Safeco Corp. Appoints New CEO from Energy Sector

Strategic Insights -

Safeco Corp., a Seattle-based property/casualty insurer, has tapped Paula Rosput Reynolds as its new chief executive, replacing Mike McGavick, who is pursuing a bid for the U.S. Senate. With 27 years of experience in the energy business, Reynolds brings a strong track record of growth and leadership to the company. Under her five-year tenure as CEO of AGL Resources, a multi-state integrated energy company, she doubled its share price and market capitalization, and increased its dividend by 37%. Reynolds' appointment is accompanied by the election of Joseph W. "Jay" Brown as non-executive chairman of Safeco's board, bringing extensive insurance industry experience to the role.

Key Takeaways:

  • Paula Rosput Reynolds, 49, will replace Mike McGavick as CEO of Safeco Corp. effective January 1, 2006.
  • Reynolds spent 27 years in the energy business, including executive positions in Houston and San Francisco.
  • During her five-year tenure as CEO of AGL Resources, she grew the company from a regional gas utility to a multi-state, integrated energy company, doubling its share price and market capitalization, and increasing its dividend by 37%.
  • Reynolds serves on the boards of Coca-Cola Enterprises, Delta Air Lines, and the United Way of Metropolitan Atlanta.
  • Joseph W. "Jay" Brown, 56, was elected non-executive chairman of Safeco's board, bringing extensive insurance industry experience to the role.
  • Brown is chairman of MBIA Inc. and has been a Safeco director since 2001.

Statistics:

  • Safeco's Best's Financial Strength Rating is A (Excellent).
  • AGL Resources' share price and market capitalization doubled during Reynolds' five-year tenure as CEO.
  • AGL Resources' dividend increased by 37% under Reynolds' leadership.
  • Reynolds has 27 years of experience in the energy business.

Sources:

  • A. M. Best Company, Inc., "Safeco Corp. Appoints New CEO from Energy Sector", December 12, 2005.
  • COMTEX News Network, Inc., "Safeco Announces New CEO", December 8, 2005.
  • Safeco Corp., Statement regarding Paula Rosput Reynolds' appointment as CEO.