Zubretsky out as Hanover CEO
Photo | Contributed
When he leaves on Nov. 3, Joseph Zubretsky will have served just over 16 months as president and CEO of The Hanover Insurance Group.
Photo | Contributed
John Roche will take over as Hanover CEO and president on Nov. 4.
The Hanover Insurance Group late Tuesday announced Joseph Zubretsky is resigning from his position as its president and CEO, accepting an executive position at a California healthcare firm 16 months after he took over leadership of Worcester's largest publicly traded company.
John Roche, who is the president of Hanover's personal and commercial lines Agency Market division, will take over as the company's president and CEO after Zubretsky leaves on Nov. 3.
Zubretsky, 60, has accepted a position as president and CEO of California managed care company Molina Healthcare, which had $14 billion in revenues last year. He leaves after taking over as Hanover CEO in June 2016 from Frederick Eppinger, who served in the role for 13 years. Hanover had $5 billion in annual revenues last year.
Zubretsky's departure comes after the company announced in February its annual profits from 2016 were half of what they were in 2015 -- $155 million vs. $332 million. In its most recent earnings report, in August the company said it netted $78 million in profits for the second quarter, although it warned last week its third quarter losses from natural disasters like hurricanes Harvey and Irma could total $225 million.
In February, Zubretsky announced his planned overhaul of the Hanover organizational structure -- called Hanover 2021 -- to combine the company's small commercial, middle market and personal lines business into one division called Hanover Agency Markets -- which Zubretsky's successor now runs -- as well as expanding its specialty unit covering companies with unusual risks like power plants. The company cut 160 jobs in August.
Zubretskey's total compensation in 2016 was $7.6 million, according to the Hanover's filings with the U.S. Securities and Exchange Commission.
"Unsolicited, I was presented with a personally compelling opportunity in the healthcare industry. I will very much miss The Hanover, its people and its agent partners, and look forward to watching the company’s continued success," Zubretsky said in a press release.
The immediate announcement of Roche as Zubretsky's replacement comes in stark contrast to eight-month executive search launched after Eppinger announced his retirement in September 2015.
Roche, 54, joined the Hanover in 2006, starting as vice president of underwriting and product management for commercial lines. He served as president of business insurance and field operations from 2013 to 2016 before becoming president of Agency Markets. His total compensation in 2016 was $1.3 million, according to SEC filings.
"He has played a critical role in the successful expansion of our company, working closely with the board and others, helping to position The Hanover over the past decade as the best partner for independent agents and one of the very best companies in our business," said Kevin Condron, chairman at Hanover, in a press release.
Roche has 30 years experience in the property and casualty business, working for companies like St. Paul Travelers Cos., Fireman's Fund and Atlantic Mutual. He is a graduate of the University of Connecticut.
“Over the course of my many years at The Hanover, I have developed an incredible respect for the organization and its committed team. I look forward to working with this team to deliver on our strategy, providing innovative insurance solutions through the best independent agents in the business, and delivering significant value to our customers, shareholders and other stakeholders," Roche said in a press release.
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