Claude Penland: Actuary & Partner, Ezra Penland Actuarial Recruitment

Life Insurance Salaries at the Top Among CEO’s, Chairmen and Others, by Claude Penland
The Median Chief Executive Officer Brought Home $6.0 Million

A research study of life insurance compensation was conducted at LifeSalarySurvey.com. This salary survey considered the top 10 life insurance companies in the United States market, based on market capitalization.

Compensation by the leading executives at Genworth, Hartford Financial, Torchmark, Protective Life, Symetra, FBL Financial, Met Life, Prudential USA, Principal and Lincoln National were tallied.

Annual compensation was compiled from U.S. SEC filings. This compensation included salary, bonus, share awards, option awards, non-equity incentive plan compensation and change in pension value.

The median Chief Executive Officer (CEO) at these firms brought home $6.0 million. Fifty percent of these CEO’s earned between $4.7 million and $8.7 million.

The median Chairman earned $7.3 million, with the middle 50% of the Chairpersons bringing home $4.8-10.4 million.

Median Presidents collected $6.0 million. Fifty percent of these Presidents earned between $4.9 million and $7.2 million.

Median Chief Investment Officers (CIO) collected $2.5 million, with the middle 50% of the CIO’s earning $1.2-4.1 million.

Chief Financial Officers (CFO), at the median, brought home $2.1 million. Fifty percent of these CFO’s collected between $1.5 million to $4.2 million.

The median General Counsel collected $2.0 million. Fifty percent of these General Counsels brought home between $1.5 million and $2.3 million.

Annual Property and Casualty Reinsurance Salary Survey, by Claude Penland
The Median Chief Executive Officer was Shown to Earn $6.6 Million

A study of C-level compensation has been undertaken for the property and casualty reinsurance industry. Annual pay was researched for those working as Chief Executive Officer, Chairman, President, Chief Operating Officer, Chief Financial Officer and Chief Underwriting Officer.

These figures were calculated from the most recent applicable United States Securities and Exchange Commission filings, which are produced by the companies themselves. They are all publicly-available numbers.

The median CEO was shown to earn $6.6 million. The middle fifty percent of CEO’s brought home $4.6-7.6 million.

Chairmen collected $3.9 million, at the median, with 50% of these Chairpeople earning $3.3-5.4 million.

Median COO’s brought home $3.3 million. The middle fifty percent of COO’s collected $2.6-4.0 million.

Presidents earned $7.2 million, at the median, with 50% of Presidents bringing home $4.7-7.7 million.

Median CUO’s collected $2.9 million. The middle fifty percent of CUO’s earned $2.4-3.7 million.

CFO’s brought home $2.6 million, at the median, with 50% of CFO’s collecting $1.9-3.6 million.

Thirteen companies were included. They were Arch Capital, Platinum Underwriters, Alterra Capital, Validus, XL, White Mountains, RenaissanceRe, Endurance Specialty, Everest Re, Montpelier Re, Transatlantic Re, PartnerRe and Axis Capital. These companies represented the largest U.S.-exchange-listed reinsurers that are responsible for filing annual compensation data with the SEC.

Compensation included salaries, bonuses, share awards, option awards, non-equity incentive plan compensation, as well as change in pension value.

Results and underlying data may be inspected at the ReinsuranceSalarySurvey.com website.

2010 Insurance IT Salary Survey

Reinsurance C-Suite Salary Survey PowerPoint Presentation.

Reinsurance C-Suite Salary Survey YouTube Video.

Recruiter Salary Survey PowerPoint Presentation.

1. Utilities
2. Mining, Oil & Gas Exploration
3. Finance & Insurance
4.-5. Read more…

The upper limit for an actuary with regulatory experience is a rather impressive $1,600 a day.

Property & Casualty, Life, Health Compensation Survey, Top 10 Companies by Market Cap, Medians:

CEO: P&C $10.4 million, Life $6.0m, Health $6.6m

Chairman: P&C $15.9m, Life $7.3m, Health $15.3m

President: P&C $9.1m, Life $6.0m, Health $6.5m

COO: P&C $7.3m, Life —, Health $2.7m

CFO: P&C $2.8m, Life $2.1m, Health $4.0m

CIO: P&C $1.6m, Life $2.5m, Health —

General Counsel: P&C $2.5m, Life $2.0m, Health —

I’ve added a PowerPoint to present these results, as well as a YouTube video.

Also see other presentations at ClaudePenland.com/multimedia.

I looked at the SEC filings for the top 10 US publicly-traded property & casualty (mostly P&C) primary insurers by market capitalization, to produce a C-level compensation survey.

Here is the underlying data, publicly available on Google Spreadsheets.  (My P&C reinsurance survey may be found at ReinsuranceSalarySurvey.com),

These companies were included: Travelers, AIG, ACE, Chubb, Allstate, Progressive, CNA, Cincinnati Financial, W.R. Berkley and Markel.

“Compensation” in this context is the total amount from the “Summary Compensation Table”, which includes salary, bonus, share awards, option awards, non-equity incentive plan compensation, change in pension value, and whatever else they decide to include in that table.

Chief Executive Officer (CEO): 25th percentile = $4.3 million ; Median = $10.4 million ; 75th percentile = $16.9 million

Chairman: 25th = $11.3m; Median = $15.9m ; 75th = $18.8m

Chief Operating Officer (COO): 25th = $5.0m ; Median = $7.3m ; 75th = $7.5m

President: 25th = $5.0m ; Median = $9.1m ; 75th = $12.2m

Chief Financial Officer (CFO): 25th = $1.3m ; Median = $2.8m ; 75th = $4.8m

Chief Investment Officer (CIO): 25th = $1.2m ; Median = $1.6m ; 75th = $3.2m

General Counsel: 25th = $2.5m ; Median = $2.5m ; 75th = $4.5m

*If someone held more than one slot, I included them in all applicable slots.

**This post is also reachable from InsuranceSalarySurveys.com (where there are also Health and Life salary surveys.)

***As seen in the American Academy of Actuaries’ Contingencies magazine.

I spent a little time and looked at the SEC filings for the top 10 US publicly-traded life (mostly life) insurers, by market capitalization, to produce a C-level compensation survey. Here is the underlying data, publicly available on Google Spreadsheets.

These companies were included: Met Life, Prudential USA, Principal, Lincoln Financial, Genworth, Hartford Financial, Torchmark, Protective Life, Symetra and FBL Financial.

“Compensation” in this context is the total amount from the “Summary Compensation Table”, which includes salary, bonus, share awards, option awards, non-equity incentive plan compensation, change in pension value, and whatever else they decide to include in that table.

Chief Executive Officer (CEO): 25th percentile = $4.7 million ; Median = $6.0 million ; 75th percentile = $8.7 million

Chairman: 25th = $4.8m; Median = $7.3m ; 75th = $10.4m

General Counsel: 25th = $1.5m ; Median = $2.0m ; 75th = $2.3m

President: 25th = $4.9m ; Median = $6.0m ; 75th = $7.2m

Chief Financial Officer (CFO): 25th = $1.5m ; Median = $2.1m ; 75th = $4.2m

Chief Investment Officer (CIO): 25th = $1.2m ; Median = $2.5m ; 75th = $4.1m

If someone held more than one slot, I included them in all applicable slots. Enjoy!

(This post is also reachable from InsuranceSalarySurveys.com, which also includes Health Insurance, Property & Casualty Primary Insurance, and Property & Casualty Reinsurance salary surveys.)

*As seen in the American Academy of Actuaries’ Contingencies magazine.