Dean R. O’Hare

On Kentucky Derby Day, I take a deep breath if none of the horses have died on the track,” says Dean R. O’Hare, chairman and CEO of Chubb Corporation.

You can’t blame him. Chubb has millions of dollars in insurance policies riding on some of those thoroughbreds-an example of the entrepreneurial culture that has nearly doubled the property-casualty insurer’s net income from $267 million in 1986 to $522.1 million in 1990. Moreover, its record earnings have come as much of the industry is struggling.

O’Hare believes that the current problems of the industry stem from lack of strategy. He’s had first-hand experience, because he saw how Chubb refocused its strategy after it suffered unexpected losses back in 1973-74.

Since then, the insurer has cut back on less profitable lines such as general auto insurance, and concentrated on niche areas such as wealthy individuals. “If you’re not rich, we’re not really interested,” says O’Hare unabashedly, listing Chubb’s lucrative coverages for mansions, fine works of art, and jewelry.

Replicating the same strategy overseas has boosted premiums from Europe by more than 40 percent in the first three quarters of 1991. Chubb is also tackling Asia’s fast-growing market. He expects premiums from abroad will account for 25 percent of total revenues by the year 2000.

At home, O’Hare deplores the price cutting and junk bond investing that have rocked the industry. As for Chubb and its very solid financial position, O’Hare says, “We’re selling a promise to pay, and if our balance sheet isn’t pristine, we can’t keep that promise.”


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.