John F.
O’Brien resigned as president and chief executive officer of
Allmerica Financial Corp., an insurer whose profits have been hurt
by the stock-market slump.
The resignation is effective immediately, Allmerica said in a
statement. The Worcester, Massachusetts-based company formed a
committee to find a replacement for O’Brien, who has headed the
company since 1989. O’Brien, 59, will continue as a director.
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Allmerica’s profits have fallen as falling stock markets
pared fees from assets under management and cut demand for equity-
linked products such as variable annuities. The company said last
month it was considering several remedies, including selling parts
of its life-insurance and annuity units, raising additional
capital and buying reinsurance to cover liabilities from the
annuity business.
“While the extended downturn in the stock market recently
has had an adverse impact on our life companies, I am confident
that Allmerica will manage through this difficult period and
regain its growth and earnings momentum,” O’Brien said in a
statement.
O’Brien added that he looked forward to “pursuing other
personal and professional interests” after 35 years in the
insurance and financial-services industry.
Michael P. Angelini, who has been an Allmerica director since
1984, was elected to the newly created position of board chairman.
Angelini and the new office of the chairman, which includes
General Counsel J. Kendall Huber and Chief Financial Officer
Edward J. Parry, will “assure continuity of the company’s
leadership,” spokesman Michael F. Buckley said.
The shares of Allmerica have dropped 82 percent this year.
Bloomberg News
