Bermuda-based PXRE is to undergo a strategic reorganisation of its underwriting and support operations.
The reorganisation will include key promotions, a 10% reduction in staff numbers, a restructuring of the firm’s retirement benefits, and expected annual cost savings o f$4m.
As part of the changes, Guy Hengesbaugh was promoted from executive vice president to chief operating officer. He will oversee all underwriting operations as part of his new role.
John Daly has been promoted from senior vice president to executive vice president and will oversee PXRE’s international reinsurance business, said the company.
Peter Kiernan was promoted from vice president to senior vice president, with responsibility for overseeing PXRE’s North American reinsurance operations, while John Modin was promoted from senior vice president to executive vice president, but will remain chief financial officer.
Senior vice president Andrew Stapleton, who joined the company in November, is to oversee PXRE’s marine and aerospace business, working closely with Hengesbaugh on the company’s retrocessional business, it announced.
Executive vice president Michael Bleisnick is to take early retirement.
The restructuring is expected to hit PXRE with a charge of approximately $600,000 in the first quarter. However, it should provide $2.7m in cost savings during the remainder of the year, with approximately $4m in savings during 2005, it said.
PXRE president and chief executive officer Jeffrey Radke, said: “These appointments reflect the success of our efforts to refocus on our core catastrophe and risk segment and the move of our underwriting operations to Bermuda.
“We have reorganized our operations and reduced personnel in select non-core areas of the business, which will allow PXRE to operate more efficiently and position ourselves for further success.
