- Push-out Score determined
- After about six years in the position
- Praise and thanks for Addesso
- Search for a successor
(exechange) — Hamilton, Bermuda, January 7, 2019 — Dom Addesso, chief executive of Everest Re, leaves. As announced by Everest Re Group Ltd. in a news release and in a regulatory filing published on Monday, January 7, 2019, Dominic James (Dom) Addesso leaves his post as Chief Executive Officer at the reinsurance company after about six years in the role, effective December 31, 2019.
Everest Re will undertake a search for a successor.
It is a long goodbye. The announcement of Dom Addesso’s move comes up to 12 months prior to his planned departure from the post of CEO.
In general, a top executive who announces the departure very early may be considered a lame duck.
Lengthy lead times give boards extra time to find replacements, and they also create uncertainty. Would-be successors may jockey for attention and workers may wonder who is actually in charge.
Generally speaking, lame-duck leaders can take a forceful role in selecting a successor and are not expected to launch major shifts.
No reason given
In the announcement, Everest Re did not explicitly explain the reason for Dom Addesso’s move, leaving room for speculation.
Precise information regarding Dom Addesso’s future plans was not immediately available.
Everest Re said: “The Board of Directors of Everest Re Group, Ltd. (“Everest”) has been informed by its President and Chief Executive Officer, Dominic J. Addesso, that he will retire at the end of his contract term on December 31, 2019.”
Everest Re further said: “On January 7, 2019, the registrant issued a news release announcing that President and Chief Executive Officer, Dominic J. Addesso has informed the Company’s Board of Directors of his retirement at the end of his current contract term on December 31, 2019.”
Share price increase since January 2014
The management change announcement follows an increase in Everest Re Group, Ltd.’s share price of 46 percent since January 2014.
Chaired by Joseph V. Taranto
Everest Re Group, Ltd. is chaired by Joseph V. Taranto.
In the position of CEO since 2014
Addesso became Chief Executive Officer of the Company, Everest Reinsurance Co. (“Everest Re”) and Everest Reinsurance Holdings, Inc. (“Everest Holdings”) on January 1, 2014.
He became President of the Company, Everest Holdings and Everest Re on June 16, 2011 and served as Chief Financial Officer of those companies from 2009 through the second quarter of 2012.
In 2009, he became a director and Executive Vice President of Everest Re and Everest Holdings, and a director, Chairman and Chief Executive Officer of Everest Global Services, Inc. (“Everest Global”).
In 2009, he became a director of Everest Reinsurance (Bermuda), Ltd. (“Bermuda Re”), where he has also served as Chairman since 2011 and Chairman and director of Everest Re Advisors, Ltd. (“Everest Re Advisors”).
From 2009 through 2014, he held various director and management roles at the Company’s subsidiaries, including Everest Reinsurance Company (Ireland), Limited (“Ireland Re”), Everest Underwriting Group (Ireland), Limited (“Ireland Underwriting”) Everest Advisors (UK), Ltd. (“Advisors UK”), Mt. McKinley Insurance Company, Everest Insurance Company of Canada (“Everest Canada”), Everest National Insurance Company (“Everest National”), Everest Indemnity Insurance Company (“Everest Indemnity”), and Everest Security Insurance Company (“Everest Security”) as well as a director and Chairman of Everest International Reinsurance, Ltd. (“International Re”), and a director, Chairman and President of Mt. Whitney Securities, LLC (formerly known as Mt. Whitney Securities, Inc.), a subsidiary of Everest Re (“Mt. Whitney”).
Addesso serves as a voting representative of Mt. Whitney in relation to Mt. Whitney’s investment in Security First Insurance Holdings, LLC.
From 2008 until he joined the Company in May 2009, Addesso was President of Regional Clients of Munich Reinsurance America, Inc.
From 2001 to 2008, he served as President of Direct Treaty, Munich Reinsurance America, Inc. with profit and loss responsibility for direct treaty business covering all lines including surety, political risk and marine.
From 1999 through 2001, he served in various underwriting and financial operations roles.
From 1982 to 1995, he served as Executive Vice President and Chief Financial Officer of Selective Insurance Group, Inc.
Prior to that, Addesso worked in public accounting for KPMG.
As a general rule, when a top manager announces to step aside with no successor available, it is a signal that the change was unexpected and too early.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the likelihood that a manager was pushed out or felt pressure to leave the position.
exechange reached out to Everest Re and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 2.2019 ($).