Joseph Brandon resigned as chairman and chief executive officer of General Re Corp., and parent company Berkshire Hathaway Co. replaced him with Franklin “Tad” Montross IV, Gen Re”™s president.
Gen Re sells reinsurance that other insurance companies buy to lessen their exposure to large losses caused by catastrophes or other events. The company employs 800 people at its Stamford headquarters. Berkshire Hathaway is based in Omaha, Neb.
Becoming CEO in 2001, Brandon came under pressure to resign following the fraud convictions of four former Gen Re executives earlier this year. Brandon had received a “Wells notice” in 2005 from the U.S. Securities and Exchange Commission notifying him that he could face an enforcement action, but he has not been charged with wrongdoing.
Under Brandon in 2007, Gen Re had a $555 million gain from underwriting before taxes, on $6 billion in premiums.
Rating agencies A.M. Best Co. and Standard & Poor”™s left intact their “superior” grades on Gen Re.
“Under ”¦ Brandon, the underwriting culture of Gen Re was vastly improved,” A.M. Best stated in a press release. “Montross, ”¦ who played a significant role in Gen Re”™s transition, has the necessary experience and capabilities to ensure a smooth transition and maintain the group”™s underwriting culture.”
