to be going through a rough patch. Equitable, which offers life insurance, annuities, pensions and permanent health insurance to over 650,000 customers in the U.K., Ireland and Germany, was told to stop writing new business in 2000 by the House of Lords, which said that it had underpaid around 90,000 guaranteed annuity policyholders. Equitable says it hopes to muddle through with a policyholder-approved compromise system, but said it might have to divest its business in the future. The company recently moved its headquarters to a location in London and has sold collectibles accrued over its lengthy history, including antiques, silverware and a portrait of a company founder dating back to the 18th century.
A storied history
Equitable didnt actually start business until 1762, but owes its existence to James Dodson, who developed the first scientific tables for calculating mortality probability in 1750. Though Dodson gave way to the Grim Reaper before Equitable was founded (wonder if he saw that coming?), his ideas forged the foundation of modern life assurance. By 1799 Equitable held 5,000 policies in force for sums around 4 million Pounds Sterling. Ten years later, twice that many policies were in place, with prominent policyholders of the 19th century including Samuel Taylor Coleridge, William Wilberforce and Sir Walter Scott. Equitables business began booming in the late 19th century and it started selling pensions in 1913. The firm continued its reputation for innovative products when it launched the Retirement Annuity, a flexible pension account for self-employed individuals, in 1957. During the 1980s and 1990s Equitable continued to grow, thanks to the emergence of personal pension and additional voluntary contribution plans, while sustaining its record of operation with some of the lowest expense ratios in the industry.
... with some turbulence along the way

Beginning in the late 1980s, Equitable Life had promised its policyholders more money than it actually had in its coffers. By 2000, the publicly declared values of its customers policies had reached 3 billion Pounds Sterling more than actual assets
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held by the company, right before the firm was handed a bill of more than 1.5 billion Pounds Sterling by the House of Lords to pay the annuities in their entirety. The practice of regularly allocating to policyholders more than it held in reality led to near financial ruin. Over the short term, that policy might have worked withprofits funds, where life insurers hold money in reserve during years of growth in stock market investment, and allowing them to make payments during poor years (a process known as smoothing). Unfortunately, as an investigation into the companys practices revealed, Equitables appointed actuary at the time had been smoothing across the peaks, which is not a reliable approach. In place of cutting the stated value of policyholders, Equitable used a range of devices that led to a growing gap between what it said and what it had.
One device, utilized by all life insurers to varying degrees, stopped allotting bonuses to customers policies in the form of reversionary bonuses, which are guaranteed and need to be counted on company accounts as a liability. Instead, an everincreasing large chunk of the bonuses appeared as terminal or final bonuses. Equitable never counted these final bonuses as a liability.
A kings Ranson
Roy Ranson, Equitables CEO from 1992 to 1997, explained that the companys controversial policy, dubbed maximum distribution, was based on a belief that the firms commitment was to its current policyholders, not future generations. With maximum money distributed to policyholders in successful times, little was leftover when times were hard. Instead of cutting back in bad years, Equitable (and Ranson) formulated Equitable Lifes policy on guaranteed annuities, ruled illegal by the House of Lords in 2000, back to 1983. The board didnt find out about this until 1993; policyholders remained in the dark until 1995. Ranson eventually operated a huge with-profits fund worth 30 billion Pounds Sterling without significant oversight by colleagues, the board, the auditor or the regulator. In July 2000, the board put the company up for sale, though every potential purchaser pulled out. December of the same year saw the company close to new business, Chris Headdon replaced Alan Nash as CEO, and the entire board announced that it would resign as soon as replacements could be found. The near-collapse of Britains oldest mutual prompted changes to life assurance regulation and heightened scrutiny on the actuarial profession across the country.
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Picking up the pieces

The multibillion pound litigation brought by Equitable against its former auditors and directors finally came to a close in December 2005. Though unlike some of the more notorious accounting and financial crises in recent U.S. history, the Equitable matter was remarkable because it was not based on deceit, corruption or significant personal greed. Instead, misguided convictions, complaisance, dubious advice and insufficient oversight all contributed to the debacle. In April 2002, Equitable started to strike back, launching legal action against its thenauditors Ernst & Young for up to 2.6 billion Pounds Sterling, and against 15 former directors for up to 3.3 billion Pounds Sterling. For the first year of litigation, the former directors were unclear whether their litigation fees would be paid under the firms policy (eventually, they received a pool of 5 million Pounds Sterling after arbitration in 2003). By August 2005, Equitables position in each trial appeared grim. The firm faxed a letter to all the defendants offering a drop hands agreement under which each party would bear its own legal costs and conclude the proceedings. The following month, E&Y agreed to such a deal, though the former directors stayed tough, and Equitable eventually agreed to pay their legal costs in full. Industry observers saw the close of litigation as a further move towards eventually breaking up the society and giving up its 250-year-old name. In January 2006, Mairead McGuinness, an Irish center-right MEP, was appointed chairman of a European parliament committee of inquiry into the collapse of Equitable Life. The 22-person committee will investigate the governments role in the collapse, which ultimately left more than a million policyholders suffering losses to their pensions and investments.
GETTING HIRED
Equitable doesnt list job openings for any of its locations on its site (in fact, it doesnt even have a careers section). Those interested in working for the company should send a query letter to its headquarters in London for more information.
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Erie Indemnity Company

100 Erie Insurance Place Erie, PA 16530 Phone: (814) 870-2000 Fax: (814) 870-3126 www.erie-insurance.com
THE STATS
Employer Type: Public Company Stock Symbol: ERIE Stock Exchange: NASDAQ Chairman: F. William Hirt President and CEO: Jeffrey A. Ludrof 2005 Employees: 4,600 2005 Revenue ($mil.): $1,125
LOCATIONS
Erie, PA (HQ) Allentown, PA Canton, OH Charlotte, NC Columbus, OH Fort Wayne, IN Hagerstown, MD Harrisburg, PA Indianapolis, IN Johnstown, PA Knoxville, TN Murrysville, PA Parkersburg, WV Peoria, IL Philadelphia, PA Raleigh, NC Richmond, VA Roanoke, VA Rochester, NY Silver Spring, MD Warrendale, PA Waukesha, WI Waynesboro, VA
KEY COMPETITORS
Allstate Nationwide State Farm
EMPLOYMENT CONTACT
www.erieinsurance.com/Careers
DEPARTMENTS
Erie Family Life Insurance Company Erie Indemnity Company
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THE SCOOP
Feeling Erie
Part law firm and part insurance company, the Erie, Pennsylvania-based Erie Indemnity Company (Erie) is an attorney-in-fact manager for the Erie Insurance Group. The Group is represented in 11 midwestern, mid-Atlantic and southeastern states and the District of Columbia. Erie, which provides auto, home, business and life insurance with over 7,400 independent agents in more than 1,700 independent insurance agencies, is rated A+ by A.M. Best and was also ranked at 421 on the Fortune 500 in 2006. The company is staffed by over 4,600 employees working in its home office in Erie, Pennsylvania, and its 23 field offices nationwide.
Survived the Depression

In 1925, the Pennsylvania Insurance Department licensed to the Erie Insurance Exchange. After three years in business, Erie Insurance made its first expansion, opening an office in Pittsburgh. The company survived the Great Depression, greatly benefiting from the collapse of its chief competitor, the Pennsylvania Indemnity Company, in 1938. The company added fire insurance and personal liability in the 1940s, reaching $1 million in annual premiums in 1946 and doubling that within the next two years. From 1945 to 1955, the companys net premiums went from $755,080 to $7,729,114. The firm added a new member to its family in 1967 with the Erie Family Life Insurance Company. By the time of its 50th anniversary in 1975, Erie ended the year with $108.4 million in net premiums, $10 million in dividends to over 800,000 policyholders. Erie Insurance handled a number of natural disasters in its home state, with major ones including 1972s Hurricane Agnes and the Albion tornado in 1985, the latter of which saw Erie Insurance pay over $20 million in claims. The company went public in 1993 after almost 70 years in existence. Current CEO and President Jeffrey Ludrof took the reins in 2002, and one year later the company debuted on the Fortune 500 list.
Student drivers wanted

The company takes an active interest in safe driving standards. Erie Insurances Lookin Out program, started in 2001, focuses on teaching teenage drivers safe driving skills. Erie gives participating high schools grants that fund activities based
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on safe driving awareness. The schools get students involved in the program by administering the funds through student-based committees. The kids also can take part in a public service announcement (PSA) contest. The winning PSA is produced professionally by the company and is then aired in all of Erie Insurances territories.
GETTING HIRED
Next stop, Erie

Erie Insurance says it needs qualified, dedicated employees from many business disciplines to keep the multi-billion dollar operation growing and running smoothly. Those interested in becoming an agent are encouraged to contact the manager of the Erie Insurance branch closest to their place of interest. Erie Insurance also offers insurance-related positions in claims, customer service, underwriting, actuarial, rate analysis, data compilation, loss control, sales management and product development. Non-insurance related categories include IT, instructional design, clerical and administrative work, accounting and finance, human resources, communication and data entry. Current job openings are listed on the careers section of the Erie Insurance web site at www.erieinsurance.com/Careers.
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GEICO
1 GEICO Plaza Washington, DC 20076 Phone: (301) 986-3000 HR Toll Free: (800) 824-5404 Fax: (301) 986-3092 www.geico.com
THE STATS
Employer Type: Subsidiary of Berkshire Hathaway Chairman and CEO: Olza M. (Tony) Nicely 2005 Employees: 20,853 2005 Revenue ($mil.): $1,237
LOCATIONS
Washington, DC (HQ) Buffalo, NY Chevy Chase, MD Coralville, IA Dallas, TX Fredericksburg, VA Honolulu, HI Lakeland, FL Macon, GA San Diego, CA Tucson, AZ Virginia Beach, VA Woodbury, NY
KEY COMPETITORS
Allstate Progressive State Farm
EMPLOYMENT CONTACT
www.geico.com/careers/jobs www.geico.com/oncampus (College recruiting center) Human Resources Phone: (800) 8245404
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GEICO
THE SCOOP
Insurance for all

Since 1936, GEICO has provided auto insurance to preferred low-risk as well as nonstandard (high-risk) drivers. Besides auto coverage, the firm also offers motorcycle insurance and emergency road service. GEICO boasts 7 million auto policy holders and counting, and insures over 10 million vehicles, the fourth largest private-passenger auto insurer in the nation. Overall, GEICO operates 12 major offices across the U.S., and employs roughly 21,000 associates. The company became a wholly-owned subsidiary of Berkshire Hathaway in 1996.
Nicely done
Leo and Lillian Goodwin originally founded GEICO (Government Employees Insurance Company) to offer insurance policies to federal employees and the top three grades of non-commissioned military officers. By the end of its first year in operation, GEICO had written 3,700 policies and employed 12 workers. During the 1960s, the firm doubled its net earnings, opened more offices and eclipsed the 1 million mark for policyholders. The next decade saw the death of both Leo and Lillian. At one point, losses due to over-eager expansion plans threatened the company. The firm bounced back in the 1980s, and GEICO introduced its 24-hour, 365-day telephone service for claims, sales and service as part of a plan to better serve its customers. In 1993, current president and CEO Tony Nicely was named CEO, and he focused on making GEICO a household name. GEICOs new four-company strategy came into being, as did an increased advertising budget, generating higher visibility from coast to coast.
Community ties
GEICO gets involved in community programs to advocate safe driving and help those in need. Each year the company welcomes entries into its annual National Safety Belt Poster Contest, open to kids aged six to 15, who design posters advertising the importance of wearing seat belts. In 2006, the United Way of Central Georgia named GEICO as its largest contributor. Other programs the company has worked with include Big Brothers Big Sisters and Drivers Ed Direct. The company also headed relief efforts in areas devasted by Hurricane Katrina in 2005.
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GEICO
GETTING HIRED
Switching to GEICO
GEICO lists job openings on its career web site, www.geico.com/careers/jobs, and also provides an online job application form for prospective employees to fill out. The company has been hailed by The Princeton Review as one of the nations best companies for college grads to launch their careers with the best entry-level jobs. In addition, CollegeGrad.com and The Black Collegian both named GEICO a Top Employer in 2005. The companys online college recruiting center is featured at www.geico.com/oncampus, while its recruitment list for colleges can be found at www.geico.com/oncampus/schools.
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Guardian Life Insurance Company of America, The

7 Hanover Square New York, NY 10004 Phone: (212) 598-8000 Fax: (212) 919-2170 www.guardianlife.com
THE STATS
Employer Type: Private Company President, Director and CEO: Dennis J. Manning 2004 Employees: 5,000 2004 Revenue ($mil): $7,021
LOCATIONS
New York, NY (HQ) Appleton, WI Bethlehem, PA Bridgewater, MA Pittsfield, MA Spokane, WA 90 agencies across the country.
KEY COMPETITORS
CIGNA Oxford Health WellPoint
EMPLOYMENT CONTACT
www4.glic.com/glife/JobPostingServlet
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THE SCOOP
Guardians fortunes
The Guardian Life Insurance Company of America is a mutual company owned by its policyholders and based in New York City. The company offers life insurance, disability income insurance and retirement programs. Guardians employee health indemnity plans offer HMO, PPO, dental and vision plans, as well as disability plans. With 5,500 employees and nearly 2,900 financial representatives in 90 agencies, today Guardian is the fourth largest mutual life insurance company in the U.S. Guardian is on the Fortune 300; the company and its subsidiaries service almost three million people with life and disability income insurance, retirement services and investment products. Guardian also supplies employee benefits programs to five million participants, including life, health and dental insurance, in addition to qualified pension plans.
Death sentence to life insurance

In 1850, Hugo Wesendonck came to the United States from Germany, fleeing a death sentence for his part in a failed 1848 revolution. By 1860, Wesendock and other German expatriates launched an insurance company for German-Americans in New York City; Germania Life Insurance began as a stock mutual company, paying dividends to shareholders and policy owners. Following the Civil War, while many insurers failed from high costs, Germania expanded across the U.S. and reached as far as South America. In 1868, Germania became the first American insurance company to open an agency in Europe. By 1910, 46 percent of sales came in from Europe until World War I stopped business there. From the 1890s to World War I, German immigration slowed and Germania saw its market share drop from ninth in 1880 to 21st in 1910. Due to anti-German attitudes during the war, the company changed its name to The Guardian Life Insurance Company of America in 1917. After WWI, the company began scaling back its business in Germany, which continued until 1952. Guardian converted from a mixed stock and mutual company to a wholly mutual company in 1925. In the post-World War II era, Guardian offered non-cancelable medical insurance in 1955 and group insurance in 1957. By 1969, it had formed Guardian Investor Services to provide mutual funds. In 1971, the company founded Guardian Insurance & Annuity to sell variable contracts, and in 1989 Guardian Asset Management was formed to manage pension funds. As indemnity health costs
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escalated in the early 1990s, Guardian began to offer managed care through membership in Private Health Care Systems, a group of commercial insurance carriers supplying managed health care products and servicesthis enabled Guardian to enter the HMO and PPO market. In 1999, Guardian began a broker dealer subsidiary and got a thrift license to help create a trust business.
Corporate make up
Guardian is divided into five general business segments: Individual Life Insurance and Business Protection; Disability Income Insurance and Specialty Life Products; Employee Benefits; Guardian Trust, FSB; and annuities and investment (itself broken down into Guardian Investor Services LLC, The Guardian Insurance & Annuity Company, Inc. and Park Avenue Securities LLC).
The Individual Markets goal, according to the company, is to become the Life Insurance Company of choice, reaching 40 million Americans by 2010. The product portfolio includes traditional life insurance products (WholeSpan, LifeSpan, Survivorship Whole Life, Pension Trust and Life Insurance) and variable life insurance products (Park Avenue Variable Universal Life and Park Avenue Life). Both sets are sold through Guardians agency distribution system, made up of 90 agencies and nearly 2,900 financial representatives. The Disability Income Insurance is marketed through Guardians Berkshire Life subsidiary. Berkshire offers standard of living protection, with comprehensive lines of personal and disability income (DI) insurance, mainly for professionals, executives and business owners. Berkshire offers products such as ProVider Plus (own occupation, non-cancelable and guaranteed renewable individual policies); Professional Overhead Expense Insurance; Business Overhead Expense Insurance; Disability Buy-Out Insurance; and Level Premium Term Life Insurance. The Employee Benefits product portfolio includes DentalGuard, AbilityGuard (longand short-term disability), FlexPlan (allowing employees to personalize their benefits coverage); life insurance (basic term, dependent and universal life); medical coverage (PPO, POS, HMO or any combination); prescription drug benefits; LabOne Inc.s national lab card program (outpatient lab tests with no out-of-pocket costs); and VisionGuard. The Guardian Trust Company, FSB (GTC), a wholly-owned Guardian subsidiary, is a federally chartered savings bank regulated by the Federal Office of Thrift Supervision (a division of the U.S. Department of the Treasury). GTC is on record with the Securities and Exchange Commission as a Registered Investment Advisor.
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Some of the more popular accounts it offers include revocable living trusts, charitable remainder trusts, charitable lead trusts, credit shelter trusts, qualified personal residence trusts, special needs trusts, education trusts, blind trusts, generation skipping trusts and IRA rollover accounts. Guardians Annuities and Investments Department is made up of three separate entities. Guardian Investor Services LLC (GIS) is a Delaware limited liability company organized as a successor to Guardian Investor Services Corporation. The Guardian Insurance & Annuity Company, Inc. (GIAC) was a pioneer developer of the multi-manager variable annuity contract; both GIS and GIAC are wholly-owned subsidiaries of Guardian. GIACs industry ratings include an A+ from A.M. Best, a very strong AA from Fitch, an excellent Aa2 from Moodys and a very strong AA+ from S&P. Park Avenue Securities LLC (PAS) is the retail broker-detail for Guardian, created exclusively for the parent companys financial representatives to serve the investment demands of their clients.
Giving back to the community

In December 2005, Guardian began its 2006 Girls Going Places Entrepreneurship Award Program, a national competition that recognizes and rewards teenage girls for displaying extraordinary entrepreneurial spirit. Each year, the program awards 15 girls with a total of $30,000 to be put towards education finance and entrepreneurial efforts. Prizes awarded come in the amounts of $10,000, $5,000, $3,000; and there are 12 $1,000 prizes. Adults nominate deserving girls in a 750- to 1,000-word essay. Also that December, Guardian announced that it had completed funding for the Henry A. Deppe Chair in Pensions and Retirement Planning at American College, the leading financial services educator in the U.S. The donation fulfilled the endowment fund founded at the college by associates and colleagues of Henry A. Deppe, a former Guardian general agent. The Deppe Chair brings additional academic and practiceoriented expertise to the school. Since 1989, the Henry A. Deppe Lecture Series has focused on pensions and retirement security issues.
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GETTING HIRED
Next stop, Erie

The careers section of Guardians corporate web site allows applicants to search corporate openings by job title, location and business organization. Job titles can include accounting, actuarial, administration, communications, equities, finance, group insurance products, human resources, information systems, marketing, Park Avenue securities, retirement services, training, trust company, underwriter and warehouse. Openings are listed at www4.glic.com/glife/JobPostingServlet. Those interested in a field sales position are encouraged to apply online at www.guardianlife.com/careers/field_representatives/contact_us.html.
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The Hartford Financial Services Group, Inc.

Hartford Plaza 690 Asylum Avenue Hartford, CT 06115 Phone: (860) 547-5000 Fax: (860) 547-2680 www.thehartford.com
THE STATS
Employer Type: Public Company Stock Symbol: HIG Stock Exchange: NYSE President, Chairman and CEO: Ramani Ayer 2005 Employees: 30,000 2005 Revenue ($mil.): $27,100
LOCATIONS
Hartford, CT (HQ) Locations in all 50 states, Canada, Brazil, Ireland, Japan, the U.K. and Puerto Rico.
KEY COMPETITORS
CNA Financial Lincoln Financial Group Oxford Health Plans
EMPLOYMENT CONTACT
thehartford.hire.com/joblist.html
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THE SCOOP
Old New England

The Hartford Financial Services Group, Inc. is one of Americas largest insurance and investment companies in America, with international offices in Japan, Brazil, Ireland and England. Hartford provides investment products, including annuities, mutual funds, college savings plans, in addition to life insurance, group and employee benefits, automobile and homeowners insurance and business insurance. The company serves millions of customers around the globe, including individuals, institutions and businesses, through independent agents and brokers, financial institutions and the Web. Some 11,000 independent agencies and over 100,000 registered broker/dealers sell Hartfords products. With 30,000 employees and $27.1 billion in 2005 revenue, Hartford landed at number 78 on the 2006 Fortune 100 list.
Insurance isnt hard for Hartford

In 1810, a group of Connecticut businessmen, led by Walter Mitchell and Henry Terry, launched the Hartford Fire Insurance Co. to fight the most insidious threat in early America: the chance of fire wiping out personal property. Hartford Fire faced its first major challenge in 1835, when a massive fire wiped out much of Manhattans business district in New York City, with costs estimated from $15 million to $28 million. By the 1860s, prominent Americans, such as Abraham Lincoln and Robert E. Lee, invested in Hartford policies. Hartford thrived in the years following the Civil War, flourishing until 1871, when the Chicago Fire killed 250 people and destroyed five square miles with $200 million in property lost. Though many insurers were forced to renege on their policies, Hartford paid all claims in full. Notwithstanding the goodwill it earned from the Chicago Fire, the San Francisco Earthquake of 1906 leveled hundreds of city blocks, killed 700 people and ignited scores of fires. Damages reached $400 million. Despite suffering larger losses than any other insurer, Hartford settled all its claims rapidly. Workmans Comp and the popularity of the automobile created new opportunities for the company, which moved into its current headquarters on Asylum Street in Hartford in 1921. In 1959, Hartford Fire bought Columbian National Life, a Boston-based insurance company. The two firms became Hartford Life Insurance Company the following year with a three-pronged marketing strategy made up of fire, property and casualty,
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and life insurance. In June 1970, ITT acquired Hartford for $1.4 billion, what was then the largest takeover in American history. By December 1995, the company again became an independent entity. In hopes of building its reinsurance operation, Hartford bought Orion Capital in 1996 and Vesta Fire Insurance in 1999. In 2000, Hartford bought back the portion of Hartford Life it spun off in 1997 and also purchased the financial products, and excess and surplus specialty insurance lines of Reliance Group Holdings. In 2001 the company bought Fortis Financial, the American subsidiary of Belgian company Fortis, and sold Spanish subsidiary Hartford Seguros to Liberty Mutual.
Green light gets green-lit

In May 2005, rumors began to swirl about Hartfords plans to start outsourcing several information technology programs as part of a larger IT renovation, heightening fears of layoffs among employees as the company strove for enhanced speed and efficiency. Company officials stressed that they were uncertain about the impact on jobs as a result of cutbacks. Hartfords outsourcing, named Project Green Light, is one of five significant IT initiatives planned by the company in a four-year transformation intended to help the company move more rapidly with fast rollouts of new rates and products. In the past, new personal insurance product rollouts could take upwards of two years, and nine months for rates to change by territory. With greater efficiency, senior execs said, new products could be in the market in less than a year. Green Light outsourcing might include policy administration systems for personal auto and homeowners insurance, as well as specialty insurance for large commercial customers. These systems contain all recorded information about a policy, like property descriptions, coverage limits and riders.
High hopes for 2006

In December 2005, Hartford announced that it expected to raise profits and boost shareholder dividends significantly in 2006. Hartford anticipated operating earnings of $8.30 to $8.60 per share in 2006, reflective of a 9 to 18 percent increase from 2005s expected mark of $7.30 to $7.60 a share. Management also suggested that it would recommend directors approve a $500 million dividend to shareholders in 2006, some 37 percent more than the $350 million in 2005. Sales of individual variable annuities in the U.S., a principal product for Hartford, are estimated at $10 to $11 billion. However, at the same time, customers are expected to take $2.7 to $3.7 billion more out of the companys variable annuities than they
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put in, a net outflow of money. The company says its positioned itself well financially for potential catastrophes in 2006. Hartford plans to continue to bolster its retirement solutions for the affluent Baby Boomers in and approaching their retirement years by focusing on this market to understand its unique and changing needs. The company also intends to focus on its competitive strength in property and casualty, targeting business insurance, particularly the small commercial market. And its personal lines business will concentrate on products, distribution and technology to grow this division.
Hartfords playbook for life

In March 2005, in collaboration with the NCAA, Hartford launched a booklet for collegiate students to help them (primarily student athletes) understand the basics of financial planning and money management. The booklet, called the Playbook for Life, comes with campus presentations led by former All-American football player Allen Pinkett, now a sales representative for Hartfords individual life division. The booklet offers information on managing debt (mainly credit card), budgeting, investing, becoming a homeowner and buying insurance.
GETTING HIRED
Get your foot in the door

The careers section of Hartfords web site provides a searchable database of job opportunities, sortable by category and geographic location. The available job categories can include accounting, actuarial, administration, business analysis, claim, contracts and compliance, facilities management, finance, human resources, information technology, insurance, investment management, legal and government affairs, loss control, medical, marketing and communications, quality and process improvement, sales, service/operations, special risk services, training and underwriting. Special information for recent college graduates and current college students is also listed on the site, as well as information about varying career development and benefits.
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Hilb, Rogal & Hobbs Company

4951 Lake Brook Drive, Suite 500 Glen Allen, VA 23060 Phone: (804) 747-6500 Fax: (804) 747-6046 www.hrh.com
THE STATS
Employer Type: Public Company Stock Symbol: HRH Stock Exchange: NYSE Chairman and CEO: Martin L. (Mell) Vaughan III 2005 Employees: 3,700 2005 Revenue ($mil.): $658.012
LOCATIONS
Glen Allen, VA (HQ) London 125 locations across the U.S.
KEY COMPETITORS
Aon Brown & Brown Marsh & McLennan
EMPLOYMENT CONTACT
www.hrh.com/pages/careers/careers. asp
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THE SCOOP
HRH
Based in Glen Allen, Va., Hilb, Rogal & Hobbs Company (HRH), is the eighth largest insurance brokerage in the U.S., with more than 125 offices throughout the country. HRH is a liaison between its clients and major insurance companies that underwrite client risks in areas that include property and casualty, employee benefits and other specialized areas. Its client base spans from individual to large national accounts, dealing mainly with middle-market and major commercial and industrial clients. HRH serves clients in a wide range of industries, including advertising, aerospace, agricultural, aviation, biotechnology, chemical, contractors, construction, consumer products, education, energy, entertainment, engineering (environmental and civil), financial/banking, food/beverage, fraternal organizations, gaming, government health, health care, high tech, hospitality, management consulting, manufacturing, marine, media, mining, municipalities, nonprofit and ocean marine. The company makes the vast majority of its revenue from insurance commissions, which totaled over 90 percent of its 2005 revenue. HRH also has established relationships with several foreign insurance markets, without shared commissions, with excess and surplus lines brokers. Direct access means better revenue from products underwritten by foreign insurers and offers a wider range of products to clients.
Risky business
Risk management solutions are at the heart of HRHs business, noted in the companys four-tiered service strategy, which emphasizes specialist knowledge, unparalleled service, competitive pricing and carrier relationship. HRHs risk management and insurance services is made up of five general categories: commercial lines insurance, employee benefits, financial planning, HRH Risk Mitigation, Inc. and personal lines insurance. The commercial lines insurance segment offers services like alternative market risk financing, captives, property and casualty insurance, construction, employee benefits, executive risk solutions, loss management, surety/bonds and workers compensation. Financial planning provides life, health, disability and long-term care insurance, investments, executive benefits planning services and business insurance. HRH Risk Mitigation, Inc. provides preemployment background screening services and investigating services. Personal
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lines insurance products include specialized programs for RVs, collectibles, boats and jet skis, jewelry and fine arts and personal umbrella liability coverage.
Focusing on employee benefits

HRH is one of the fastest growing employee benefits consulting companies, providing strategic planning and program administration to help clients manage their staff with maximum efficiency and employee satisfaction. HRH gives clients a wide range of benefits consulting options, such as program design, vendor management, legal and regulatory compliance, and employee communications. The company also offers a complete suite of core, specialty and voluntary benefit plans from medical insurance and group life to retirement and executive benefits planning with insurance carriers and other brokers to find the most advantageous terms for its clients.
Kickbacks kick back

In August 2005, HRH agreed to pay $30 million to settle a suit filed by Connecticut Attorney General Richard Blumenthal, who alleged the company took kickbacks. The cash award will be split among all customers whose policies began between January 1, 2001 and December 31, 2004, and on which policies HRH earned contingent compensation. HRH did not confirm or deny wrongdoing in the settlement.
New corporate governance

In September 2005, HRH appointed several new senior executives. Michael Dinkins became executive vice president and CFO, joining HRH from medical devices manufacturer Guidant Corporation. Dinkins had previously served as CFO for NCRs Worldwide Customer Services business in Dayton, Ohio, and as chairman and CEO of Boca Raton, Florida-based firm Access Worldwide Communications, Inc. Two weeks after the Dinkins announcement, F. Michael Crowley was named president, charged with taking control of profit and loss, revenue growth, trading relationships and executive management of more than 120 HRH retail insurance locations. Crowley joined HRH as executive VP and national director for property and casualty in 2004. Before HRH, Crowley was president and COO of Savannah, Georgia-based Palmer & Cay, Inc.
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Hoping for recovery

HRHs revenue for 2005 allowed some optimism that the company would weather the kickback scandal unscathed. Revenue increased compared to the year before, accumulating to $658.01 million. Not all news was as rosy, however. The first three quarters of 2005 had seen net income decreased 44.5 percent to $36.7 million, or $1.01 per share, from $66.1 million, or $1.81 per share in the same period of 2004. The company said that the increase in revenue was due to acquisitions, offset in part by declining premium rates. HRH attributed the loss in operating net income to establishing the reserve for the previously noted Connecticut settlement, higher legal, compliance and claims expenses, investment in new sales and services staffers and doing away with national override commissions.
Extraordinary events call for extraordinary giving

The HRH Charitable Foundation, formed in April 1995 through employee donations in the wake of the Oklahoma City bombing, collected over one million dollars to support victims within the insurance and risk management industry affected by the September 11 terrorist attacks. The Foundation is entirely internal and does not accept grant requests from outside individuals or organizations. In 2003, the Foundation began a multi-year national partnership in support of Habitat for Humanity International. By the close of 2005, the Foundation had contributed $1.5 million to erect 20 HRH-sponsored homes across the U.S.
GETTING HIRED
Phase in
HRHs corporate web site provides a listing of open job positions and allows interested candidates to search by keyword or geographic location. Specific job listings include agency automation consultant, employee benefits account manager, professional liability underwriter, chief account management, benefits marketing representative, field investigator and safety specialist. Prospective employees can also send their contact information to the human resources department, indicating their desired positions. Job seekers are expected to apply online and have to follow a precise procedural list, submitting a cover letter, resume and minimum acceptable annual salary. If chosen
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for an interview, applicants fill out an employment application, including at least three professional references. The interview process is generally done in three phases. The first is with the HR recruitment team, the second includes the hiring manager and a senior manager, and other departmental employees handle the third phase. Each phase may take from one to six weeks depending on the schedules of the candidate and the hiring manager. Open positions at HRH can be found at www.hrh.com/pages/careers/careers.asp.
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John Hancock Financial Service, Inc.

John Hancock Place Boston, MA 02117 Phone: (617) 572-6000 Fax: (617) 572-9799 www.johnhancock.com
THE STATS
Employer Type: Subsidiary of Manulife Financial Corporation Chairman: Dominic DAlessandro President, Director and CEO: John D. DesPrez III 2004 Employees: 3,914 2004 Revenue ($mil.): $7,826.5
LOCATIONS
Boston, MA (HQ) Over 100 U.S. locations.
KEY COMPETITORS
Conseco Guardian Life TIAA-CREF
EMPLOYMENT CONTACT
www.johnhancock.com/about/abo_e mployment.jsp
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THE SCOOP
The dotted line

John Hancock Financial Services Inc., the Boston-based insurance giant, will celebrate its sesquicentennial in 2012, albeit as a subsidiary of Canadian conglomerate Manulife Financial Corporation, which acquired the company in 2004. Hancock offers investment products and management in addition to the insurance portfolio it is best known for, which includes variable, universal and term life. The company also offers retirement savings products that include annuities, mutual funds and long-term care insurance.
John Hancock Financial Network (JHFN), with over 100 offices across the United States, is a distribution unit of Manulife Financial Corporation, a leading Canadian financial services group with a client list in the millions covering 19 countries and territories globally. Known as Manulife Financial in Canada and most of Asia, and primarily as John Hancock in the U.S., the company maintains an extensive network of employees, agents and distribution partners. As of September 2005, Manulife Financial and its subsidiaries had some $310 billion in funds under management. The John Hancock unit, through its insurance companies, is one of the largest life insurance providers in America. Insurance products are issued by several Hancock insurance companies: John Hancock Life Insurance Company, John Hancock Variable Life Insurance Company, John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York.
Steeped in history
In 1862, a group of businessmen founded John Hancock Mutual Life Insurance Company, named after the Declaration of Independence signer with the most recognized signature. To celebrate the end of the Civil War, the company added agents in Connecticut, Illinois, Missouri and Pennsylvania in 1865. The following year found it doling out annual payments of surplus to policy members. In 1879, Hancock became the first American mutual life insurer to carry industrial insurance and it also established the practice of offering dividends and cash surrender value (payments returned to clients when a policy is cancelled) with industrial insurance. As the company matured, it added annuities in 1922, group insurance (1924), individual health insurance (1957), formed John Hancock Advisers (mutual funds, 1968) and John Hancock International Group Program (group health and life
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insurance outside the U.S., 1968). In the early 1970s, the company began offering property/casualty insurance in collaboration with Sentry Insurance. The late 1970s saw soaring interest rates, requiring members to sponge off of their policies at low rates, with the companys funds. The economic realities demanded diversification, which Hancock did by acquiring brokerages, bond specialists, equipment leasers, universal life insurance providers and credit cards. In the 1980s Hancocks market share declined and a downturn in the real estate market in the 1990s demanded the firm establish enormous reserves against defaults, leading to diminishing earnings. To survive, Hancock divested its banking, credit card and property/casualty entities. In the late 1990s, Hancock attempted to circumvent the middleman, launching a new strategy focused on direct mail, telemarketing and online sales. It sold its health care entities in 1997. In 1998, Hancock expanded its international reach (already working in Singapore and Thailand) through a partnership with Vietnam Insurance Company, and in 1999 got permission to sell life insurance in China. In 2000, the company demutualized to become John Hancock Financial Services.
Quarterly news, quarter-sized gains

John Hancock Financial Network (JHFN) reported a 26 percent increase in recruitment results for the first half of 2005 compared to the same period in 2004. JHFN also announced that productivity of newly appointed representatives was up nearly 25 percent, measured by commissions, over the same time period. The increase is attributed to putting resources into marketing, training and management development programs. More good news: JFHN life insurance sales, measured by premium, increased 23 percent over 2004, a period when individual life insurance premiums for the industry were about even.
Accolades all around

In March 2005, Hancocks Annuity division was awarded the Financial Intermediary Service Award Quality Evaluation by DALBAR, Inc. (a Boston-based financial services research and rating firm). The FISQE award recognizes firms in the annuities industry that consistently provide above-average customer service to brokers and financial advisors. This award was the third consecutive for Hancock, which ranked No. 1 for exceeding industry service norms and among the top three firms for expertise, attitude and accommodation of broker service representatives.
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In January 2006, John Hancock Retirement Plan Services won a Platinum Award in the League of American Communications Professionals (LACP) 2005 Inspire Awards Competition for a business proposal it created for independent financial advisors who sell 401(k)s. The Hancock 401(k) proposal package ranked among the top 20 from the more than 850 entries submitted. Hancocks package scored 96 out of 100, earning the highest possible score in the areas of first impression, message clarity, creativity, perceived relevance, overall narrative and overall visual design.
Running throughout the community

Hancocks role in the community is centralized in Boston, where the firm began and grew into an industry leader. The company runs Bostons largest custom-created corporate volunteer program and was the first Massachusetts-based company to get the national Award for Excellence in Corporate Community by the Points of Light Foundation. Hancock is particularly proud of its sports sponsorships, which began with its long-term commitment to the Boston Marathon in 1986 as principal sponsor. Hancock has also joined with the Boston Red Sox and the Dana-Farber Cancer Institute to sponsor Fantasy Day at Fenway Park to raise money for the institute. It has also sponsored the Olympic Games since 1993, and is the title sponsor of the figure skating tour, Champions on Ice.
GETTING HIRED
Put your John Hancock on an application

The careers section of Hancocks web site offers a database of available job openings, including specific menus for those looking to work in the Massachusetts, Florida, Georgia, Illinois or Wisconsin offices. Among the categories offered are actuarial, administration, customer service, finance and investment, human resources, information technology, legal, marketing and communications, sales and underwriting. Job seekers can apply online by visiting Hancocks careers site at www.johnhancock.com/about/abo_employment.jsp. Applicants interested in working specifically for the John Hancock Financial Network segment can submit a resume to the recruiting team online at www.jhnetwork.com/careers/index.html.
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Liberty Mutual Holding Company Inc.

175 Berkeley Street Boston, MA 02116 Phone: (617) 357-9500 Fax: (617) 350-7648 www.libertymutual.com
THE STATS
Employer Type: Private Company President, Chairman and CEO: Edmund F. (Ted) Kelly 2005 Employees: 39,000 2005 Revenue ($mil.): $21,161
LOCATIONS
Boston, MA (HQ) Nearly 900 offices worldwide.
KEY COMPETITORS
Allstate State Farm St. Paul Travelers
EMPLOYMENT CONTACT
E-mail: lmjobshelp@libertymutual.com
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THE SCOOP
The decision was mutual

Centered in the birthplace of liberty, the Boston-based Liberty Mutual Group is a leading global insurance company, offering full lines of coverage for cars, homes, expensive possessions, personal liability and individual life insurance through more than 370 local sales offices across the country, two direct response centers, Prudential agents and the Internet. Liberty Mutual Group runs as a mutual holding structure, owned by its policyholders. The three principal insurance companies of the group, Liberty Mutual Insurance Company, Liberty Mutual Fire Insurance Company and Employers Insurance Company of Wausau, are stock insurance companies owned by Liberty Mutual Holding Company Inc. Liberty is also a leading industry provider of group-sponsored voluntary auto and homeowner insurance programs, providing personal lines insurance through payroll deduction and direct billing for employees and members of more than 8,500 companies, credit unions, professional associations and university alumni groups. Commercial insurance products also play a significant role in Libertys portfolio, including workers comp, commercial multiple peril, commercial auto, general liability, global specialty, group disability and life, assumed reinsurance, fire and surety. In 2005, Liberty Mutual held $78.8 billion in consolidated assets and $21.2 billion in revenue. Liberty ranked number 102 on the 2005 Fortune 500 list in terms of revenue, is the eighth-largest personal lines writer and fifth-largest commercial lines writer in America. Collectively, Liberty Mutual employs over 39,000 in almost 900 offices worldwide.
Nearing a century of insuring

The Massachusetts Legislature sowed the seeds for Liberty Mutual when it passed a 1911 law requiring employers to safeguard their employees with workers compensation insurance. The following year, the Massachusetts Employees Insurance Association, the predecessor firm of Liberty Mutual, opened its doors, founded and owned by its policyholders. In 1917, MEIA changed its name to the Liberty Mutual Insurance Company, began writing public liability insurance and entered an arrangement with the United Mutual Fire Insurance Company (later renamed Liberty Mutual Fire Insurance) to offer full automobile insurance. In a
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simultaneous public service and advertising campaign, Liberty Mutual produced two films in 1921The Outlaw and The Hand of Fatethat were seen by more than 250,000 plant managers and employees. In 1936, Liberty broke ground for its new home office in Boston and became a leading provider of workers compensation insurance. By the following year, Liberty did business in all 48 states. During World War II, Liberty provided more service for policy-holding contractors overseas than any other casualty company, often in faraway places such as Somaliland, Greenland and Guam. Liberty introduced two prototype survival cars in 1957, introducing such features as headrests to guard against whiplash and safety belts. Liberty Mutual Insurance Company Limited got chartered in London to join in the international reinsurance market, the companys first wholly-owned international office, in 1973. The 1960s and 1970s found Liberty Mutual expanding into life insurance (1963), group pensions (1970), and IRAs (1975). The company formed Liberty Northwest Insurance Corporation in 1983, looking to expand its national market share, and continued its growth by adding subsidies in commercial, personal, excess lines and, in 1986, financial services with the acquisition of Stein Roe & Farnham. Earnings between 1984 and 1986 more than tripled. The late 1990s found the company adding to its coffers through acquisitions of workers compensation firms (Golden Eagle Insurance of California, 1997; Summit Holding Southeast, 1998) and mutual funds (Socit Gnrale). In 1999, the company added Guardian Royal Exchanges American operations and the Wausau Companies, a U.S. business insurance firm. Asset management subsidiary Liberty Financial began divesting in 2001, though Liberty Mutual hung onto 30 percent of the entity and merged it into its subsidiary. Diversification in the 21st century included Liberty Internationals expansion into Canada, Japan, Mexico, Singapore and the U.K. In 2002, the company reordered itself into a mutual holding company structure with three principal operating companies.
Raise the rate!

In January 2006, Liberty Mutual filed documents with the Florida Office of Insurance Regulation requesting rates to be raised by a statewide average of 25 percent. The proposed increases would cover homeowner, renter and condominium policies. Liberty Mutual submitted use-and-file requests, which would allow it to collect higher rates prior to approval by regulators, though the company says it wont apply the increase until its approved by the states department of insurance. According to
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the filing, Liberty Mutuals request was based on the companys premium and losses in Florida for the five-year period ending December 31, 2004.
Arbitrating hurricane relief

In the wake of the massive hurricanes Katrina and Rita, Liberty was faced with scores of complicated claims to settle. With so much at stake financially for both Liberty and the devastated policyholders in the hurricane region, the company chose an alternative resolution strategyindependent mediation or arbitration. Liberty Mutual was candid about its reasons for bringing in an arbitratorto reduce costs by avoiding expensive litigation that could drag on for years. Liberty announced in December 2005 that it had teamed with Kenneth R. Feinberg of the Feinberg Group to develop an Alternative Dispute Resolution (ADR) program, a voluntary, three-part process available to Liberty Mutual customers in Alabama, Louisiana, Mississippi and Texas after the customary claim-adjustment process is finished. The three-phase program works like this: First, a post-adjustment claim review (reassigning the claim to a new team manager); second, nonbonding mediation (mediator appointed by Feinberg to meet with both parties if a resolution is not yet met); third, voluntary binding arbitration (the arbitrator makes a final, indisputable determination). Feinberg, regarded in the industry as one of the countrys leading mediators and arbitrators, received widespread acclaim for his oversight of the Federal September 11th Victim Compensation Fund.
Different ways to save

Liberty began a new service in May 2005, offering truck drivers complimentary safety training sessions, looking to cut the number of accidents for client companies and ultimately save itself money in workers compensation and auto insurance claims. The hands-on training involves safety supervisors and driver trainers driving around on a track through a variety of simulated hazardous conditions, practicing how to drive a big rig through a skid, how to stop a runaway vehicle and other situations where massive trucks can lose control. Libertys corporate customers get no discount on insurance if they take the course, but would slash insurance costs over time if the number of accidents in the fleets declined. The classes appeal to a variety of companies, from medium to large corporate customers. In addition to practicing on the track, Liberty executives also offer classroom sessions, where they instruct transportation managers on how to focus on hiring good truck drivers from the start, as opposed to signing bad drivers and hoping to retrain them.
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Mutual partners in the communities

Every year, Liberty Mutual gives out the National Firemark Award to firefighters recognized by their peers for exemplary display of valor, and commitment to public health and safety by firefighters. A firefighter from St. Louis and one from Brooklyn received the 2005 National Firemark Awards at Liberty Mutuals Wheres the Fire? exhibit at INNOVENTIONS at Epcot Center at Disney World. A committee representing national fire service organizations selects award recipients from dozens of nominees every year.
GETTING HIRED
Make your move

The careers section of Liberty Mutuals web site allows prospective applicants to review job descriptions and openings by type. The categories include actuarial, claims (commercial and personal), finance and accounting, human resources, information systems, loss prevention, sales and underwriting. Recent college graduates can also specifically search for entry-level jobs. The web site also lists the career fairs Liberty will be attending, primarily in the summer and fall.
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Lincoln Financial Group

100 N. Greene Street Greensboro, NC 27401 Phone: (336) 691-3000 Fax: (336) 691-3938 www.jpfinancial.com
THE STATS
Employer Type: Public Company Stock Symbol: LNC Stock Ecxhange: NYSE Chairman and CEO: Jon A. Boscia 2005 Employees: 5,441 2005 Revenue ($mil.): $5,487.9
LOCATIONS
Greensboro, NC (HQ) Atlanta, GA Concord, NH Omaha, NE
KEY COMPETITORS
AIG AXA Financial Prudential
DEPARTMENTS
Jefferson-Pilot Securities Corporation Lincoln Financial Benefit PartnersGroup Insurance Lincoln Financial Media Lincoln Financial Sports
EMPLOYMENT CONTACT
www.resourcehire.com/clients/LFG/ publicjobs/canviewjobs.cfm
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THE SCOOP
Merging into an empire

The Lincoln Financial Corporation is a holding company that was formed through a merger between Jefferson-Pilot Corporation and the Lincoln National Corporation. In October 2005, Lincoln Financial Group agreed to acquire Jefferson-Pilot Corporation for about $7.5 billion in cash and stock. The merged company closed the deal in the first quarter 2006 and the name change followed. Before the name change, JPs life insurance and annuity companies, primarily Jefferson Pilot Life Insurance Company, Jefferson Pilot Financial Insurance Company and Jefferson Pilot LifeAmerica Insurance Company, known collectively as Jefferson Pilot Financial, supplied full suites of individual and group life insurance products in addition to annuity products. Jefferson Pilot Securities Corporation still services a wide array of securities and variable insurance products sold via a nationwide network of more than 2,300 independent financial professionals. Additionally, the JLincoln Financial Media owns and manages three network TV stations and 18 radio stations, all of which are in top 50 markets, as well as producing and syndicating sports programming throughout the southeastern U.S.
JP history
In 1907, Raleigh, North Carolina-based brothers P.D. and Charles Gold, along with several others, founded Jefferson Standard Life Insurance in hopes of building a southern firm to keep northern companies from draining the region of all its capital. In 1912, Jefferson bought two companies and moved to Greensboro, and by the retirement of the final Gold brother in 1919, the company managed operations in 14 southern states. Julian Price became president that year and would head the company until after World War II. In 1945, Jefferson purchased a controlling interest in Pilot Life Insurance and merged it with another of its companies, Gate City Life. By the end of the 1960s, Jefferson was serving more than one million policyholders in 32 states. The company also put money into a number of radio stations and TV studios. In 1967, Roger Soles took the reins of the company and reorganized it into a holding company a year later to capitalize on changing financial markets and tax laws. The new company was dubbed Jefferson-Pilot Corporation. During the 1970s JP entered new business areas, including retirement, pension, tax-sheltered annuities and financial planning services, and by the late 1970s, the company relied on its media ventures to maintain its bottom line. During the 1980s, most of its sales came
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from life insurance, while other businesses, such as casualty and title insurance and broadcast media, totaled some 20 percent of income by the dawn of the 1990s. In 1993, David Stonecipher took over from Soles, and turned the company in a different direction. He sold JP Fire & Casualty and JP Data Services in 1995 to focus on foundation businesses. In 1999 the company invested in Highland Capital Holding along with two other insurance companies, creating a holding company that sought to develop into a national financial service firm network. In 2002, the company was seeing huge gains from its Premier Partnering line, a program launched to improve the companys foundering life insurance operations by enlisting and sustaining top producers in high income markets. In 2004, David Glass took over from Stonecipher, who remained briefly as executive chairman before opting to reduce his responsibility to head the board in a non-executive function.
A spread of services
The company offers several forms of life insurance, including term insurance, universal life insurance, variable life insurance and whole life insurance. Its LifeComp suite of products offers a variety of plans that assist business and estate planning needs. Gemini LifeComp utilizes an undivided interest agreement to give benefits to owners and/or key employees, with plans structured to provide supplemental income at retirement. Elite LifeComp uses a joint ownership arrangement to provide benefits similar to the Gemini plan, and this plan falls under the loan regime of final regulations on equity split dollar. Bonus LifeComp is a full 162 bonus arrangement with a restrictive policy endorsement. Private LifeComp is a non-employer/employee private non-equity split dollar. LifeComps unique documents and plan administration packages offer its affiliates with a substantial competitive improvement. The company also offers group insurance products and services. Their offerings include term life, accidental death and dismemberment, long-term disability, shortterm disability, dental and vision.
The sporting life

Lincoln Financial Sports is a division of Lincoln Financial Media. Starting in 1934, when JP bought its first radio station, it has continued to add media outlets. Today Lincoln Financial owns 18 radio stations, as well as three TV stations in major southeastern markets, including North Carolinas first television station, as well as a TV production group that distributes broadcasts of Atlantic Coast Conference and
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Southeastern Conference NCAA football and basketball games across the northeast. Lincoln Financial Sports broadcasts over 45 SEC basketball and football games on over 50 affiliate stations in the southeast.
Mega merger
In October 2005, the Lincoln National Corporation, the parent company of the Lincoln Financial Group of companies, and JP Corporation announced that they had entered into a definite merger agreement, approved unanimously by the boards of directors of each company. The merged company, now operating under the brand name of Lincoln Financial Group, provides life insurance, annuity, retirement income and investment products and services, supported by retail and wholesale distributors. Jon Boscia, chairman and CEO of Lincoln, now holds the same position following the merger, while Dennis Glass, president and CEO of JP, serves as president and COO and as a member of the board of directors. The aggregate total cash payment to shareholders amounted to $1.8 billion. The agreement, celebrated by each as a merger of equals, brings together distribution channels with very little overlap, a multi-channel network including affiliated planners, independent registered representatives, independent marketing organizations, financial organizations and wirehouse/regional broker-dealers. The merged company is headquartered in Philadelphia, with Greensboro, North Carolina and Fort Wayne, Indiana as the centers of the life and annuity operations, respectively. Other cities with significant operations are Hartford, Connecticut, Concord, New Hampshire and Omaha, Nebraska.
GETTING HIRED
Lincoln Financial Groups web site (which still reflects the Jefferson-Pilot domain) hosts links to career opportunities at four regional offices: Greensboro, North Carolina; Omaha, Nebraska; Concord, New Hampshire; and Atlanta, Georgia. Typical jobs include: disability proficiency specialist, group underwriter, rehabilitation coordinator, customer administrative professional, systems analyst and application developer. The web site includes a link to an online application form. For applicants with specific questions or concerns, the company suggests e-mailing the HR department at its Greensboro office: gsojobs@jpfinancial.com.
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Marsh Inc.
1166 Avenue of the Americas New York, NY 10036 Phone: (212) 345-5000 Fax: (212) 345-4838 www.marsh.com
THE STATS
Employer Type: Subsidiary of Marsh & McLennan Companies Chairman and CEO: Brian M. Storms 2004 Employees: 39,750 2004 Revenue ($mil.): $7,391
LOCATIONS
New York, NY (HQ) Office locations in over 100 countries.
KEY COMPETITORS
Aon Hilb Rogal & Hobbs ING
EMPLOYMENT CONTACT
www.marshinsidetrack.com/careers.asp
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Marsh Inc.
THE SCOOP
Marsh-all arts
New York City-based Marsh Inc. is the flagship entity of Marsh & McLennan Companies (MMC), the largest insurance brokerage in the world. The company offers global risk management, risk consulting, insurance broking, financial solutions and insurance program management services to businesses, private entities, associations, professional services organizations and private clients in more than 100 countries. Marsh is part of the larger family of MMC companies, which also includes Kroll (a risk mitigation firm now known as Marsh Knoll), Guy Carpenter (risk management advice and services to reinsurance companies), Mercer Human Resource Consulting (including Mercer Health & Benefits, Mercer HR Services, Mercer Investment Consulting and Mercer Global Investments) and Mercers specialty consulting businesses (including Mercer Management Consulting, Mercer Oliver Wyman, Mercer Delta Organizational Consulting, NERA Economic Consulting and Lippincott Mercer).
Tromping through the marsh

Marsh and its related companies can be traced back to 1871, when the Dan H. Bomar Company was founded in the wake of the Great Chicago Fire. In 1885, Harvard dropout Henry Marsh joined the firm, which was known as R.A. Waller and Co. by then. When Robert Waller died in 1889, Marsh and colleague Herbert Ulmann bought a controlling stake and renamed the company Marsh Ulmann & Co. Marsh soon revolutionized the insurance industry. In 1904, management for Burlington Northern Railroad promised their account to Marsh Ulmann in addition to ManleyMcLennan (railroad insurance) and D.W. Burrows (Chicago-based railroad insurer). The firms merged together to become the largest insurance brokerage worldwide. Burrows retirement in 1906 allowed the company to rename itself yet again, this time to Marsh & McLennan. Marsh sold out to McLennan in 1935 after the company had survived the Depression with a minimal amount of layoffs thanks to cutting salaries and expanding into life insurance and employee benefits counseling after the Social Security Act passed in 1935. The firm grew through acquisitions in the 1950s, went public in 1962, and formed the holding company that would become Marsh & McLennan Companies in
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Marsh Inc.
1969. A slowdown in the insurance industry during the 1980s found the company cultivating its financial and consulting arms. In 1992 the firm launched Mercer Consulting Group to tie in its numerous consulting companies. Marsh & McLennan opened brokerage centers internationally to unify its insurance placement services for mid-market businesses in 1995, issuing a decree in 1997 that these accounts be processed at the centers rather than regional offices. That same year, the company added insurance brokerage and money management firm Johnson & Higgins and formed Marsh & McLennan Securities, a broker-dealer to manage insurance- and reinsurance-related securities. Then the trouble began. In 1998, a faction of Johnson & Higgins retired directors sued the company, alleging manipulation of the partnerships regulations and preventing them from voting to join Marsh & McLennan. In 2001, the companys investment management revenue decreased, though risk and insurance segments saw some growth thanks to higher commercial insurance premium rates. That same year, the company lost around 300 employees that worked in their World Trade Center office in the terrorist attacks of September 11.
Aftermathematics
As part of a restructuring plan in 2005, CEO Michael Cherkasky laid off 5,500 of Marshs 60,000 employees (mainly brokers and support workers), with anticipated savings of $400 million a year. In addition, the company dropped thousands of clients who demanded so much attention as to cause a drag on profits and began slowly moving away from a centralized, Manhattan-based operation. Designated regional Marsh offices would become zone headquarters or hubs. Cherkasky attributed slow new sales growth partly due to reputational reasons as well as to brokers who were sidetracked by the reorganization.
Weathering the storm with Storms

In September 2005, Cherkasky named Brian Storms as chairman and CEO of Marsh Inc., MMCs risk and insurance services subsidiary. Storms, who served most recently as president and CEO of Mercer Human Resource Consulting, succeeded Cherkasky, who would continue to function as MMCs president and CEO. Cherkasky explained that with Marsh making strides in its recovery, the time had come for him to devote his full time and attention to enhancing and implementing MMCs overall growth strategy. The 50-year-old Storms has a proven track record in business development, client relations, marketing, operations, product
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Marsh Inc.
development and international management in the financial services field. Prior to joining MMC as vice chairman of Mercer, Storms served as president and CEO of UBS Global Asset Management, Americas.
GETTING HIRED
Many ways in
Those interested in working at Marsh Inc. (as well as MMC subsidiaries such as MMC Corporate, MMC Capital, MMC Enterprise Risk, Marsh Advantage America, Marsh Affinity & Private Client Practices, Crump Insurance Services, Victor O. Schinnerer and Guy Carpenter) can search open positions on the careers section of the MMC web site; searches are done by geographic location, job department or MMC company. In addition, if prospective applicants do not see a job fitting their interest at the present time, MMC offers a profile submission link where candidates can submit a resume and personal description for later consideration. Available job opportunities for Marsh or any MMC company can be found at www.marshin sidetrack.com/careers.asp.
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Massachusetts Mutual Life Insurance Company

1295 State Street Springfield, MA 01111 Phone: (413) 788-8411 Fax: (413) 744-6005 www.massmutual.com
THE STATS
Employer Type: Private Company Chairman: James R. Birle President and CEO: Stuart H. Reese 2005 Employees: 27,000
LOCATIONS
Springfield, MA (HQ) More than 1,800 offices worldwide.
KEY COMPETITORS
Allstate Prudential State Farm
EMPLOYMENT CONTACT
www.massmutual.com/mmfg/careers /index.html
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THE SCOOP
Amassed mutually
Massachusetts Mutual Life Insurance (MassMutual) is the principal firm of the MassMutual Financial Group, made up of a worldwide network of financial services companies in fields like life insurance, annuities, retirement planning and money management. Headquartered in Springfield, Mass., MassMutual has more than 1,800 offices across the globe staffed by 27,000 employees and servicing over 11 million clients. The companys client list includes many types of businesses, such as small businesses, mid- to large-sized corporations, institutions, union, nonprofit organizations and public sector entities, in addition to its individual clients. The company ranks among the Fortune 100. MassMutual Financial Groups flagship life insurance company runs a number of subsidiaries, including: Babson Capital Management LLC (investment strategies), Baring Asset Management (investment management), C.M. Life Insurance Company & MML Bay State Life Insurance Company (variable life insurance, annuities), Cornerstone Real Estate Advisers LLC (real estate management), MassMutual International, Inc. (global business), MML Investors Services, Inc. (broker-dealer and investment adviser), Oppenheimer Funds, Inc. (asset management) and The MassMutual Trust Company, FSB (wealth accumulation, estate planning).
How the time passed for Mass

In 1851, insurance broker George Rice started Massachusetts Mutual in Springfield as a stock company; the firm became a mutual in 1867. MassMutual was purely an individual life insurance vendor until the early 20th century, first offering annuities (1917) and then disability coverage (1918). The company raised premiums on new policies due to WWI followed by the high costs wrought by the 1918 flu epidemic, yet limped through the Depression, where despite hardships it was able to add income insurance to its product suite. The company wrote its first group policy for BrownForman, Jack Daniels distiller, in 1946, and added a medical insurance line by 1950. MassMutual switched from fixed-return bonds and mortgages to stock investment in the prosperous 1950s, decentralized and began automating its operations in 1961. The computer network installed in 1970 linked each of the firms independent brokers. By 1981, with new policy growth lagging behind industry trends, MassMutual diversified, adding new services that provided higher dividends in
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exchange for adjustable interest on policy loans. The 1990s saw MassMutual enter the financial services game, picking up controlling interest in mutual fund manager Oppenheimer Fund (1990), acquiring investment management company David L. Babson & Company (1995) and snapping up commercial financier Antares Leveraged Capital Corp. and investment advisory firm Charter Oak Capital Management (both in 1996). The company merged with Connecticut Mutual in 1996, and following a failed merger attempt with Northwestern Mutual in 1998, began looking for international growth. MassMutual issued securities across Europe in 1999 and planted operations in Bermuda and Luxembourg the same year. Asia came next, with the 2000 acquisition of Hong Kong firm CRC Protective Life Insurance (renamed MassMutual Asia) and the purchases of Taiwanese firm Mercuries Life Insurance (MassMutual Mercuries Life Insurance) and Japanese insurance provider Aetna Heiwa Life (an entity of the American company Aetna) in 2001.
Renovations, real estate sales and an on-site cobbler

MassMutual busied itself with property renovations and acquisitions in 2005, to the detriment of its workers in Hartford, Conn., a city dependant on the insurance industry to rebuild its stolid economy. In October 2005, MassMutual celebrated renovations at its Enfield, Conn., campus and began relocating the remaining 850 employees at its Hartford site, which it put up for sale. The Hartford office, which once housed 1,200 employees, sent its workers to Enfield and the Springfield headquarters. MassMutual came to Hartford with the acquisition of Connecticut Mutual in 1996 and announced plans to move its operations in February 2004. The Hartford facility was the former home of employees in MassMutuals disability income, large corporate market and long-term care insurance segments. Hartford Mayor Eddie A. Perez learned of MassMutuals plans without prior warning and expressed frustration that the city didnt have the chance to lobby the company to stay there. The Enfield complex, purchased in 2004 for $27 million, underwent $53.1 million in renovations completed in Spring 2006, with an eventual capacity for 2,300 workers. The 66-acre compound includes a 1,500-space parking garage, a renovated fitness center, a new kitchen and cafeteria and an employee mall complete with a convenience store, dry cleaners, hair salon and shoe repair store. MassMutual also invested $40 million in renovating its Springfield headquarters, a project completed in February 2006.
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Still growing
In May 2005, MassMutual bought Baring, a high-profile British firm specializing in institutional finance. MassMutual described the buy as a merger with a kindred spirit, a fellow company that reflects sensible conservatism with innovation. The main intent, however, could be found in Barings international reputation as well as the entry into a major institutional market overseas. The hiring of Andrew Oleksiw, CEO of MassMutual International, several years before sent the companys international expansion into overdrive. At the time of the Baring acquisition, MassMutual had nearly $14 billion in international assets under management, excluding the new pickup in Japan, Hong Kong Taiwan, Luxembourg and Chile. These collectively made sales of $3.2 billion in 2004, an increase of about 500 percent over the previous year. Since its a AAA-rated company, MassMutual has all the capital it needs to make acquisitions, and the company is eyeing Korea, Thailand, Brazil, Mexico and the less-developed regions in Europe, particularly the outer rim from Portugal to Poland. Jeffries Group and MassMutual Financial Group announced plans in January 2006 to double their stakes in a joint venture focused on financing buyouts and corporate loans. MassMutual and Jeffries, an investment bank for mid-sized companies, would each add $125 million to Jeffries Babson Finance. The total investment will reach $500 million. The joint venture, launched in October 2004, leans on Jeffries to attract clients and MassMutuals Babson Capital Management to handle finances and assess risk. New investments certainly appear to be paying off for MassMutual. In 2004, 63 percent of the companys sales revenue came from products or distribution channels that were new within the three years prior.
Mutually beneficial
MassMutual is dedicated to community service on the local and national levels. The company boasts a roster of nearly 4,000 financial professionals committed to community service in philanthropic enterprises as well as company-sponsored programs. Programs sponsored by MassMutual include Lifebridge (entirely free life insurance intended to help qualified parents safeguard their childrens education); USTA T&EF Scholarships (over $500,000 in scholarships for students committed to academic distinction, the game of tennis and community service); Game Face (a program dedicated to rrecognizing successful female athletes); womens advisory boards that help build financial awareness in young women; a matching gift program;
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and community service awards that distribute grants to field salespeople involved in nonprofit organizations. MassMutual also focuses on the local region of its Springfield headquarters. Its hometown community involvement includes academic achievement programs recognizing local high school students; the MassMutual scholars program providing high school and college scholarships; a reading achievers program giving incentives to local children who demonstrate a love for reading; the volunteers in action program, which gives grants to nonprofit organizations that employees participate in; and taking part in an annual United Way employee contribution drive, which raised a company record $2.6 million in the 2005 campaign.
GETTING HIRED
Make a mutual decision

MassMutuals careers site (www.massmutual.com/mmfg/careers/corporate.html) offers seperate menus depending on what type of work prospective employees are searching for, either corporate careers or national sales and management careers. Those interested in corporate careers can search by geographic location or job type, which can include accounting, actuarial, audit, claims, data management, finance, government relations, investments, legal, quality assurance, systems architecture and underwriting. For candidates interested in national sales/management careers, many options are available. Again, separate menus can be found at www.massmutual.com/mmfg/ careers/natl_careers/index.html for those looking to submit resumes for jobs including financial professionals, sales managers, business professionals (CPAs, JDs, MBAs), experienced producers and college students interested in internships. MassMutual also includes detailed information about its campus recruiting practices for undergraduates, graduate students and law students at www.massmutual.com/ mmfg/careers/campusrecruiting.html.
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MetLife, Inc.
200 Park Avenue New York, NY 10166 Phone: (212) 578-2211 Fax: (212) 578-3320 www.metlife.com
THE STATS
Employer Type: Public Company Stock Symbol: MET Stock Exchange: NYSE Chairman: Robert H. (Bob) Benmosche President and CEO: C. Robert (Rob) Henrikson 2005 Employees: 65,500 2005 Revenue ($mil.): $44,776
LOCATIONS
New York, NY (HQ) More than 1,800 offices worldwide in 16 countries.
KEY COMPETITORS
AIG MassMutual Prudential
EMPLOYMENT CONTACT
www.metlife.com/Applications/Corpo rate/WPS/CDA/PageGenerator/0,16 74,P253,00.html
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MetLife, Inc.
THE SCOOP
The Amazin Met

MetLife, ranked number 37 on the 2005 Fortune 100, is the largest public life and health insurer in the U.S., with 2005 revenue of $44.776 billion and 65,500 employees worldwide. MetLife works through three principal segments. Its institutional division provides group benefits products to large and small businesses (insurance, retirement services, executive benefits and annuities). It offers individuals a suite of insurance products (including life insurance, home insurance, boat insurance, long-term care insurance) and banking and investment services (annuities, mutual funds, investment accounts, IRAs and its MetLife Bank savings rates program). MetLifes international segment gives similar products to companies and individuals overseas, primarily in Latin America and the Asia/Pacific region. The companys flagship insurance firm is Metropolitan Life Insurance Company, in addition to subsidiaries that include MetLife Investors (variable and fixed annuities, life insurance); General American (underwrites life insurance); and Metropolitan Property and Casualty (auto, home and related coverage). MetLife has made some major acquisitions in the early 2000s, such as Mexicos largest life insurer Hidalgo in 2002 and John Hancocks life insurance operations in 2003, and divestitures like the sale of the iconic Sears Tower in Chicago for $800 million in 2004. The 2005 acquisition of Travelers Life and Annuity from Citigroup for $11.8 billion vaulted MetLife to the top spot as Americas largest life insurance company.
Get Met, it stays

The company started out in 1868 as Metropolitan Life Insurance, sustained in its burgeoning years from mutual assistance societies for German immigrants. By the 1870s, MetLife could barely survive, though it managed by importing agents from Britain to train native agents about successful English policies in the U.S. Focusing on a personal touch, MetLife agents were taught to visit homes at the same time each week to build familiarity and maintain contact. By 1909, MetLife was the nations largest life insurer in terms of insurance in force. Metropolitan became a mutual company (owned by policyholders) in 1915 and began offering group insurance two years later. In 1974 it began offering automobile and homeowners insurance. Diversification efforts in the 1980s included the acquisition of Century 21 Real Estate (which was later sold in 1995) and State Street Research
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MetLife, Inc.
& Management Company. In 1996 MetLife merged with Boston-based New England Mutual Life Insurance, expanding its clientele to include the more-profitable realm of upper-income customers. In January 2000, MetLife bought GenAmerica Corp. for $1.2 billion in cash. But the company wasnt done growing. In November 2003, it announced that it had completed its acquisition of John Hancock Life Insurance Companys group life insurance business, following regulatory approval. (The companies had first announced the transaction in June.) The acquisition of John Hancocks group life insurance business strengthens MetLifes position in the group life area.
A real player in real estate

In April 2005, MetLife announced the sale of its marquee headquarters above Grand Central Terminal in Manhattan to Tishman Speyer Properties for $1.72 billion. The 58-story building, known as the PanAm building until 1992, would continue to serve as company headquarters and retain the companys name. Ten days earlier, MetLife announced the sale of its first headquarters, at One Madison Avenue in Manhattan, to SL Realty Corp. for $918 million (a deal anticipated to bring in an after-tax gain of at least $420 million).
Metropolitan goes south of the border

In March 2003, the company launched MetLife Mexico, instantly becoming the life insurance leader in the Mexican marketplace with more than three million policies nationally. MetLife Mexico combines the operations of Aseguradora Hidalgo (the leading company in the life insurance market for public institutions) and Seguros Genesis (an insurer specializing in products and services for the public and private market), both now part of the MetLife. MetLife Mexico offers insurance and asset accumulation services specialized for civil servants through Aseguradora Hidalgo, which insures over 2.8 million civil servants. MetLife Mexico also provides life insurance and additional financial services to private institutions. MetLife, through Seguros Genesis, has competed in the Mexican insurance industry since 1992. Seguros Genesis sells individual and group life insurance, as well as retirement and savings products through sales agents and brokers and serves approximately 1.3 million Mexican customers. In June 2002, MetLife acquired Aseguradora Hidalgo through a competitive bidding process from the Mexican government. Aseguradora Hidalgo is the largest life insurance provider in Mexico with an overall market share in the life market of 27
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MetLife, Inc.
percent. Aseguradora Hidalgos group business and individual business market shares are 38 percent and 23 percent, respectively. The company is also the exclusive provider of life insurance to federal government employees in Mexico.
No. 1 in the citi

In February 2005, MetLife announced that it would buy Citigroups life insurance business in an $11.5 billion deal that made MetLife the largest provider of life insurance for individuals (based on sales) in an increasingly consolidated industry. The deal allowed MetLife to leapfrog from eighth in the industry over such titans as New York Life and AIG to claim the top spot. Pundits said the deal proves that Citigroups plan to become a one-stop financial services firm, adding insurance underwriting to lending and commercial banking, did not succeed as projected. As part of the agreement, MetLife will have access to Citigroups broad sales network for a decade and expects an annual savings of at least $150 million from more efficient product administration and sales support.
New blood
MetLife announced in December 2005 that its chairman and CEO, Robert Benmosche, will retire as CEO effective March 2006 and as chairman of the board following the companys annual meeting with shareholders in late April. The board unanimously selected 33-year MetLife veteran C. Robert Henrikson, MetLifes President and COO, to succeed Benmosche as chair and CEO. Benmosche served in his positions since 1998, joining the company as an executive VP in 1995. Prior to joining MetLife, he acted as an executive VP at PaineWebber Group Incorporated from 1989 to 1995.
GETTING HIRED
Get Met, it pays

MetLifes web site offers in-depth descriptions of working life at Met in a number of different job categories, including administration, actuarial, auditing, claims, eBusiness, finance, IT, investments, marketing, sales, underwriting, and wellness and fitness. The web site provides a searchable database of job openings and encourages interested candidates to apply online or submit a resume for future consideration. To search for available positions at MetLife, job seekers should log on to:
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MetLife, Inc.
www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator/0,1674,P253,0 0.html.
Diversity goals being met

MetLife has received many accolades for its commitment to diversity in the workplace. For the third consecutive year, the company scored a perfect 100 in the Human Rights Campaign Foundations (HRC) 2005 Corporate Equality Index, a rating system measuring how major American corporations treat their gay, lesbian, bisexual and transgender (GLBT) employees, customers and investors. HRC rates companies from 0 to 100 percent based on seven criteria such as company policies, employee benefits, training and support networks. Not surprisingly, HRC named MetLife to its Best Places to Work for GLBT Equality list released in January 2006. In 2005, Metlife landed on Working Mother magazines list of the 100 Best Companies for Working Mothers for the seventh consecutive time, recognizing the companys efforts in providing working mothers flexibility and advancement opportunities. The company is also on DiversityIncs Top 50 Companies for Diversity.
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Mutual of Omaha Insurance Company

Mutual of Omaha Plaza Omaha, NE 68175 Phone: (402) 342-7600 Fax: (402) 351-2775 www.mutualofomaha.com
THE STATS
Employer Type: Private Company Chairman and CEO: Daniel P. (Dan) Neary 2005 Employees: 4,918 2005 Revenue ($mil.): $37,427.62
LOCATION
Omaha, NE (HQ)
KEY COMPETITORS
Aetna MetLife UnumProvident
DEPARTMENTS
Accounting Finance Information Technology Management Medical Sales/Marketing
EMPLOYMENT CONTACT
mutualofomaha.com/careers
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THE SCOOP
Its mutual
In todays unpredictable environment, Mutual of Omaha offers clients safety nets of all kinds. The Fortune 500 insurer, a private company owned by its policyholders, provides individual insurance for life, critical illness, long-term care, disability, and travel, as well as investments and annuities. The company also offers worksite plans providing employee benefits like life, dental and health insurance, prescription drug coverage and investment products that include 401(k) plans, group annuities and institutional investments offerings. Mutual of Omaha boasts a total of seven major subsidiaries, through which the company paid out more than $2.6 billion in benefits in 2005. The end of 2005 found Mutual of Omaha in the strongest financial position in its history. Total consolidated assets and retained earnings were $18.4 billion and $3.2 billion respectively at the end of the fiscal year. Statutory surplus (additional funds tucked away to meet current and future obligations to policyholders) ended 2005 at $1.75 billion. The companys revenue comes primarily from health premiums, which account for 47 percent. Investment income follows (22.2 percent), then life insurance premiums just behind (21.9) and annuities at 8.9 percent. Three-quarters of Omahas income goes toward policyholder benefits.
Roots
Young PhD student C.C. Criss saw early on that patients werent getting enough medical protection, so he started providing his own coverage. The company he founded, Mutual Benefit Health and Accident Association, was incorporated in 1909. The Mutual of Omaha moniker was adopted in 1962. V.J. Skutt expanded the companys reach after he took the helm in 1949. He helped the company grow from a small regional insurer into a much larger, national financial services business. Also under Skutts watch, the company embarked on an adventure that would soon make its name synonymous with lions and tigers and bears: Mutual of Omahas Wild Kingdom. The first episode aired in 1963 and taught a generation of kids about nature through the shows engaging mix of video footage of wild animals and hosts commentary (first from Marlin Perkins, and later Jim Fowler and Peter Gros). In 1971 the show moved from network primetime TV to syndication on the Mutual of Omaha National Syndication Network, which 200 stations asked to
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join. Over the years, the famous nature show has won 41 major awards, including four Emmys.
Farewell to individual policies

In late 2002 and early 2003, the company increased its rates. It was a precursor to discharging as many as 50,000 customers from its rolls when the company said it would stop selling and renewing individual policies in 2004. Industry-wide, premiums have been rising due to increasing health care costs and the charges of complying with government regulations. Because of this, individual coverage has been proving too costly for Mutual and some other insurers.
Building home base

Big businesses have the potential to keep their home towns flush with jobs and beautified city spaces. Mutual of Omaha has done just that, and more. Chairman and CEO Dan Neary sits on the leadership council of Go!, the Greater Omaha Economic Development Partnership, a five-year, $20 million economic development program launched by citys Chamber of Commerce in early 2004. The program works to boost Omahas metropolitan population by steadily increasing the job and business investment bases. By bolstering the demographics and good jobs in a mix of industries, Go! can help increase the local economy, which draws more world-class companies and workers, which will raise the economy and be better for business, as well as the city.
More than capable

From 2003 to 2004, Mutuals group long-term disability (LTD) product managed an 83 percent increase in sales growth. The sizeable increase helped Mutual move up six spots against its competitors in the JHA U.S. Group Disability Market Survey industry rankings. The survey also found high gains in new cases for Mutuals group short-term disability (STD) product. In 2004, Mutual organized a sales force dedicated entirely to group life, disability and dental products. The company also improved focus through a number of methods (such as national advertising) placed on educating consumers about the importance of disability coverage.
401 Klass
Plan Sponsor magazines annual survey of 401(k) plan sponsors nationwide ranked Mutual of Omaha Best in Class in nine service categories when comparing the
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companys top scores to other leading industry plans in 2005. The survey, which measures responses from employers across America, centered on Mutuals customer service. Mutual received nine Best in Class awards for service-related categories that included participant communications materials, clarity of participant statements, timeliness of participant reporting and turnaround times for loans and withdrawals.
Building community connections

In 2005, the Mutual of Omaha Foundation was established to further extend the companys efforts to make a difference in the community in which its based. The Foundation focuses on addressing the communitys critical needs and empowering change. Some of its projects have included supporting a medical clinic that provides health care to the disadvantaged who would otherwise go without and giving resources to an inner-city teacher to introduce students to live theater.
GETTING HIRED
Mutually beneficial
The careers section of Mutuals web site offers links to information on student programs, sales careers and life at Mutual as well as the companys benefits, work life and diversity programs. The companys web site also provides searchable job databases for current Mutual employees as well as those looking to work at the company. Positions are available in categories that include administrative, claims, facilities, finance, health care, human resources, IT, legal, marketing, publicity, sales and underwriting. Potential job applicants are encouraged to apply online at mutualofomaha.com/careers/index.html. Additional queries for information can be e-mailed to careers@mutualofomaha.com.
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Nationwide Mutual Insurance Company

1 Nationwide Plaza Columbus, OH 43215 Phone: (614) 249-7111 Fax: (614) 249-7705 www.nationwide.com
THE STATS
Employer Type: Public Company Stock Symbol: NFS Stock Exchange: NYSE Chairman: Arden L. Shisler Director and CEO: William G. (Jerry) Jurgensen 2005 Employees: 35,000 2005 Revenue ($mil.): $4,339.9
LOCATIONS
Columbus, OH (HQ) Denver, CO Des Moines, IA Dublin, OH Lincoln, NE Sacramento, CA Operations in 50 states, Europe and Latin America.
KEY COMPETITORS
AIG GEICO MetLife
EMPLOYMENT CONTACT
www.nationwide.com/nw/careers
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THE SCOOP
Nationwides nationpride
Ranked No. 99 on the Fortune 100 list, the Columbus, Ohio-based Nationwide is one of the worlds largest diversified insurance and financial services organizations in the world with over $157 billion in assets under management. The Nationwide Mutual Insurance Company controls a laundry list of around 16 subsidiaries, including Allied Property and Casualty Insurance, Farmland Mutual Insurance, Scottsdale Indemnity Company and Nationwide Agribusiness, among others. A few statistics, if you will: in property and casualty underwriting in America, Nationwide ranks fourth in homeowner insurance, sixth in auto insurance and is the seventh-largest total property and casualty insurer. As for life and retirement savings, Nationwide is the No. 1 provider of qualified retirement plans, fifth in variable life insurance and 11th in individual variable annuities. Based on assets, Nationwide is the 10th-largest U.S. insurer and 11th-largest life insurer.
From Ohio to nationwide

In 1919 members of a farmers collective established their own auto insurance company, the Ohio Farm Bureau Federation, mainly to avoid having to pay city rates. To get state licensing, the group needed to recruit 100 policyholders; it garnered over 10 times that. The Federation expanded into Delaware, Maryland, North Carolina and Vermont in 1928, spread into cities in 1931 and began carrying fire insurance in 1934 and life insurance the next year. The companys financial growth led to the need for spatial growth, so in 1936, it moved to the famous 246 building in Columbus. Though business slowed during WWII, by 1943 the company worked in 12 states and Washington, D.C., and began to add regional offices in the early 1950s. With westward expansion and the addition of 20 more states, the company changed its name to Nationwide Insurance in 1955. Nationwide continued to grow in the 1960s and 1970s, and in 1978, moved into its international headquarters, One Nationwide Plaza, a 40-story structure that became Central Ohios largest office building. The 1980s showed further expansion, as the company added Colonial Insurance of California (1980), Financial Horizons Life (1981), Scottsdale (1982), and, the largest, Employers Insurance of Wausau (1985). Earnings fluctuated in the 1990s while the company added Wausau and consolidated offices.
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As the millennium loomed, Nationwide focused on its central insurance operations, divesting Nationwide Financial Services and buying Allied Group, CalFarm and European asset management firm PanEuroLife. At the close of 2000, Nationwide sought permission to cease the non-lucrative HMO business in favor of its more popular PPO options.
Hurricane relief
Nationwide made extraordinary efforts to help those devastated by Hurricane Katrina. The Nationwide Foundation announced in September 2005 that it would donate $500,000 to the Red Cross Disaster Relief Fund to aid in recovery efforts. The Foundation also offered to match all personal contributions of Nationwide employees to the United Way Hurricane Katrina Response Fund. Nationwide made other contributions besides the financial, including dispatching catastrophe response teams of agents, claims representatives and associates from across the country to serve its customers; Nationwide Financial Services helped customers access retirement plan and life insurance assets to cover emergency expenses; and suspended policyholder obligations for at least two months for customers involved in the disaster. Founded in 1959, the Nationwide Foundation is an independent corporation dedicated to improving communities where its employees live and work, and awards grants to nonprofit organizations focused on health and human services, higher education, culture and the arts, and civic programs. In 2005, the Foundation announced a commitment to give out grants totaling more than $14 million to assist more than 1,000 nonprofit organizations, including some 700 United Way chapters across the U.S. Combined with donations from Nationwide employees, the companys total charitable contributions for 2005 came to almost $22 million.
GETTING HIRED
Nationwide wants you on its side

Nationwides careers section (www.nationwide.com/nw/careers) offers a wealth of information for job seekers relating to benefits, university relations. Job seekers are ancouraged to upload their resumes and apply for positions online. The company holds resumes in its database for three months, accessing them to match them to newly available posts. Since Nationwide receives over 50,000 resumes annually, its
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HR department only contacts those whose qualifications best match the needs of the job description. Various career paths at the company include marketing and sales strategy, customer service, financial accounting, insurance, customer solutions center, office service and property management, information systems and technology and human resources.
Top-notch lifestyle
Computerworlds annual Best Places to Work in IT feature named Nationwide at number 53 in the top 100 work environments for tech professionals in 2005, based on company offerings in benefits, diversity, career development, training and retention. Nationwides placement draws mainly from its focus on career advancement for its IT associates. The company has created career guides for each of its IT jobs, defining the necessary skills for each IT group and providing specific recommendations for development and advancement. Nationwide also got lauded for its flexibility for work and family life.
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New York Life Insurance Company

51 Madison Avenue New York, NY 10010 Phone: (212) 576-7000 Fax: (212) 576-8145 www.newyorklife.com
THE STATS
Employer Type: Private Company Chairman and CEO: Seymour (Sy) Sternberg 2005 Employees: 12,650 2005 Revenue ($mil.): $12,853
LOCATIONS
New York, NY (HQ) Alpharetta, GA Austin, TX Clinton, NJ Kansas City, MO Parsippany, NJ Tampa, FL Westwood, MA
KEY COMPETITORS
Allstate CIGNA MetLife
EMPLOYMENT CONTACT
Agents: www.newyorklife.com/cda/0,3254,8 072,00.html (to become an agent) Corporate: www.newyorklife.com/cda/0,3254,11 433,00.html (corporate employment)
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THE SCOOP
Big insurance in the Big Apple

New York Life Insurance Company is the top mutual life insurer in the U.S. and one of the largest in the world. On the investment side, New York Lifes affiliates provide institutional asset management and trust services and, through subsidiary NYLIFE Distributors Inc., offer securities products and services such as institutional and retail mutual funds, including 401(k) products. As a mutual insurance company, New York Life works for the benefit of its policyholders, or members. New York Life, subsidiaries included, is on the Fortune 100 list, with over $138 billion in assets under management and more than $13 billion in operating revenue. The company has offices across America, as well as in Argentina, China, Hong Kong, Mexico, Taiwan and South Korea. The company has earned some of the highest marks for financial strength in the biz. A.M. Best bestowed New York Life with an A++, Standard & Poors gave it an AA+, Moodys dropped an Aaa on it, while Fitch calculated an AAA rank. New York Lifes surplus, counting investment reserves, totals $11.8 billion with a surplus-to-assets ratio of 8.2 percent.
History of innovation
New York Life traces its history to 1845 when it opened in New York City as the Nautilus Insurance Company. The insurer changed its moniker to the present-day New York Life Insurance Company just a few years later in 1849. The company started with assets of just about $17,000, but it wasnt long before its coffers began to swell. Soon, New York Life was making a name for itself through a series of innovative business practices. In 1860, before any state law required it, the company developed the non-forfeiture option, which became the foundation of guaranteed cash values found in policies today. This enables a policy to remain in force even when a premium payment is inadvertently missed. By the mid-1800s, New York Life became the first American life insurance company to pay a cash dividend to policyholders, and in 1892 it became the first major company to issue policies with an incontestable clause, setting a time limit on the insurers right to dispute a policys validity based on material misstatements made in the application. The company took a big step in 1894 when it became the first insurer in the U.S. to issue life insurance to women at the same rates as men. In fact, Susan B. Anthony,
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the 19th-century American social reformer, was one of the first women to get an insurance policy, and her insurer was New York Life. Then, in 1896, New York Life became the first company to insure people with physical impairments or hazardous occupations. In another first, in 1920 the company issued a policy with a disability benefit that presumes total disability to be permanent after a predetermined number of months.
Going to the customer

The company wasnt just forward-thinking in terms of how it issued its policies, but also in how it conducted other business-related matters. In 1892 it became the first insurer to organize a branch office system, establishing an integrated network of general offices across the country. Today, these GOs serve the companys nearly 11,000 agents. In May 1998, New York Life launched the Virtual Service Center on its web site, becoming the first major life insurer to provide a full range of customer service capabilities on the Web. At the Virtual Service Center, customers can request policy cash, loan and dividend values; download change-of-address and beneficiary forms; report the death of an insured person; and more. Such innovations have paid off nicely for the company. By 2004 New York Life had more than 12,000 employees and sales of almost $26 billion. Cementing its position as the largest mutual life insurer in the U.S., the company excelled in 2003. Net income jumped 10 percent compared to 2002, from $1 billion to $1.1 billion, and the company reported a record-high $556 billion in individual life insurance in force. The main drivers behind New York Lifes results are the life and annuity division, which posted a 3 percent revenue increase for 2003 (the company holds the No.-1 market share in the U.S. for new life premiums), and its investment management business, which grew its assets by 14 percent, totaling $179 billion for the year. Fortune magazine ranks New York Life at number 70 in its 2004 Fortune 500 list, ahead of giants such as Goldman Sachs, Merck and Coca-Cola.
Not an insurance company, but a mutual insurance company ...

New York Life, despite its size, is not a publicly traded company. As a mutual insurance company, it is operated for the benefit of its members (policyholders). As such, policy owners have the right to vote for the companys board of directors and to receive a share of the dividends declared by the board each year. As New York Lifes Chairman and CEO Sy Sternberg explained, The primary responsibility of a mutual insurance company is to ensure that the long-term benefits promised to its
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policyholders are secure and protected. Our view is that our company can best serve its policyholders as a mutual. By remaining a mutual, New York Life can continue to manage for the long term, instead of the quarter-to-quarter orientation of the investment community.
International presence
New York Life International LLC, which is the overseas arm of New York Life, offers life insurance and asset accumulation products and services to individuals and groups in selected emerging markets through its subsidiaries, joint ventures and affiliates. In 1988, under the name New York Life Worldwide Holding, Inc., New York Life entered the international life insurance market when it acquired a life insurance company in Hong Kong. Currently, New York Life International operates in Argentina, China, Hong Kong, India, Mexico, the Philippines, South Korea, Taiwan and Thailand. New York Life also established a representative office in Hanoi, Vietnam. After its initial foray into the Asian market, the company entered South Korea in 1992 through a joint venture, which is now wholly-owned. Also in 1992, New York Life established business in Taiwan, and by the end of 2003 had over 30 agency offices throughout the island. It is one of the top performing markets for New York Life International in Asia. In September 2005, Haier New York Life announced the opening of a Qingdao branch in Shangdong province in China. Shangdong, with one of the best gross domestic product growth rates of any province in China, and Qingdaos population of seven million is seen as the source of this growth. Haier New York Life employs over 1,500 agents throughout China, with 180 staffers in Qingdao.
Learning the lingo

As if this activity werent enough, New York Life also has three joint venture operations with partner HSBC in Argentina; HSBC New York Life, a life insurance company; Maxima, a pensions business; and HSBC Salud, a health care company. All three operations rank among the top three in market share in their respective sectors. In February 2003, the company unveiled a Spanish-language web site, and in December, launched a Vietnamese-language site to serve its international customer base.
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Investing in its future

Despite its drive to expand internationally, New York Life hasnt forgotten its American roots or the need to expand the services it offers to consumersboth individuals and institutionsat home. The American Banker reported in September 2004 that New York Life Investment Management (NYLIM) was planning to aggressively expand its position in the mutual fund market now that regulations regarding the investment vehicle have been changed to allow a broader mix of players into the market. Mainstay Funds, a division of the investment management unit, launched a new fund in May 2004 that had already generated $300 million in assets by the time of The American Banker article. While that may sound like a huge success, the unit has even loftier goals. Chris Blunt, NYLIMs executive vice president, told The American Banker that the unit plans to double its $16 billion of assets over the next three to five years. To help reach that goal, the company brought in three new sales professionals for the mutual fund business in September 2004 with plans for further additions.
New bosses
In November 2003, the board of New York Life approved plans to form an office of the chairman, effective January 1, 2004. Frederick J. Sievert, president of New York Life, joins Sy Sternberg, chairman and CEO, in the newly created office. Sternberg has been chairman and CEO since 1997 while Sievert has been president since 2002, and before that he was vice chairman since 1997. Both executives retain their current titles. The company announced further additions to the executive ranks in October 2004 when two new hires signed on, both reporting to the CFO, with Gregory Deavens (formerly of CIGNA and GE Capital) assuming responsibility for financial analysis and other related matters, and Russell Bundschuh leading various M&A and strategic planning (meaning more joint ventures, perhaps?) activities. New York Life Worldwide Limited, a Hong Kong-based New York Life affiliate, appointed Jeff Walker as president and CEO in June 2005. Walker succeeded Gary Bennett, who transferred to head New York Lifes offices in India. Walker served previously as COO of the Asia region and CEO of New York Life Vietnam, where he spearheaded the companys successful attempt to obtain an operating license. Prior to that, he led New York Lifes operation in Indonesia as well as building up the companys presence in India, China and the Philippines.
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Giving back
The company founded the New York Life Foundation in 1979 to channel its contributions to national and local nonprofit groups. From time to time, the company focuses on specific areas of precedence. Currently, the companys spotlight is on Nurturing the Children, a program established in 1998 that channels the majority of the Foundations resources to organizations and services geared toward helping young people. Its main focus, according to its web site, is on safe places to learn and grow, educational enhancement and mentoring. By 2005, the Foundation had committed over $21 million to the project.
GETTING HIRED
Youll love New York!

The careers section of New York Lifes web site offers links to available opportunities both as an agent and in the corporate office. Potential agents can read about New York Lifes training program, benefits package and information about potential income (psst unlimited!). The site also offers a database of job opportunities at New York Lifes office locations as well as field positions. Offices are located in Tampa, Florida; Alpharetta, Georgia; Kansas City, Missouri; Westwood, Massachusetts; Clinton, New Jersey; Parsippany, New Jersey; New York City; and Austin, Texas.
A diverse employer
DiversityInc magazine named New York Life as one of the seven insurance industry firms on its Top 50 Companies for Diversity 2005 list. The rankings are based on workforce demographics for race, ethnicity and gender, and evaluates factors such as retention rates for diverse workers and a count of high-ranking employees from diverse backgrounds.
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Northwestern Mutual Life Insurance Company, The

720 E. Wisconsin Avenue Milwaukee, WI 53202 Phone: (414) 271-1444 www.northwesternmutual.com
THE STATS
Employer Type: Private Company President, Director and CEO: Edward J. Zore 2005 Employees: 4,700 Corporate employees; 7,900 Financial representatives 2005 Revenue ($mil.): $18,400
LOCATIONS
Milwaukee, WI (HQ) Offices in all 50 U.S. states.
DEPARTMENTS
Annuities Disability Income Insurance Investment Products and Services Life Insurance Long Term Care Insurance
KEY COMPETITORS
American Express MassMutual New York Life
EMPLOYMENT CONTACT
www.careers.nmfn.com (Financial representative careers) www.nmfn.com/tn/careerscorp corporate (Corporate careers)
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THE SCOOP
Big and old

Best known as one of the oldest insurance companies in the U.S., Northwestern Mutual is the largest direct provider of individual life insurance in the country. Though the company has been offering insurance since 1857, today, through its subsidiaries, it also provides a variety of investment products and services for its customers. With $133 billion in assets, the company was ranked No. 116 by revenue in the 2006 Fortune 500. In February 2006, Fortune named Northwestern Mutual the most admired life insurance company for the 23rd straight year. In 2005, Northwesterns premium revenue rose more than six percent to $11.4 billion and total surplus, one of the key factors of an insurance companys strength, rose to $12.9 billion. In 2005, for the third year in a row, Northwestern Mutual has earned the highest customer satisfaction score among U.S. life insurers, according to the American Customer Satisfaction Index (ACSI) survey, which polled 65,000 people. The company, its subsidiaries and affiliates provide life insurance, annuities, mutual funds, long-term care insurance and disability income insurance. Its affiliated companies include those that make up the Russell Investment Group, which provide investment management and advisory services; Northwestern Mutual Investment Services, LLC (NMIS), a wholly-owned company of Northwestern Mutual, a brokerdealer and a member of NASD and the Securities Investor Protection Corporation (SIPC); and Northwestern Mutual Wealth Management Company, a wholly-owned company of Northwestern Mutual, a limited purpose federal savings bank and a registered investment adviser that provides financial planning, investment management and trust services. A subsidiary, Northwestern Long Term Care Insurance Company, offers long-term care insurance.
Rating high on stability

In 2005, as a testament to the companys stability, Northwestern Mutual garnered the best possible insurance financial strength ratings by all four major ratings agencies. In April 2005, Moodys gave the company its highest rating, AAA, stating, Northwestern Mutual is committed to retaining its mutuality, which Moodys believes can be a competitive advantage in todays markets. While stock companies have greater access to capital, advantages of remaining a mutual company include extremely competitive returns to participating policyowners in the form of dividends
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and reduced short-term scrutiny from outside parties, allowing the company to take a longer-term planning horizon. In August 2005, Standard & Poors gave the company a AAA rating, stating, The rating reflects the companys position among market leaders in individual life insurance business, its extremely strong capitalization and very strong operating performance. Other factors include its career agency force, significant scale and strong liquidity. Two other ratings agencies, Fitch and AM Best, also reaffirmed their highest rating for the firm during 2005, AAA and A++, respectively.
Shedding Mason Street

In March 2006, Northwestern announced the completed sale of its nearly nine-yearold Mason Street mutual funds unit. Assets in 10 of the 11 funds in Mason Street went to American Century Investments, with the remaining fund going to Federated Investors, Inc. The president of Mason Street Advisors said the group had never grown as anticipated due to a combination of factors that included the stock market collapse of the early 2000s and the cost of regulatory compliance after the mutual fund industry scandal. In September 2005, Mason Street Funds held assets of $1.9 billioncertainly nothing to scoff at but dwarfed by many others in the industry such as American Century ($80 billion) and Federated ($40 billion). Mason Street Advisors continues to provide investment management services and manages over $69 billion in assets.
Hear ye, hear ye! Gather round!

For 125 years, members of Northwesterns field force have taken an annual trip to Milwaukee for a convention on learning new methods to improve business and celebrate another year at the company. In July of 2005, more than 9,000 Northwestern Mutual financial representatives and their families gathered for meetings at the Midwest Airlines and Bradley centers. Among the speakers at the event were legendary University of Tennessee Lady Volunteers basketball coach Pat Summitt and former President George H.W. Bush, who, according to an interview in the Milwaukee Journal Sentinel with speechwriter Jim McGrath, praised the company for values that have really stood the test of time. The Bush speech, as well as all the events, was closed to the public. One thing that has remained constant is that agents from around the country pay their own way to attend the event, though that hasnt put much of a damper on attendanceabout 4,500 of 7,000 agents
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generally show up. Many call the event the most important four days of each year as far as their careers are concerned.
GETTING HIRED
Northwestern for life

The careers section of Northwesterns site is split into three pagesfinancial representative careers, corporate careers and financial representative intern opportunities. The financial representative site walks prospective applicants through life as a Northwestern agent, from the application procedure and hiring process to lifestyle and benefits. Job seekers can apply at www.careers.nmfn.com. Interested in a corporate career at Northwestern Mutual? The company offers a searchable database of job openings in a number of different categories, including accounting/finance, actuarial, audit/tax, broker/dealer, customer service, investment /securities, legal/compliance, medical services, public relations/communications, telecommunications and underwriting/claims. Check out www.nmfn.com/tn/ careerscorpcorporate to apply online.
Whats good for the policyholder is good for the employee

Northwestern Mutual consistently receives positive marks from industry observers about its hiring practices and commitment to diversity and young workers. The Princeton Review placed the company on its top 10 internships in America list in 2005, saying, Northwestern Mutual interns, like financial representatives, discover markets, foster client relationships, and build quality services and sales. Selling Power magazine ranked Northwestern No. 2 on its 2005 25 Best Service Companies to Sell For, the same year that The Black Collegian ranked the company No. 22 among its Top 100 Employers. And, get this according to a 2004 article in Fortune, the life insurer hasnt laid off a single person in 145 years. Hows that for job security?
Smokers want Northwestern to butt out

Yet there are a few drawbacks for Northwestern corporate employees, at least for those who smoke. In January 2006, a new policy went into effect charging smokers (whether they smoke at home or outside the office on the job) an extra $25 a month
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for health insurance coverage. With American companies scuttling to find ways to curtail escalating health costs, an increasing number of employers are looking into controllable behaviors or conditionssmoking, obesity, high cholesterol, lack of exercise. Companies like Northwestern say that not only is it unfair to charge workers with healthy lifestyles extra to subsidize their unfit co-workers, but that an extra $25 a month might be incentive enough for their staff to stamp out their bad habits (and enjoy a longer career, natch). At Northwestern, the $25-per-family monthly surcharge applies if any family member smokes, even if the employees themselves do not.
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Oxford Health Plans, LLC

48 Monroe Turnpike Trumbull, CT 06611 Phone: (203) 459-6000 Fax: (203) 755-3962 www.oxhp.com
THE STATS
Employer Type: Subsidiary of UnitedHealth President and CEO: Charles G. (Chuck) Berg
LOCATIONS
Trumbull, CT (HQ) Offices in all 50 U.S. states, Puerto Rico, Canada, Guam and the U.K.
KEY COMPETITORS
Aetna CIGNA Health Net
DEPARTMENTS
AmeriChoice Ingenix Ovations Specialized Care Services Uniprise UnitedHealth Group UnitedHealthCare
EMPLOYMENT CONTACT
www.oxhp.com/main/careers/index.html
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THE SCOOP
Putting the Oxford before the cart

Oxford, a managed health care subsidiary of UnitedHealth Group, provides benefit plans to over 1.5 million members in Connecticut, New Jersey and New York. Its products include the Freedom Network and Liberty Network HMOs, in addition to point-of-service plans such as the Freedom Plan and Liberty Plan that merge the cost controls of managed care with the ability to personalize indemnity coverage. Oxford serves mainly small and medium sized employers and prides itself on its flexibility.
The rise of Oxford Health Plans

Oxford Health Plans started small in the spare bedroom of founder Steve Wiggins Connecticut home in 1984. When 1990 rolled around, the company was the secondmost profitable health maintenance organization (HMO) in New York. Particularly important to Oxfords success was the Freedom Plan, allowing customers who paid higher deductibles to choose doctors outside its network. With business hopping, Oxford went public in 1991. Having entered the Medicaid/Medicare markets, the company introduced its Liberty Plan in 1993, and in the same year bought SmokEnders. In 1996 Oxford introduced a network of alternative care practitioners offering services like acupuncture and yoga, among others. The company markets its products and services through a variety of HMO subsidiaries, including Oxford Health Plans Inc. in New York, New Jersey and Connecticut, and MedSpan Health Options, Inc., as well as through its insurance subsidiaries, Oxford Health Insurance, Inc. and Investors Guaranty Life Insurance Company. Oxford Health Insurance holds licenses to sell accident and health insurance from the Departments of Insurance of New York and Connecticut, the Department of Banking and Insurance of New Jersey and the Commonwealth of Pennsylvania. In May 2001, the company acquired all of the outstanding stock of Investors Guaranty Life, a California-based insurance company licensed to write annuity, life and health insurance policies in many states. In March 2002, it acquired MedSpan for $18 million. Oxford had sales of $5.5 billion in 2003, up from $4.9 billion in 2002.
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... and the fall

In October 1997, Oxford Health Plans, Inc. seemed to be on top of its game. It had acquired Floridas 15,000-member Riscorp Health Plans, and its stock price hovered at around $80 per share, meaning a market capitalization of over $6 billion and a price/earnings ratio of almost 60. However, the company posted a loss for the third quarter of 1997, news which burst the Oxford bubbleits stock plunged 62 percent in a single day. Industry observers offered many hypotheses for what went wrong, but two in particular emerged. First, the companys homegrown billing technology had failed to indicate rising costs or to process payments efficiently. Second, there was the high costs of the Oxford model, in which doctors would get their usual fees and patients could choose their doctors.
Oxford decided that it needed to reinvent itself, and embarked on a costly business overhaul. During the first half of 1998, the company recorded restructuring charges totaling $123.5 million owing to its attempt to better align its organization and cost structure. These charges included estimated costs related to disposing of or closing of non-core businesses and writing down certain property and equipment. During the third quarter of 1999, Oxford took another $19 million hit due to restructuring costs, and then in 2000, swallowed another $20 million. By the end of 2003, the companys revenue stream had increased every year since 2000hitting $5.5 billion in revenue and boasting 1.5 million members (the count declined by about 60,000 people during 2003) concentrated largely in New York, New Jersey and Connecticut. By the first quarter of 2004, the company had a net income of $86.6 million, compared to $72.9 million, for the prior years quarter.
Keeping it alive
In 1999, Oxford Health Plans and UnitedHealthcare announced theyd reached an agreement to use a single application process for tracing the credentials of potential medical providers for their networks. This type of agreement, never before made between major health care providers, greatly reduced operating costs as well as increased the efficiency of health plans. (This partnership also was the start of strong relationship for the two companies, but more on that later.) Oxford also discontinued its Medicare Advantage plan in counties in New York and New Jersey in 2001, due to rising health care costs. Ridding itself of some of its unprofitable businesses helped Oxford return to profitability.
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United by merger
In July 2004, Oxford Health Plans was acquired by health care giant UnitedHealthcare. With financial backing from a company about six times its size, the deal will work to safeguard Oxfords future. Insurance rating agency Standard & Poors immediately raised Oxfords financial strength rating to an A from BBB+. The merger will help Oxford position itself as a leader in health care coverage in the tri-State area, enabling it to provide coverage to larger organizations, including Fortune 500 companies. Oxford had previously focused on small and midsized corporations. UnitedHealthcare is currently merging its local operations with Oxfords business, making it the regional center for the tri-state service area. UnitedHealth Group paid $4.7 billion in stock and cash for Oxford. The company had long been a potential takeover target because of its huge market share in New York, a region with a weakened economy that had pundits anticipating that Oxford would have a difficult time attracting new clients. Oxfords shares, up 97 percent the year prior to the sale, rose $4.05 on news of the sale to close at $54.94 per share. An analyst said in a New York Times interview, This is a smart deal for UnitedHealth, and a good deal for Oxford, noting that Oxford shareholders will probably get a price they probably never thought theyd see in a hundred years.
Teaming up with Healthcare Hospitals

Oxford and New York Presbyterian Healthcare System announced a new care management program in November 2005 for selected UnitedHealth and Oxford members with coronary artery disease (CAD), congestive heath failure (CHF) or diabetes, or who have suffered strokes. Eligible members will receive educational outreach and materials prior to their discharge from a hospital; will be enrolled in a direct mail-order pharmacy program and be provided with a weeks worth of prescription drugs after discharge; the opportunity to get referrals to appropriate specialists; and will receive follow up communications from UnitedHealth, Oxford and New York Presbyterian staff. The program came on the heels of data from a Cardiovascular Hospital Artherosclerosis Management Program, which suggested that patients with heart problems who get formal teaching about their conditions at the time of discharge fare 50 percent better than those who get little to no information.
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Modernized Medicare
In February 2005, Oxford announced plans to expand its Medicare Advantage coverage into Westchester County in New York, in addition to Rockland and Orange counties, and New York Citys five boroughs. Thanks to the Medicare act, Oxford increased its service area from seven to 18 counties in less than a year, more than doubling the number of members with access to the OMA products with Medicareeligibility. The expansion raised the number of Medicare-eligible members in the tristate area to more than 73,000.
GETTING HIRED
Track it down
The careers section of Oxfords web site links to the job database of its big brother, UnitedHealth. Opportunities are searchable by location, UnitedHealth entity, or job category, which includes administrative support, business operations, clinical and pharmaceutical, customer service and claims, health care operations, sales and marketing, and technology. The searchable UnitedHealth jobs database can be found at www.unitedhealthgroup.com/careers/search/search_real.htm. Job seekers can go to https://www.oxhp.com/main/careers/index.html to find specific information for Oxford.
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Physicians Mutual Insurance Company

2600 Dodge Street Omaha, NE 68131 Phone: (402) 633-1000 Fax: (402) 633-1096 www.physiciansmutual.com
THE STATS
Employer Type: Mutual Company President and CEO: Robert A. Reed Sr. 2005 Employees: 1,270 2005 Revenue ($mil.): $735.77 Total written premium (Combined Physicians Mutual and Physicians Life Insurance Company)
LOCATIONS
Omaha, NE (HQ) Sales offices across the U.S.
KEY COMPETITORS DEPARTMENTS

Accounting Actuarial Agency Brokerage Claim Services Corporate Services Direct Marketing Group Enterprise Technology Group Government & Industry Information Protection Internal Audit Licensing & Commissions Mail Processing Center Policyowner Services Product Management Purchasing Underwriting Aflac Northwestern Mutual UnumProvident
EMPLOYMENT CONTACT
www.PhysiciansMutual.com/aboutus /career_center
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THE SCOOP
An apple a day
Physicians Mutual Insurance Company was born more than a century ago to insure doctors and dentists, though it has expanded into an insurance provider for people from all areas of life. Physicians Mutual supplies supplemental health insurance that includes hospitalization, disability, long-term care, cancer and Medicare supplements to members nationwide. The companys products are marketed to individual consumers and small business employers. Physicians launched a wholly-owned subsidiary in 1970, Physicians Life Insurance Company, which offers (surprise) life insurance policies. With more than 1,300 agents in around 50 offices nationwide, the company is licensed to operate in all 50 states. Physicians Mutual is the 16th largest individual health insurer in the nation. The company has more than $3.6 billion in life insurance policies in effect. Combined, the two companies assets exceed $2.5 billion. In May 2005, each company received an A rating from A.M. Best Company based on overall performance compared to the norms of the health and life insurance industry. Weiss Research dropped an A+ rating on Physicians Mutual Insurance in August 2005 while younger sibling Physicians Life trailed with an A-. Standard & Poors bestowed each of the two companies with an AA- rating.
Doing business
Physicians Mutual focuses its efforts in middle America, sorting its customers by age: the over 65 group and under 65 group. Company heads said their strategy is concentrated on people who have the means to provide a comfortable life but arent being pursued by agents from other companies. They see a need for competitive options in both the over age and under age markets. As for the over age market, Physicians Mutual sees its biggest challenges include keeping up with changes in the Medicare Modernization Act, one of which primarily is the new Plan D prescription drug plan. The company says that the Physicians Mutual difference is not necessarily defined by the products, since most are standardized, but in the way the company treats its customers.
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To infinity and beyond, metaphorically colored

In October 2004, Physicians Mutual replaced its caduceus symbol (the winged staff of Mercury with two snakes wrapped around it symbolic of medicine) overlaid with a handshake with an infinity symbol. The medical symbol was originally meant to reflect the companys heritage as an insurance company that sold only to physicians, doctors and dentists. The new stylized infinity logo, slanted at a 32-degree angle, is intended to represent the companys everlasting commitment to its policyowners and employees. Isnt that sweet? Getting even deeper, executive vice president and chief marketing officer Robert Reed explained the color scheme to the Omaha WorldHerald: blue equals strong, stable and traditional; gold means successful, financially sound and wise; and teal suggests creativity, innovation and energy. Reed said the re-branding process cost a few hundred thousand dollars, less than one percent of the annual marketing budget. We consider it a long-term investment, Reed said, for years if not decades.
GETTING HIRED
Getting work at Physicians Mutual

The careers area of the web site (www.PhysiciansMutual.com/aboutus/career_center) contains information about working at Physicians Mutual and describes the various job types offered, including accounting, actuarial, agency, annuities/brokerage, enterprise technology group, claim services, direct marketing, corporate services, human resources and policyowner services. The site also offers a list of open job opportunities, as well as information about employee benefits packages.
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Principal Financial Group, Inc.

711 High Street Des Moines, IA 50392 Phone: (515) 247-5111 Fax: (515) 246-5475 www.principal.com
THE STATS
Employer Type: Public Company Stock Symbol: PFG Stock Exchange: NYSE Chairman and CEO: J. Barry Griswell 2005 Employees: 14,507 2005 Revenue ($mil.): $9,007.7
LOCATIONS
Des Moines, IA (HQ) 250 locations worldwide.
KEY COMPETITORS
Aflac Allstate Northwestern Mutual
EMPLOYMENT CONTACT
www.principal.com/careers
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THE SCOOP
The Principals office

An insurance and financial services goliath, The Principal Financial Group employs nearly 14,000 people and offers services in 13 foreign countries, including Australia, China, Japan, Mexico and the U.K. Principal provides a broad range of insurance and financial products and services through a network of subsidiaries, led by the Principal Life Insurance Company. With $163 billion of insurance in force and 4.7 million covered members, Principal Life ranks as the eighth-largest life insurer in the U.S.
But the Principal Financial Group offers far more than insurance. Its pension services include more than 49,000 employers; the group provides administrative services for more 401(k) plans than any other bank, mutual fund or insurance company. The firms asset management division, which manages money for institutional investors, oversees about $195.2 billion in assets (a $28 billion increase from 2004). Through its family of mutual funds, which targets individual investors, the firm ranks as one of the top 100 fund managers in the U.S., with some 800,000 shareholders. And in 2005, Principal was ranked on Fortunes Largest 500 Corporations, coming in at No. 253.
Founded on principle
Founded by Edward Temple as the Bankers Life Association in 1879, the entity originally relied on volunteers to provide low-cost protection to bankers and their families. Gradually offering insurance to non-bankers, the association became a company in 1911. Bankers Life began offering group life insurance in 1941 and added individual accident and health insurance in the 1950s and 1960s amidst rapid growth. In 1986, the holding company was renamed The Principal Financial Group, with its largest unit becoming Principal Mutual Life Insurance. In 1998, the company launched an online banking arm, which had gathered $13.1 million in customer assets by the end of the year. Thanks to an entirely automated processing system, Principal Bank hopes to keep its costs low. The banks assets grew to about $2 billion by June 2004.
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Going international
In February 2004, the company announced it had acquired Hong Kong-based fund manager Dao Heng. By June 2004, Principal ranked as the second-largest pension company in Brazil and had earned the same distinction for new annuity sales in Chile. By July 2004, the company had nearly five million international customers, an increase of 35 percent from 2002. Taking a cue from its success in the domestic retirement segment, in December 2004, the firm announced that it had agreed to buy the Chicago-based pension and retirement business of Dutch Bank ABN AMRO. While financial terms were not disclosed, the acquisition added about 300 employer-sponsored retirement plans to its administration, which represents approximately $3.6 billion in account values. Earlier, in October 2004, the firm had also announced its intention to acquire a majority interest in Columbus Circle Investors, a Connecticut-based asset management firm specializing in growth equities, with more than $3 billion in assets under management. Principal entered a joint venture with China Construction Bank (CCB), the countrys third-largest, in August 2005. Long enamored with the growing pension and mutual fund markets in China, the business represented Principals first entry into the country. Under the agreement, Principal would take 25 percent interest in CCBPrincipal Asset Management Company. Chinas mutual fund management market doubled in 2004 to nearly $40 billion in assets under management and is anticipated to hit $60 billion by 2008.
Record numbers
Principal brought in strong results in 2005, its seventh consecutive year of record operating earnings, up some 13 percent from 2004 to $862 million. Assets under management grew to $28 billion, and the company also celebrated a record net income available to common stockholders of $901.3 million. Each of the companys primary retirement and investment products also hit record sales in 2005: $3.4 billion for mutual funds; $2 billion for individual annuities; and $6.1 billion for organic full service accumulation.
Trimming the fat

While the turn of the century for the Principal Financial Group has been marked by important acquisitions, it has been equally notable for the firms sale of non-core parts of its business. Like many of its competitors, Principal was rocked by the
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WorldCom and Enron scandals and suffered from payouts in the wake of the September 11 World Trade Center attacks. As a result, the companys revenue fell flat for 2002 and its net income was down in 2002, from $359 million in 2001 to $142 million. Principal narrowed its focus and trimmed some fat when it sold the majority of its BT Financial Group subsidiary as well as its retail mortgage banking operations. Not content with the sale of the retail mortgage segment, Principal sold off the entire remains of its mortgage banking business to rival financial services giant Citigroup in July 2004. The $1.27 billion deal cemented Principals focus on retirement products.
Eating oatmeal (in principle)

Principal scored a skyscraper! In September 2004, the company passed $120 million to Prudential Real Estate Investors for the Quaker Foods headquarters, a 416,000square-foot expanse on the edge of Chicagos West Loop. Pundits saw the deal as further evidence of strong investor demand for high-credit tenants. As part of the agreement, Quakers parent company, PepsiCo Inc., signed up for an additional 15year lease.
GETTING HIRED
Report to the Principals office!

The careers section of Principals web site (www.principal.com/careers/index.htm) describes various career paths available at the company, including actuarial/accounting, banking, clerical/administrative, compliance/legal, human resources, information technology, insurance/underwriting, investments, project management and sales/marketing. Job seekers are encouraged to use an online application procedure allowing them to create an account and register their resumes with the company. A searchable database also enables potential applicants to look for job openings based on employment category and office location.
Recognition proposition
PLANSPONSOR magazine placed Principal at the top spot in nonqualified deferred compensation record keeping in its December 2005 issue, according to the publications deferred compensation survey. Additionally, Fortune placed Principal in the No. 86 slot on its 2006 list of the 100 Best Companies to Work For. Fortune
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took time to mention that some two-thirds of Principal employees take advantage of flexible scheduling options, another 20 percent have compressed workweeks, and 17 percent spend at least 20 percent of their weekdays working from home. Fortune didnt stop therePrincipal appeared fifth in the periodicals list of Life and Health (stock) companies, and sixth in Most Admired Companies within the Life and Health Insurance Industry. Forbes put Principal at No. 130 on its Platinum 400 list of Americas Best Big Companies in its 2006 rankings. Not to be outdone, InformationWeek recognized Principal at N0. 24 on its 2005 Top 500 Most Innovative Users of Technology register.
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The Progressive Corporation

6300 Wilson Mills Road Mayfield Village, OH 44143 Phone: (440) 461-5000 Fax: (440) 603-4420 www.progressive.com
THE STATS
Employer Type: Public Company Stock Symbol: PGR Stock Exchange: NYSE Chairman: Peter B. Lewis President and CEO: Glenn M. Renwick 2005 Employees: 28,336 2005 Revenue ($mil.): $14,303.4
LOCATIONS
Mayfield Village, OH (HQ) Austin, TX Colorado Springs, CO Phoenix, AZ Sacramento, CA Tampa, FL
KEY COMPETITORS
GEICO Liberty Mutual State Farm
EMPLOYMENT CONTACT
jobs.progressive.com
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Progressive Corporation, The
THE SCOOP
Progress report
The Progressive Corp. is an insurance holding company with a total of 70 subsidiaries. The company and its affiliates provide personal auto and other varieties of property-casualty insurance packages throughout the United States. The company maintains its non-insurance subsidiaries primarily to support its insurance and investment operations. Progressive has three main business segments: personal lines, commercial auto and other business. Progressive isnt afraid to stick its neck out the company has soared as a leading provider of nonstandard, high-risk personal auto insurance, in addition to other personal-use vehicle policies such as motorcycles, ATVs and snowmobiles. Progressive currently stands at No. 3 in the rank of Americas largest auto insurance providers (trailing State Farm and Allstate), but states publicly that it expects to head the list by the end of the 2000s.
Looking forward
Way back in March 1937, two young lawyers, Joseph Lewis and Jack Green, got together and started the Progressive Mutual Insurance Company to provide auto insurance. The company came up with some ideas that hadnt been tried yet in the insurance industry, including allowing customers to pay their premiums in installments and drive-in claims service. In 1955, after the death of co-founder Joe Lewis, Jack Green became CEO and Peter Lewis, Joes son, began his career with Progressive. In 1956, the company formed Progressive Casualty Company to write auto insurance for high-risk drivers. The company continued to grow in the 1960s and formed the Progressive Corporation. In 1965, Peter Lewis took over the reins of the company when he assumed the title of CEO, a title he still held when he celebrated his 45th anniversary with the company in 2000. The company went public in 1971 and moved its headquarters to Mayfield Village, Ohio. Then, in 1987, Progressive surpassed the $1 billion mark in premiums and the companys stock was listed on the New York Stock Exchange. In 1992, the company was recognized as being the nations largest writer of private passenger auto insurance through independent agents in the United States. Progressive changed its focus from nonstandard insurance in 1993, offering its products to all drivers, and in 1994, the company surpassed $2 billion in premiums. At the end of 2005, the company stood as the countrys third largest insurance company, with $14.303 billion in sales in 2005, up from $13.782 billion in 2004, and over 28,000 employees.
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A history of firsts
As evidenced by its name, Progressive has traditionally been, well, progressive in its business practices. Some of its most recent innovations include becoming the first auto insurer to open claims service centers that combine retail-like front office space with attached garage space where claims representatives inspect vehicles and prepare estimates. In 2003, Progressive began selling the first-ever insurance policies for owners of Segway Human Transporters, the self-balancing, emissions-free transportation devices. In 2001, Progressive became the first auto insurance company to receive a wireless payment from a customer using a personal digital assistant device and in 2000, Progressive became first company to sell motorcycle, boat and personal watercraft insurance over the Internet. The company also became the first to offer instant online quotes for recreational vehicle (RV) insurance.
Doing business personally

Progressives personal lines segment writes insurance for passenger cars, motorcycles, RVs, mobile homes, watercraft, snowmobiles and similar items. The segment accounted for about 84 percent of the companys total net premiums written in 2004. Although homeowners insurance used to be handled through this part of the company, Progressive stopped writing new homeowners insurance policies in the United States in May 2002. The company claimed that homeowners insurance didnt meet its goal of attracting more standard and preferred auto business by packaging a homeowners product with its auto product. Prior to being discontinued, the homeowners product accounted for less than 1/10th of 1 percent of personal lines premiums written. The companys commercial auto business unit writes primary liability, physical damage and other auto-related insurance for cars and trucks owned by small businesses. The unit represented about 11 percent of the companys total net premiums in 2004.
Other businesses
Progressives other lines of business include the Lenders Collateral Protection Group (LCPG), Professional Liability Group (PLG) and motor carrier business unit, which are organized by customer group. These businesses accounted for only about 1 percent of total revenue in 2002. LCPG provides damage insurance to protect the commercial or retail lenders interest in collateral, which is not otherwise insured
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against these risks. The principal product the unit offers is collateral protection insurance for automobile lenders, which is sold to financial institutions and/or their customers. PLGs principal customers are community banks. Its principal products are liability insurance for directors and officers and employee dishonesty insurance. PLG represented less than one-fourth of 1 percent of the companys total 2002 net premiums written.
On the Web
Progressive was one of the first auto insurance companies to step into the world of the web in 1995, when it first launched its corporate web site, autoinsurance.com, the original URL of The Progressive Corporation. It didnt take the company long to make itself at home, though, as by 1997 the company introduced the progressive.com URL and was offering real-time online sales of auto insurance through the site. The company has been rated the No.-1 auto insurance web site eight times in a row by Gomez, an e-commerce authority. But Progressive didnt stop there. The company decided that its not enough that you can buy insurance onlineyou should be able to manage your policy, by making payments and changing coverages, whenever you want to. With an addition to the site called Personal Progressive (www.personal. progressive.com), now customers can do just this, as well as finding an independent agent/broker.
Katrina costs
Progressive got a taste of the hurricane season with costs related to Hurricane Katrina in August 2005. The company saw revenues of $1.12 billion in August (compared to $1.06 billion during the same month a year before), but net income fell 43 percent to $56.8 million (29 cents per diluted share) compared to $100.3 million (46 cents per diluted share) in August 2004. The difference, company officials said, came from losses or loss expectations-around $119.5 million from Katrina compared to only $13.3 million from Hurricane Charley in 2004. The company put together seven drive-in claims sites on the Gulf Coast, where around 300 additional claims representatives from across the nation were stationed temporarily. Before Katrina-related income woes, Progressive CEO Glenn Renwick enjoyed a 40 percent income bump, pocketing $10.5 million in cash, restricted stock and benefits in 2004 (compared to 2003s haul of $7.5 million). The major compensation boost came from restricted stock, as Renwick took home some $3 million more in stock in 2004 than he had the year before.
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Risk assessment
Progressive has long sought unique paths to determining risk instead of the typical categories used by most major insurance carriers (age, sex, location). In the late 1990s, Progressive experimented with global positioning services mounted onboard (consenting) cars driven by its customers to observe their driving patterns. Stage two of the tests occurred in 2004, when Progressive offered 5,000 Minnesota customers with doohickeys that connect to their cars onboard diagnostic ports to record data on how far the cars are driven, and at what time of day and what speed they travel. The objective, as Progressive explains, is to get a precise understanding of a drivers behavior, which can lead to reduced costs for safety-conscious travelers. And then everybodys happy. The program, called TripSense, employs a free plug-in gadget that customers can use to download readings by transferring it from their car to their personal computer, examining what rate benefits they may have qualified for. The driver can then decide to send the information along to Progressive over the net, or keep it private.
GETTING HIRED
Progressive professions
The careers section of Progressives web site (jobs.progressive.com) offers job seekers the ability to create an account and upload their resumes to apply for positions online. The various career paths available at the company include claims, IT, customer service, inside sales and professional positions that assist customers by offering superior buying, ownership and claims experiences. Progressive employees work out of six major locations across the country: Austin, Cleveland, Colorado Springs, Phoenix, Sacramento and Tampa. Additionally, there are links for students and recent graduates to find information of recruiting events where they can speak with Progressive representatives, as well as internships offered.
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The St. Paul Travelers Companies, Inc.

385 Washington Street St. Paul, MN 55102 Phone: (651) 310-7911 Fax: (651) 310-3386 www.stpaultravelers.com
THE STATS
Employer Type: Public Company Stock Symbol: STA Stock Exchange: NYSE Chairman and CEO: Jay S. Fishman 2005 Employees: 31,900 2005 Revenue ($mil.): $24,365
LOCATIONS
St. Paul, MN (HQ) Hartford, CT Field offices in every U.S. state, the U.K., Ireland, Canada and Mexico.
KEY COMPETITORS
AIG Chubb State Farm
EMPLOYMENT CONTACT
www.stpaultravelers.com/careers/ind ex.html
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THE SCOOP
St. Paul Travelers twin cities, St. Paul and Hartford

The St. Paul Travelers Companies, Inc. (STA) is the second-largest underwriter of commercial property, casualty and personal insurance in America, trailing only AIG. STA was born on April Fools Day, 2004 (no joke), with a merger between The St. Paul Companies, Inc. and Travelers Property Casualty Corp. The companys official headquarters is in St. Paul, Minn., but it maintains a major office complex in Hartford, Conn., the former Travelers HQ. The companys business is divided into three segments: commercial, specialty and personal. The commercial and specialty divisions provide property and casualty insurance to clients through independent agencies and brokers. The personal segment writes property and casualty insurance covering personal risks, distributed through independent agents and sponsoring organizations. In 2005, STA counted some $113 billion in total assets, shareholders equity of $22 billion and a total capital base of $28 billion. With about 31,900 employees, STA ranks at No. 85 on the Fortune 500 list of Americas largest companies.
Hometown history
St. Paul Companies was established in St. Paul, Minn., at a time when that area was the Northwest frontier of the U.S. Local businesses were having trouble getting eastern insurers to speed up payments on claimscommunication with far away territories was still slow in the mid-1800s. Incorporated in 1853 as the Saint Paul Fire and Marine Insurance Company, the insurer covered its small towns buildings, which were mostly made of wood and highly susceptible to fire damage. The Panic of 1857, one of the most severe economic crises in American history, forced 47 mutual insurance companies in the nation to shut down. St. Paul survivedbut only by closing its books, hawking its office equipment and reorganizing in 1865 as a stock company. Within years, the company had expanded its business across the country. It was financially sound enough to pay out all claims from two disasters: the 1871 Chicago fire and the San Francisco earthquake of 1906. Over the next century, St. Paul Companies began reaching out to overseas markets and broadening its services at home in the U.S.
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STA came into existence when The St. Paul Companies merged with Travelers Property Casualty Corp. in 2004. Travelers had been a subsidiary of Citigroup until its IPO in early 2002.
Limping out of the gate

In 2005, the company sold its majority stake in Nuveen Investments, a profitable money manager acquired in 1974, for around $2.4 billion in order to raise capital and boost reserves that had shrunk since the merger.
Diving profits
Net profits dropped 41 percent for STA in the fourth quarter of 2005 as the company placed $830 million to its reserves for asbestos claims and raised predictions on hurricane costs. Executives said that underlying earnings stayed strong in 2005 and appear to continue that way in 2006, though they had to answer to rumors that the company was underpricing its auto policies. STAs fourth-quarter net income in 2005 hit $179 million (26 cents per share) compared to $303 million (44 cents per share) during the same period a year before. Operating income (excluding realized investment gains) dipped 45 percent to $151 million. The company doled out $435 million due to the hurricane season in the fourth quarter, of which $236 million was due to third-quarter hurricanes Katrina and Rita, about which STA had severely miscalculated (though, understandably so). Full year revenue rose to nearly $24.4 billion in 2005.
Job growth
In January 2006, STA announced plans to add 1,000 employees across the U.S. in 2006 and hinted that a substantial number would be added in Hartford. Travelers has around 5,900 employees in Connecticut. The good news didnt come aloneit occurred on the same day that STA informed nearly 100 IT employees in Hartford that they would likely lose their jobs to outsourcing, with a dozen cuts expected at the St. Paul headquarters. At the time of the announcement, STA had 500 IT workers through outsourcing agreements, primarily in India, with plans to add another 500 over the next one to two years.
Hurricane response
STA estimated that it would pay out over $3.3 billion in gross claims from hurricanes Katrina, Rita and Wilma, one of the highest tolls in the industry after the historic
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2005 hurricane season. Jay Fishman, chairman and CEO of STA, told investors in December 2005 that the company had no plans to vacate hurricane-stricken regions, but would be taking measures to limit future exposure. Fishman said STA would be analyzing its risks and potential returns, raising rates and deductibles where appropriate. The company would also redefine its coastal risk, looking again at whether, for example, swampy areas actually work as an effective buffer against storm damage. STAs guidelines direct that it conduct business so that an occurrence with a one percent chance of occuring shouldnt wipe out more than a quarters worth of earnings. Like many of its competitors, STA reduces the chances of such an event by buying reinsurance, ceding some premiums to other companies that take on some of the exposures.
Before Katrina made landfall, SPT sent several mobile claims centers to surrounding states, custom built RVs with wireless laptops that allowed workers to access customers information, verify claims and issue checks on the spot. The technology, known as EBDO (essentially wireless broadband), linked the computers to STAs main server through cell-phone frequencies.
Happy birthday!
The St. Paul took a unique approach to its 150th anniversary in 2003. It launched a special charitable giving program, called Thanks a Million, that let every one of its employeesall 10,000 of them, at the timedonate $100 to the charity of their choice. The effort net a total of $1 million, which was disbursed to almost 1,800 nonprofits around the world. The list included nationally known childrens organizations, a greyhound racing dog rescue group, a prairie chicken research society, and a Scottish and Celtic dance instruction association. The biggest grantreceiver was the Susan G. Komen Breast Cancer Foundation, with 532 employee donations. The Childrens Cancer Research Fund received 440 employee donations, and the United Negro College Fund got 239. Eighty-five percent of The St. Pauls employees participated in the program.
GETTING HIRED
Traveling to St. Paul

The careers section of STAs web site (www.stpaultravelers.com/careers/index.html) hosts a database of employment opportunities at the firm, searchable by geographic
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location or job category, which can include actuarial, administrative, business analyst, claims, corporate services, executive, finance and accounting, investments, legal, marketing and sales, product management, policy services, risk control and underwriting. Job seekers can apply for positions online.
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State Farm Mutual Automobile Insurance Company

1 State Farm Plaza Bloomington, IL 61710 Phone: (309) 766-2311 Fax: (309) 766-3621 www.statefarm.com
THE STATS
Employer Type: Private Company Chairman and CEO: Edward B. (Ed) Rust Jr. 2005 Employees: 79,200 (plus 16,700 agents) 2004 Revenue ($mil.): $58,800
LOCATIONS
Bloomington, IL (HQ) 25 operations centers across the U.S. and Canada.
KEY COMPETITORS
AIG MetLife Prudential
EMPLOYMENT CONTACT
statefarm.com/careers/index.htm
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THE SCOOP
Like a good neighbor

State Farm is the leading auto and home insurer in America. More than 39.7 million cars and almost 15.5 million homes in the U.S. and Canada are covered by State Farm policies. In fact, one out of every five automobiles in the U.S. is insured by State Farm, making it the nations No.-1 car insurer. State Farm is also the leading home insurer in the U.S. The company runs over 755 claim offices nationwide to process the 71.6 million State Farm policies currently in force. State Farm also offers other kinds of insurance, including life and health policies. And now, following its expansion into the financial services industry, the company also offers banking services and mutual funds.
Small-town beginnings
State Farm began in 1922 in Bloomington, Ill., as a small farm mutual auto insurer. It was founded by George Mecherle, a retired farmer who believed farmers should pay less for their auto insurance because they drove less and had fewer losses than people living in cities. By 1942, the company had grown into the nations largest auto insurer, a ranking it still holds. In 1964, it became the No.-1 home insurer in the country. Today State Farm holds more than 70 million auto, home, life and health insurance policies in the U.S. and Canada, and handles over 30,000 insurance claims daily. In recent years, the company branched out into financial services and now offers customers banking products (including loans) and mutual funds. As of 2005, State Farm employed 79,200 people, including nearly 17,000 agents.
Tough times
In 2004, State Farms net worth increased by $6 billion to $46.3 billion, with its property and casualty companies reporting a pretax operating profit of $5.5 billion, including a gain in underwriting of $2 billion. Total revenue for State Farm, including premium revenue, earned investment income and realized capital gains (losses), equaled $58.8 billion for 2004 compared to a 2003 figure of $56.1 billion. After-tax net income from all sources of $5.3 billion compared to a net income of $2.8 billion in 2003. Auto business represented 65 percent of property-casualty companies combined net premium, with earned premiums of $31.5 billion, an increase of 1.4 percent over 2003. State Farms life affiliates added $30 billion of
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total life insurance in force during the year, bringing the companies total insurance in force to $571 billion at the close of 2004.
Legal victory
In August 2005, the Illinois Supreme Court overturned a $1 billion class-action judgment against State Farm, putting aside a ruling against the company for using lower-cost generic auto parts to fix damaged cars rather than more costly manufacturer equipment. Residency became a prominent issue in the reversal. The justices held that the Illinois Consumer Fraud Act applied primarily to Illinois residents making transactions in the state. The decision reversed a Williamson County Circuit Court jury and ruling in 1999 that State Farm defrauded policyholders by repairing their vehicles with less expensive body parts. In 2001, the Illinois Appellate Court upheld the decision, but reduced the original award from $1.2 billion to $1.056 billion. The August 2005 ruling found that the plaintiffs had not suffered any significant harm from having the parts installed. After the original ruling held that State Farm had failed to honor contracts with 4.7 million customers who received generic parts, aftermarket parts makers took a serious blow and triggered State Farm to stop using generic products.
Atomic storms
Still, there was little to be done about natural disasters, as State Farm learned from the 2005 hurricane season. Sen. Trent Lotts December 2005 lawsuit notwithstanding, Mississippis insurance commission said in late November 2005 that insurers had paid $5 billion to policyholders. Estimates of loss in the two states are up to $60 billion. State Farm, of course, had more than a few automobiles to deal with in the wake of Katrina. In September 2005, State Farm recorded 48,140 auto insurance claims in Louisiana, around 62 percent of the companys auto insurance claims from the four states afflicted by the storm. State police estimated that over 200,000 cars were lost in Louisiana, and owners would likely be footing their own bill to buy new cars. Basic liability insurance or collision coverage wont cover a car that is lost in a storm. Those with comprehensive coverage (often required if a car is financed) stand the best chance of getting reimbursed for cars that were lost in the storm.
Beyond insurance
State Farm keeps busy with more than insurance. The company sponsored the PBS television show This Old House in 2005 for the 14th year. State Farm is very
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involved in sporting event sponsorship, in cold weather (the U.S. Snowboard Association, the U.S. Figure Skating Championships, the Womens Basketball TipOff Classic) and warm (the State Farm Bayou Classic football game, the LPGA State Farm Classic). State Farm also uses its Good Neighbor Citizenship Program, to provide resources to bringing up achievement levels within the nations schools, homes and building strong communities. Additionally, State Farm participates in a number of partnerships, including Partners for Child Safety, Youth Service America, Kids Voting USA and the National Service Learning Partnership.
GETTING HIRED
State Farm is where?

The careers section of State Farms web site (statefarm.com/careers/index.htm) offers links to applying for becoming an agent or joining the company in a corporate function. The site also lists a number of recruiting events across North America for college students and recent graduates. State Farm links to its job opening on the Hotjobs web site, and lists job types both at regional departments throughout the U.S. and parts of Canada, and at its corporate headquarters in Bloomington, Ill. Job opportunities can include accounting, administrative services, agency, claims, human resources, insurance support centers, marketing, mutual funds, systems/IT and underwriting.
Minority awards
State Farm has received some notable awards in 2005 for its employee diversity. Hispanic magazine included the insurance company on its 2005 Corporate 100 list for creating business and job opportunities for Hispanic Americans, the 13th consecutive year of recognition. The Korean American Coalition awarded State Farm with its 2005 Corporate Stewardship Award, and the Southeast Asian Resource Action Center bestowed its Lifeline Award on the company. G.I. Jobs Magazine put the company on its Top 25 Most Military-Friendly Employer list, and LATINA Style Magazine placed State Farm on its Top 50 Best Companies for Latinas to Work For.
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Thrivent Financial for Lutherans

625 4th Avenue South Minneapolis, MN 55415 Phone: (800) 847-4836 www.thrivent.com
THE STATS
Employer Type: Not-for-Profit Company Chairman, President and CEO: Bruce J. Nicholson 2005 Employees: 2,616 2005 Revenue ($mil.): $4,397
LOCATIONS
Minneapolis, MN (HQ) Appleton, WI Field offices around the U.S.
KEY COMPETITORS
MetLife New York Life State Farm
EMPLOYMENT CONTACT
www.thrivent.com/careers/index.html
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THE SCOOP
Aid for Lutherans

Minnesota-based Thrivent Financial for Lutherans and its affiliate companies hold more than $67.5 billion in assets under management, including life insurance, annuities, mutual funds, bank and trust services, and other financial tools and resources for Lutherans across the U.S. The company also has a praiseworthy $157.3 billion life insurance business. Thrivents prosperity, at least in terms of size and assets, is relatively new: In 2001, the Aid Association for Lutherans of Appleton, Wisc., merged with Lutheran Brotherhood of Minneapolis, and the two were reborn as Thrivent Financial for Lutherans. The fraternal benefit society boasts some three million members. Together with its members, the organization generated an estimated $429.3 million in charitable donations through fundraising, communitybased service and other charitable activities in 2005. Thrivent is a truly unique entitya not-for-profit Fortune 500 financial services organization.
Christening a new group

The union between the two groups is just the latest manifestation of a long tradition. At the turn of the 20th century, two organizations sprouted up in the Midwest to offer life insurance to fellow Lutherans. The Aid Association for Lutherans was incorporated as a fraternal benefits society in 1902, after three members of the St. Paul Lutheran Church in Appleton went door-to-door to collect the 500 needed signatures for the charter. The other business was formed in Minneapolis in 1917 as a nonprofit mutual aid society dubbed Luther Union, which later merged with the Lutheran Brotherhood of America to become, simply, Lutheran Brotherhood. The two parent organizations set out on parallel trajectories, issuing their own magazines for members, hitting the $1 billion mark for life insurance policies in force in the late 1950s, expanding the kinds of policies they offered and introducing mutual funds to their portfolios before their 2001 marriage made Thrivent Financial the biggest fraternal benefit society in the world.
Reveling in its roots

The merger meant more muscle for the religious-based organization, and that left it striving for more than one higher purpose. We do a tremendous amount of charitable giving and outreach, but we are absolutely going to be a competitive
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financial services organization in the process. Thats the dual challenge that we are excited about, said Pam Moret, senior vice president of marketing, in an Annuity Market News article in early 2003. She said Thrivent had embarked on a plan that included both improving its products and enlarging its sales and distribution force, which Moret predicted could eventually double in number. One quarter of the estimated 12 million Lutherans in the U.S. are members. (To buy the organizations banking products or mutual funds, you dont have to be Lutheran, unlike the terms of its insurance packages.) That means theres still plenty of room to grow while staying within the Lutheran demographic.
Gaining ground
Following its merger in 2003, Thrivent Financial began to restructure both its corporate operations and its field distribution network. The move helped cut $100 million off the organizations annual expenses, in part through corporate layoffs, attrition and other cost-saving plans. Thrivent also realigned its financial representatives into 30 new regional financial offices, developing two new enhanced roles for them: financial consultant and senior financial consultant, both of which require licensing, maintaining production levels and exemplary conduct. Nearly 600 of Thrivent Financials 2,600 reps have become financial consultants or senior financial consultants. The reorganization paid off as Thrivents net income rose to $498 million in 2005, and its adjusted statutory surplus reached an all-time high of $4.2 billion at the end of the year. Thrivent has also embarked on an aggressive hiring campaign aimed at bringing in more financial representatives, and, in 2006, announced that its now hiring non-Lutheran financial representatives to advise its members.
Keeping the faith

The organization maintains close ties with, and supports, the communities it calls home for its operations center (Appleton, Wisconsin) and its corporate headquarters (Minneapolis, Minnesota). In 2005, Thrivent provided community grants totaling over $4.1 million to nonprofit organizations in Appleton and Minneapolis. Additionally, Thrivent provided over $6.1 million through employee gifts and matching corporate contributions. Major employee volunteer service projects included working on houses with Habitat for Humanity (more on this later), feeding the hungry at House of Charity, mentoring youth through the Childrens Home
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Society, supporting families and nonprofits through the Salvation Army and 12 Days of Christmas. All Thrivent Financial members are encouraged to participate in local chapters (service groups) led by member volunteers. The organization provides both funding and program support to these chapters so they can perform community service projects to benefit individuals, families, local nonprofits, community resources (such as parks) and Lutheran institutions. Elected chapter leaders choose these beneficiaries. In 2005, Thrivent members devoted more than 21 million hours in volunteer services (collectively, of course!) through 94,000 chapter activities, which included fundraising to help those devasted by catastrophic medical bills or natural disasters, stocking food shelves, refurbishing emergency shelters and cleaning parks, among many others.
Building Habitats
Thrivent participates heavily in the Habitat for Humanity program, with grants expected to fund the building of 312 houses nationwide in 2006. The mark means a 6 percent increase for the housing charity, along with recruiting some 70,000 new volunteers and donations from 1,364 local chapters of Thrivent members (customers of the financial products firm). Thrivent plans to support Habitat with upwards of $105 million over four yearsthe largest charitable gift ever given or received by either of the faith-based nonprofit organizations, which have been partners for 14 years. The companys ancestral home states will receive the most attention in 2006, with 33 going up in Minnesota and with Wisconsin receiving 36 homes. The company has also started funding volunteers for short-term overseas house-building trips in countries such as Romania, Uganda, New Zealand and Ecuador. The Thrivent Builds initiative holds some impressive components, including: up to 500,000 volunteers (mostly from among Thrivent members), and sponsorsing a touring 48-foot semi-trailer exhibit created to motivate volunteers and donors. The organization says its goal is to help build up to 500 homes annually in the U.S. by 2008. In 2006, for example, Thrivent counts 312 homes, with more than that number scheduled for 2007, and 500 by 2008.
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GETTING HIRED
Thriving at Thrivent
The careers section of Thrivents web site (www.thrivent.com/careers/index.html) offers four different searchable job databases: corporate opportunities at the main offices in Appleton, Wisconsin, and Minneapolis, Minnesota; financial representative opportunities and regional financial office opportunities (both based in the field); and financial internships. All jobs are searchable by job title and geographic location.
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UnitedHealth Group Incorporated

UnitedHealth Group Center 9900 Bren Road East Minnetonka, MN 55343 Phone: (952) 936-1300 Fax: (952) 936-7430 www.unitedhealthgroup.com
THE STATS
Employer Type: Public Company Stock Symbol: UNH Stock Exchange: NYSE Chairman and CEO: William W. McGuire 2005 Employees: 55,000 2005 Revenue ($mil.): $45,365
LOCATIONS
Minnetonka, MN (HQ) Offices across the U.S. and worldwide.
KEY COMPETITORS
Allstate Prudential State Farm
EMPLOYMENT CONTACT
www.unitedhealthgroup.com/careers/ career/career.htm
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THE SCOOP
Big business
UnitedHealth Group has been making health care services accessible and affordable for customers for over three decades. The company offers employer business services, health care services, knowledge and information services, and specialized care services with health and wellness benefits and resources. The second largest health insurance company in America (behind WellPoint), UnitedHealth works through four business segments. Its Health Care Services segment manages HMO, PPO and POS (Point-of-Service) plans, in addition to various Medicare and Medicaid options. UnitedHealths Ovations unit serves AARP members, while Uniprise provides health plans for large companies. Specialized Care Services offers vision, dental and other products. Ingenix provides health information consulting and publishing along with clinical research and pharmaceutical marketing services. Of the companys entire 2004 sales, around 84 percent came from health care services. UnitedHealth was ranked No. 40 on Fortune magazines 2005 list of the 500 largest U.S. companies based on 2004 revenue, and No. 5 on BusinessWeeks Top 50 of 2005 best performing large public companies. (The companys revenue for the fiscal year 2005 topped $45 billion.) Additionally, UnitedHealth ranked No. 1 on Fortunes list of the Most Admired Health Care Companies, a list on which it has ranked first or second since 1995. UnitedHealth also ranked No. 1 on the 2005 Barrons 500, which grades the performance of the largest companies in the U.S. and Canada based on revenue. FMR owns almost 10 percent of the company, and Barclays Global Investors, Marisco Capital Management and Janus Capital Management each own more than 5 percent.
A healthy start
The company got its start in 1974 when a group of physicians and health care professionals formed Charter Med Inc. to expand health coverage options for consumers. Three years later, the newly formed United HealthCare Corp. acquired Charter. In 1979, UnitedHealth established the first network-based health plan for senior citizens, and took part in the earliest experiments with providing privatemarket alternatives for Medicare. Within five years of its health plan launch, it became a publicly traded company. UnitedHealth incorporated its first pharmacy benefits management company, Diversified Pharmaceutical Services Inc., in 1988, which was later sold in 1994 to SmithKline Beecham for $2.3 billion. UnitedHealth
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acquired The MetraHealth Companies, a privately held entity formed by the Travelers Insurance Company and Metropolitan Life Insurance Company, in 1995 for $1.65 billion. AdjudiPro, UnitedHealths patented artificial intelligence system, was entered into the permanent research collection of the Smithsonian Institution in 1996, and awarded the CIO Enterprise Value Award. Two years later, United HealthCare Corp. changed its name to UnitedHealth Group, and launched a strategic reorganization plan dividing the company into five independent but strategically linked business segmentsUnitedHealthcare, Ovations, Uniprise, Specialized Care Services and Ingenix.
Acquisition overload
On the acquisitions front in April 2004, the company agreed to purchase Oxford Health Plans for almost $5 billion in cash and stock and was also rumored to be acquiring Hunt Valley, Md.-based Fidelity Insurance Group, in an effort to further strengthen its presence in Maryland, though the deal never came to fruition. In May, the company jumped across the Atlantic, expanding its connection with Britains National Health Service as part of a plan to eventually provide health care services for European governments. In November 2004, UnitedHealth purchased Definity Health Corp., a privately held insurer in St. Louis Park, Minn., for $300 million.
Cutting costs and gaining revenue

As part of an increased effort to reduce costs due to misuse and overuse of diagnostic imaging technology, UnitedHealth launched a plan in 2005 to encourage primary care doctors to make referrals for diagnostic imaging based strictly on widely accepted criteria. The company says that 30 percent to 40 percent of all imaging procedures are ordered inappropriately and that it spends roughly $3.5 billion each year on such procedures. Also in January, UnitedHealth embarked on two new plans to reach out to customers. The first provided health care benefits to small businesses through a partnership with a subsidiary of American Express. Amex cardholders were able to get savings on UnitedHealth discount cards, in addition to access to preferred pricing on small group health insurance. They could also buy health care products using American Express cards, a feature previously not allowed by UnitedHealth. The second, called the
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National Health Access initiative, was designed to provide affordable health insurance for up to three million uninsured Americans through a partnership with the Washington, D.C.-based HR Policy Association and more than 50 Fortune 500 companies. The 2005 fiscal year saw further growth, particularly in the fourth quarter, where earnings increased by 18 percent to $870 million, and the company raised its outlook for 2006 as seniors continue signing up for new prescription drug benefits from Medicare. Year-end revenue hit $45.4 billion, up from a 2004 revenue of $37.2 billion the year before. The financial data, released in January 2006, did not include results from PacifiCare Health Systems, which UnitedHealth acquired at the years close. PacifiCares addition is likely to boost 2006 revenue to between $70 billion and $71 billion.
Keeping the Pacific peace

UnitedHealths $8.1 billion acquisition of PacifiCare didnt happen overnight. State regulators in California finally approved the deal in December 2005 after executives of both companies assured officials that the costs would not involve PacifiCare customers. State Insurance Commissioner John Garamendi outlined a pledge by UnitedHealth to provide $50 million in charitable donations and $200 million in investments to improve medical services for low-income people as the clincher for the deal. That $250 million equated roughly to the amount the merged entity would spend on bonuses, accelerated stock options and other senior management perks.
Waiting on Medicare
UnitedHealth spent upwards of $20 million in the fourth quarter of 2005 to prepare for sales of the new Medicare prescription drug benefit in an environment of serious competition. The spending would be just a drop in the bucket compared to sales potentialthe company anticipates that the drug plan, known as Medicare Part D, could generate up to $3 billion in 2006 revenue and some three million new customers. UnitedHealth plans to offer the drug coverage in a co-branded product with the AARP. The companys CEO William McGuire said that UnitedHealths bottom line would increase by around 5 cents a share in 2006 if the Medicare Plan D projections came to fruition. Without factoring in Plan D, its earnings projection for 2006 is $2.85 per share. In July 2005, the company announced plans to hire 600 people in preparation for the coming of Plan D.
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Community giving
UnitedHealth funds the United Health Foundation, an independent, private, nonprofit foundation that supports health and medical decisions made by doctors, community leaders and individuals to create healthier people and communities. The Foundation issues an annual report, Americas Health: State Health Rankings, a comprehensive state-by-state analysis of health status across the nation. The Foundation also provides funding to the Center for Infectious Disease Research & Policy and the Childrens Health Fund, among numerous others.
GETTING HIRED
Unite with UnitedHealth

UnitedHealths site (www.unitedhealthgroup.com/careers/search/search_real.htm) provides a database listing all available positions within the company and its subsidiaries. Jobs are searchable by location, UnitedHealth entity, or job category, which can include administrative support, business operations, clinical and pharmaceutical, customer service and claims, health care operations, sales and marketing, and technology.
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Unitrin, Inc.
1 E. Wacker Drive Chicago, IL 60601 Phone: (312) 661-4600 Fax: (312) 494-6995 www.unitrin.com
THE STATS
Employer Type: Public Company Stock Symbol: UTR Stock Exchange: NYSE Chairman, President and CEO: Richard Vie 2005 Employees: 8,200 2005 Revenue ($mil.): $3,048.1
LOCATIONS
Chicago, IL (HQ) Dallas, TX Jacksonville, FL Los Angeles, CA Philadelphia, PA Sacramento, CA St. Louis, MO
KEY COMPETITORS
GEICO Nationwide State Farm
EMPLOYMENT CONTACT
jobsearch.unitrin.careers.monster.com
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Unitrin, Inc.
THE SCOOP
U-N-I-T Rin
The Chicago-based Unitrin, Inc. is a $3 billion financial services company providing a variety of insurance and consumer finance products for individuals, families and small businesses. The company employs around 8,500 associates and manages nearly $9 billion in assets. Unitrin serves more than 110,000 consumer finance customers, accounting for $1 billion in consumer finance receivables. Unitrin is made up of three business segments. Unitrin Property and Casualty Insurance houses Kemper Auto and Home, Unitrin Specialty and Unitrin Business Insurance, which sell personal and commercial insurance with a network of independent agents; and Unitrin Direct, which directly sells personal auto insurance to consumers. The personal and commercial business represents three-fourths of Unitrins $2.5 billion of annual insurance premiums, reaping $700 million in annual premiums with the addition of Kemper Auto and Home in 2002. Unitrin Life & Health Insurance offers life, health and accident insurance to customers through a national network of 2,500 company-employed career agents and 250 independent agents. Its consumer finance division is one of the oldest companies of its kind. The division helps individuals with marginal credit ratings to purchase previously owned automobiles. The sector reached record profits in 2004. George Roberts, a former Teledyne executive working beneath founder Henry Singleton, created the name Unitrin in 1989 as Teledyne prepared itself for the spin-off of its financial services business (leading Roberts to the name of two insurance divisionsUnited and Trinity).
A Happy Kemper
Unitrin capitalized on a favorable time period during the beginning of 2002, one of the worst of times in the personal-lines business, with the acquisition of Kemper Auto & Home. Kemper appealed to Unitrin for a number of reasons. The brand is well known nationally, with a sound, old and established following among its independent agents. Profits came in regularly, and in an area of the country where Unitrin had little coverage (primarily the East). Kemper decided to divest its personal-lines business in order to focus on commercial lines, and Unitrin stepped in to negotiate a renewal rights transaction where it got the right to renew and write new business of
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Unitrin, Inc.
around $700 million. Unitrin CEO Richard Vie valued the base of loyal independent agents that came along with Kemper for a seamless transition into Unitrin.
Management happiness
The highly disciplined structure of Teledyne that birthed Unitrin has remained in place since it started. According to Vie, no senior officer of Unitrin has left prior to normal retirement since the companys creation in 1990. The firm doesnt try to influence behavior with money or an overuse of incentives, Vie explained, and Unitrin is one of the new companies whose chief accounting officer does not get bonuses based on financial results.
Record results
For the full year of 2005, Unitrin reported net income of $255.5 million ($3.70 per common share) compared to $240.2 million ($3.51 per common share). Net income went up primarily due to improved operating results, offset in part by lower net realized investment gains. Total revenue increased slightly, from $3,040.8 billion in 2004 to $3,048.1 billion.
GETTING HIRED
U and Unitrin
The careers section of Unitrins web site (jobsearch.unitrin.careers.monster.com) offers a searchable database of job opportunities. The index is searchable based on three menus: business units (Unitrin Corporate, Kemper Auto and Home, Unitrin Specialty, Unitrin Direct, Unitrin Business Insurance, Career Agency Group, Reserve National and Unitrin Data Systems); Location (Los Angeles, Sacramento, Jacksonville, Chicago, St. Louis, Philadelphia and Dallas); and category search (accounting/auditing, computers/software, customer service, education, finance/economics, information technology, insurance and Internet/e-commerce).
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UnumProvident Corporation
1 Fountain Square Chattanooga, TN 37402 Phone: (423) 755-1011 Fax: (423) 755-3962 www.unumprovident.com
THE STATS
Employer Type: Public Company Stock Symbol: UNM Stock Exchange: NYSE Chairman, President and CEO: Thomas R. Watjen 2005 Employees: 11,300 2005 Revenue ($mil.): $10,437.2
LOCATIONS
Chattanooga, TN (HQ) Glendale, CA Portland, ME Worcester, MA More than 30 sales offices across the U.S.
KEY COMPETITORS
Aflac CNA Financial Hartford Life
EMPLOYMENT CONTACT
www.unumprovident.com/careers
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THE SCOOP
Its providence
UnumProvident is an insurance company with a special focus. It provides disability income protection to people who, thanks to payments from UnumProvident, are able to keep up with their bills and put food on the table should they suffer a debilitating injury and need to take time off from work. The company also offers life, long-term care and supplemental insurance to millions of clients. In 2004, the company paid out $5.9 billion in lost income claims to its customersmore, UnumProvident says, than any other income insurer in the world.
UnumProvident plans are used by almost one in every four U.S. employers that provide group disability insurance coveragethat equates to more than 11 million American workers covered by income protection disability insurance. UnumProvident also boasts more than one million customers, and a total of 25 million insured policyholders worldwide. Almost 450,000 new disability claims were filed in 2004 alone, almost $4.2 billion in disability benefits paid. Headquartered in Chattanooga, Tenn., the company also has offices in Portland, Maine, Worcester, Mass., and Glendale, Calif. And it also has subsidiaries overseas in England. Even more subsidiaries broaden its net across the U.S.: Colonial Life & Accident Insurance Company in South Carolina; GENEX Services, based in Pennsylvania; and Options and Choices, out of Wyoming. UnumProvident employs 1,200 experienced associates in field offices across the U.S.
A growing trend
After it was incorporated in 1910, Provident Life and Accident experienced several periods of growth and a few subtle name changes. In 1997, Provident Life & Accident Companies acquired Massachusetts-based Paul Revere Life Insurance Company. But a final, major change made the company what it is today. In 1999, Provident, which had a strong foothold in the individual policies market, merged with UNUM, a life insurance company that was established as a main player in group coverage and international operations. Thus, UnumProvident was born.
Merging technology
When UNUM and Provident united, the top brass discovered theyd have to manage the merger through technologybut they didnt realize the extent of that task right
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away. The new companys managers had planned to use advanced computer and telecommunication systems, which would reduce the duplication of staffers and offices by letting product lines and specialty groups work nationally. But sorting out e-mail, internal chatter, and phone systems didnt run as smoothly or as soon as theyd hoped. Fortunately, the company found a way to deal with its technological challenges. It came up with a three-pronged solution: a steering committee that put senior techies in charge of strategic decisions; other business transition groups to manage customers needs; and working groups whose main aim was to hone in on tech and infrastructure problems.
Alterations abroad
UnumProvident also made changes to overseas operations. In January 2004, the company sold off Unum Japan Accident Insurance Company, its wholly-owned subsidiary, to Hitachi Capital Corporation for almost $23 million. It also sold its Canadian operations, the old Provident Life and Accident Insurance Company, to the Royal Bank of Canada, for an undisclosed amount in March 2004. In the embattled country of Argentina, the company restructured, boosting operations with an infusion of capital into the new holding company it created, Unum Latin America Holdings S.A.
New man in the top spot

In March 2003, the company put CEO Thomas Watjen in charge on an interim basis, and in September, the board voted unanimously to keep him there. By late spring of 2003, the company had completed an equity and debt offering of nearly $1 billion, which, along with a conservative financial plan, helped shore up its balance sheet. For 2000, the company had posted an annual net income of $564 million. Yet in 2003, it posted a loss of $386.4 million in net incomedue to the generally weak economic environment, low level of interest rates and income loss from discontinued operationseven though sales had continued to grow. By 2004, the stormy waters seemed to have calmed as Watjen settled into his first full year as CEO. In 2004 earnings were in line with analysts, expectations and in November 2004, the company reported a net income surge of 54 percent in the third quarter, helped by investment gains and improved results from the group protection business.
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In 2005, UnumProvident reported revenue totaling $10.4 billion, which included $7.8 billion of premium income. Total assets by the end of 2005 reached $51.9 billion, with shareholder equity at $7.4 billion.
Charitable contributions
Due to its mission to provide income protection solutions, the company considers its relationships with customers and the communities it serves to be a key part of its operations. As such, UnumProvident maintains an active community giving program, which in 2003, contributed more than $3.3 million to nonprofits throughout the U.S. and the U.K. Employees are active contributors as well, giving a total of $790,249 in 2003. UnumProvidents matching gift program matched these donations dollar-for-dollar.
In 2004, UnumProvident gave $4.5 million to charitable groups in America and the U.K., in addition to $896,000 of employee contributions to local organizations. UnumProvident supports its employees volunteer efforts, either by serving as a mentor, working on a local Habitat for Humanity home or giving time to community organizations. The company takes its employee contributions so seriously, its created the Voice of the Volunteer program to recognize all outstanding volunteer efforts made by employees throughout the company.
GETTING HIRED
U n Provident
The careers section of UnumProvidents web site (www.unumprovident.com/careers) enables job seekers to set up an account to create and/or submit a resume and set up automated job agents, as well as search job openings. Jobs are searchable by location and job type, which can include actuarial, administrative, claims, communications, finance, human resources, information technology, legal, product development, project management, sales and underwriting.
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WellPoint, Inc.
120 Monument Circle Indianapolis, IN 46204 Phone: (317) 488-6000 Fax: (317) 488-6028 www.wellpoint.com
THE STATS
Employer Type: Public Company Stock Symbol: WLP Stock Exchange: NYSE Chairman, President and CEO: Larry C. Glasscock 2005 Employees: 42,000+ 2005 Revenue ($mil.): $45,136
LOCATION
Indianapolis, IN (HQ) Offices in 27 states.
KEY COMPETITORS
Aetna CIGNA UnitedHealth Group
EMPLOYMENT CONTACT
www.wellpoint.com/careers
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WellPoint, Inc.
THE SCOOP
Piecing it together
WellPoint, Inc. was created when WellPoint Health Networks Inc. and Anthem, Inc. merged in 2004. WellPoint, Inc. is the nations leading health insurer, serving approximately 34 million medical consumers through its many subsidiaries. WellPoint is the BlueCross licensee in California and licensed for Blue Cross and Blue Shield in 13 other states, including Colorado, Connecticut, Georgia, New Hampshire and Virginia. WellPoint operates several other subsidiaries. HealthLink provides network rental, workers comp and other non-underwritten health benefits in Missouri, Arkansas, Illinois, Indiana, Iowa, Kentucky and West Virginia. UniCare is the full-service health plan in areas across the country where WellPoint does not have a Blue license. AdminaStar Federal, located in Indiana; United Government Services, based in Wisconsin; and Empire Medicare Services, headquartered in New York all administrate government health benefits programs, mainly Medicare.
Gathering the blues

Anthem Inc. formed from two Indianapolis-based corporations created in 1944 and 1946 as mutual insurance companies that offered health insurance to Indiana residents as Blue Cross of Indiana and Blue Shield of Indiana, eventually merging to jointly manage the states Medicare and Medicaid programs. After weathering the economic stasis of Indianas economy and increased competition from national vendors in the 1970s and early 1980s, the Indiana company merged in 1985 as Associated Insurance Companies following the merger of the national Blue Cross and Blue Shield organization in 1982. The 1990s saw a decade of consistent expansion for Associated, adding Southeastern Mutual Insurance in 1992, Federal Kemper in 1993, and Seattle property and casualty brokerage Pettit-Morry in 1994. The following year, Associated merged with Ohio Blue Cross and Blue Shield licensee Community Mutual and took on the name Anthem, suffering significant losses as a result of merger-related costs. In 1997, Anthem bought the rest of its Acordia property/casualty unit, a workers comp outfit, and sold Acordias brokerage operations. Anthem cast off the remainder of its non-central operations in 1998, divesting subsidiary Anthem Health and Life Insurance to a Canadian insurer. The remainder of the century saw the acquisitions
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WellPoint, Inc.
of Blues in New Hampshire, Colorado, Nevada and Maine. In 2001, Anthem went public.
Well on point
WellPoint Health Networks also has a long history with the Blues. Its antecedent, Blue Cross of California, came out of the consolidation of Blue Cross of Northern California (formed in 1936) and Blue Cross of Southern California (1937). Blue California formed WellPoint to handle its managed care business in 1992, and spun it off into a separate, publicly traded business the next year. BC of California converted all of its entities to for-profit status in 1996, leading to a corporate reorganization that specified WellPoint Health Networks Inc. as the parent organization.
WellPoint expanded during the 1990s with a strategic growth strategy focused on building strong networks, helping small businesses, careful acquisitions and a service-based business plan, allowing customers the choice between an HMO and a PPO. In 1996, the company acquired the group-benefits segment of the John Hancock Mutual Life Insurance Company and the health division of Massachusetts Mutual Life Insurance for a combined $500 million. In 1999, the company bought Rush Prudential Health Plans, a Chicago-based health-benefits provider, for $200 million, and the following year, gained the rights to Cerulean Companies, Georgias largest provider, in 2000 for $700 million.
Mega-merger
In December 2004, Anthem Inc. finalized its acquisition of WellPoint Health Networks Inc., creating the largest health insurer in America. The new company covers more than a third more people than the next largest competitor, the Minneapolis-headquartered UnitedHealth Group. The new company adopted a simplified version of the moniker, redubbing itself WellPoint, Inc. The cash and stock deal was valued at about $21 billion, and, since being announced in October 2003, had sent Anthems stock up 31 percent, with WellPoints climbing 49 percent. WellPoints profit and revenue both more than doubled during the third quarter of 2005 as the companys success continued to soar in the wake of the merger. Yet investors remained wary after lower-than-expected revenue from the Medicare prescription drug program, and the stock dropped nearly 6 percent. CEO Glasscock also said that start-up costs for the Medicare program would be $40 million, about $10 million more than previously anticipated.
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WellPoint, Inc.
The well gets deeper

WellPoint announced a deal in September 2005 to acquire WellChoice Inc. in a maneuver that strove to impede competition, and raised concern among physicians that it could be detrimental to health plan members. The deal, valued at $6.5 billion in cash and stock, gave WellPoint substantial entry into the New York area with some five million new customers. WellChoice, the largest health insurer in New York State, better known as Empire Blue Cross Blue Shield, was a nonprofit converted into a public venture in 2002 when it went public. WellChoice was the last independent, publicly traded Blue Cross plan in the nation. While WellPoint said that the consolidation of insurance providers would help keep costs down for customers, critics said mega-mergers in the health insurance industry served only to stifle competition and dictate to doctors what treatments can and cannot be prescribed.
WellPoint has shown a willingness to listen to concerns about interfering in the examining room. In a California legal settlement reached in July 2005, the company agreed to allow physicians more leeway in the treatments they provide. In the agreement, WellPoint outlined plans to adopt a patient-friendly definition of medical necessity that reflects the American and Californian medical associations and would allow cheaper remedies only when they are as effective as a doctors recommendation. The deal, which emerged from two class-action lawsuits launched by over 700,000 physicians who accused the company of methodically underpaying them, included a $198 million payout and a prohibition on WellPoints purported use of computer software to deny and underpay patient claims.
GETTING HIRED
Sharpening the point

The careers section of WellPoints site (www.wellpoint.com/careers/search_jobs.asp) offers an employment database, searchable by job category and geographic location. The 35 listed job categories include actuarial, behavioral health, business support, claims, enrollment and billing, fraud, information technology, marketing, operations, purchasing, underwriting and workers comp.
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W.R. Berkley Corporation

475 Steamboat Road Greenwich, CT 06830 Phone: (203) 629-3000 Fax: (203) 769-4098 www.wrbc.com
THE STATS
Employer Type: Public Company Stock Symbol: BER Stock Exchange: NYSE Chairman, President and CEO: Thomas R. Watjen 2005 Employees: 11,300 2005 Revenue ($mil.): $4,996.8
LOCATION
Greenwich, CT (HQ) Locations and affiliates across the U.S. and worldwide.
KEY COMPETITORS
Allstate AIG State Farm
DEPARTMENTS
Alternative Markets International Regional Reinsurance Service Operations Specialty
EMPLOYMENT CONTACT
Contact subsidiaries web sites: Berkley Risk Administrators: www.berkleyrisk.com/index2.html Midwest Employers Casualty Company: www.mwecc.com/About_Careers.aspx E-mail: careers@mwecc.com Many more. Check www.wrbc.com/subsidiaries.htm to see a list of affiliates web sites.
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THE SCOOP
Not the California Berkeley

Founded by William Berkley in 1967, W.R. Berkley Corporation is one of the countrys leading commercial lines property casualty insurance providers. Berkleys five divisions each operate in a different niche market where the company can apply specialized knowledge about certain products or locations. Berkley prides itself on its competitive advantage in its long-term strategy of decentralized operations that allows the company to isolate and quickly respond to market changes. Additionally, the company says, the decentralized organization enables [it] to attract and retain the highest caliber professionals.
Each of the companys 28 subsidiaries (20 of which were homegrown) defines its market by customer, product, level of risk or geography. The companies are grouped into five segments: regional property casualty insurance; reinsurance; specialty insurance; alternative markets; and international.
Adding to the roster

The company formed four new operating companies in the 2005 fiscal year. Berkley Aviation, LLC is a Santa Barbara, California-based group specializing in airline, helicopter and airport risks written on a co-insurance basis in addition to general aviation risks including non-owned liability, aviation general liability and contingent liability accounts. Watch Hill Facultative Management, LLC, headquartered in Stamford, Connecticut, specializes in underwriting (and heres a shocker) facultative reinsurance. Berkley introduced Watch Hill in December 2005. In January 2006, Berkley announced the formation of Berkley Accident and Health, LLC, a subsidiary that will write accident and health insurance and reinsurance for the corporations insurance company subsidiaries. Berkley Net Underwriters, LLC, launched in 2005 a web-based system as well, enabling the companys producers to quote and bind insurance on behalf of Berkley subsidiaries. Its initial business will be focused on the workers compensation market, though future expansion is expected. Berkley operates a number of overseas subsidiaries as well. Four are located in Argentina, with another in the Philippines, formed in 1997.
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A solid year
Berkleys stock rose 6 percent after announcing its fourth quarter and year end earnings in 2005. The company earned $167 million ($1.25 a share) in the fourth quarter of 2005 compared to $116 million (88 cents a share) over the same period a year before. Fourth quarter revenue grew 14 percent to $1.34 billion, beating industry estimates. The company expects overall growth of between 6 to 12 percent during 2006. CEO William Berkley told investors: Our return on equity was 25.8 percent, while cash flow, underwriting profits and premium volume all reached record levels. The strength of our balance sheet positions us to take advantage of opportunities and to deal with any uncertainties.
GETTING HIRED
Go through the affiliates

W.R. Berkleys corporate web site doesnt have a list of job oppotunities, but many of its affiliates have careers sections on their sites. Prospective applicants should go to www.wrbc.com/subsidiaries.htm and click through the list of affiliate companies web sites to find more information. For example, Berkley Risk Administrators Company has a database searchable by location (Minneapolis, St. Paul or Phoenix) and keywords. Applicants are encouraged to e-mail their resumes to apply to open positions at this Berkley subsidiary.
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About the Editor

Laurie Pasiuk graduated from Fordham University with a degree in English literature. She started and edited the fiction section for Elsevier Sciences HMS Beagle before joining Vault as a staff editor.
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Vault Guide To The Top Insurance Employers

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TOP INSURA EMPLO

2006 Vault Inc.

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EDITED BY LAURIE PASIUK AND THE STAFF OF VAULT

2006 Vault Inc.

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Aetna Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12