Published December 04, 2012
American International Group Inc shuffled the management of its mortgage insurance unit for the second time this year, naming a new chief executive for United Guaranty and moving the prior CEO to a senior underwriting position.
AIG said on Tuesday that Donna DeMaio would become CEO of United Guaranty, which has become a core unit for the company in the wake of its post-bailout restructuring.
DeMaio joined United Guaranty in May as chief operating officer after seven years as chief executive of MetLife Bank, a unit of MetLife Inc .
Kim Garland, who had run United Guaranty since last February, will become chief underwriting officer for the global consumer business in AIG's property insurance unit. Garland spent most of his career working in personal insurance before joining the mortgage insurer in 2009.
United Guaranty was once seen as a secondary business for AIG, but as competitors faltered due to crisis-era losses, UGC emerged as one of the strongest companies in the industry.
Senior AIG management have said owning UGC gives them an advantage when investing in mortgage-backed securities because of the market view they get from owning a mortgage insurer.
Garland became the head of UGC in February after his predecessor, Eric Martinez, was named to a new role in the property insurance business overseeing claims and operations.
AIG shares were up 0.8 percent in late trading to $33.38.
(Reporting By Ben Berkowitz, editing by Nick Zieminski)