CHATTANOOGA, Tenn., Sept. 29 /PRNewswire-FirstCall/ -- UnumProvident
Corporation (NYSE: UNM) today announced that its Board of Directors has
appointed Thomas R. Watjen president and chief executive officer. Watjen has
been serving as the company's president and CEO on an interim basis since
March 2003.
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"After a thorough external search, the Board of Directors has unanimously
approved Tom Watjen as president and chief executive officer of
UnumProvident," said C. William Pollard, co-chairman of the Office of Chairman
of the Board. "He is an experienced leader with knowledge and understanding
of the company and also has proved his ability to execute. During the past
six months, Tom has led in improving the financial strength of the company and
has developed a momentum and direction for the future. Under his leadership,
the company raised more than $1 billion in new capital and initiated changes
to improve the quality of our investments. He also has provided an open
environment within the company that encourages confidence and trust among our
people. We are confident Tom is the right leader for UnumProvident."
UnumProvident's board of directors initiated the search for a new chief
executive in March 2003, naming outside director John W. Rowe to lead a search
committee assisted by executive recruiting firm Heidrick & Struggles. At that
time, the board said it would consider Watjen as well as external candidates.
"We conducted an exhaustive search and after considering a number of
outstanding executives, the Board concluded that nobody is better qualified
than Tom Watjen to lead this company," added Lawrence R. Pugh, co-chairman of
the Office of Chairman of the Board. "In addition to being an outstanding
leader, Tom is a man of strong values and high integrity, a combination that
will continue to serve UnumProvident and its stakeholders well."
"I am both excited and honored to have earned the support and confidence
of our board of directors," said Watjen. "UnumProvident is an outstanding
company with a sound business model, strong customer base and more than
13,000 dedicated employees. While undoubtedly there will be more challenges
ahead, I am confident we can enhance our market leadership position for the
benefit of our customers and employees while creating long-term value for our
shareholders."
Watjen added, "My primary goal is to position UnumProvident to
consistently meet or exceed the expectations of our key constituents,
including shareholders, customers and of course our employees. We will
continue to build upon and execute a business plan focused on our strengths.
We have instilled, and will continue to instill, stronger financial discipline
in all that we do to further improve the company's profitability and overall
financial position. At the same time, we will operate with the highest
ethical standards.
"We have made great strides over the past six months, and I look forward
to building off this momentum in the months ahead," he said. "As we deliver
on these commitments, I am certain we will continue to earn the full
confidence of all of our key constituents."
Watjen, 49, joined Provident Companies Inc. in 1994 as executive vice
president and chief financial officer. In March 1997 he was named vice
chairman and a director. In June 1999, following the merger of Unum
Corporation and Provident, Watjen became executive vice president, finance and
risk management, for UnumProvident. In May 2002, he was named vice chairman
and chief operating officer and elected to the board of directors. He was
appointed president and chief executive officer on an interim basis in
March 2003.
Prior to joining Provident, Watjen was a managing director at Morgan
Stanley and Company. He also worked as a partner with Conning & Company and
in corporate finance at Aetna Life and Casualty. Watjen earned a bachelors
degree in economics from the Virginia Military Institute and a master of
business administration degree from the Darden School at the University of
Virginia.
Both Pollard and Pugh will continue in their roles as co-chairmen of the
Office of Chairman of the Board. The company established the Office of the
Chairman of the Board in March 2003 to increase the exchange of information
between the CEO and the Board. "We have found this arrangement to be very
useful," said Watjen. "Information is exchanged on a more continuous and
timely basis, and we have the benefit of the experience of two former CEOs of
public companies. Additionally, this structure is consistent with the trends
in corporate governance to separate the position of Chairman of the Board from
that of the CEO. I look forward to working closely with both Larry and Bill
as co-chairs."
UnumProvident is the largest provider of group and individual disability
income protection insurance in North America. Through its subsidiaries,
UnumProvident insures more than 25 million people and paid $4.8 billion in
total benefits to customers in 2002. With primary offices in Chattanooga,
Tenn., and Portland, Maine, the company employs more than 13,000 people
worldwide. For more information, visit www.unumprovident.com.
A "safe harbor" is provided for forward-looking statements under the
Private Securities Litigation reform Act of 1995. Statements in this press
release which are not historical facts are forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from those contained in the forward-looking statements. These
risks and uncertainties include such general matters as general economic or
business conditions; events or consequences relating to terrorism and acts of
war; competitive factors including pricing pressures; legislative or
regulatory changes; and the interest rate environment. More specifically,
they include fluctuations in insurance reserve liabilities, projected new
sales and renewals, persistency rates, incidence and recovery rates, pricing
and underwriting projections, retained risks in reinsurance operations,
availability and cost of reinsurance, level and results of claim-related
litigation, the level of pension benefit costs and funding, and investment
results, including credit deterioration of investments. For further
information on risks and uncertainties that could affect actual results, see
the sections entitled "Cautionary Statement Regarding Forward-Looking
Statements" and "Risk Factors" in the Company's Form 10-K for the fiscal year
ended December 31, 2002, and subsequently filed Form 10-Qs. The forward-
looking statements are being made as of the date of this press release and the
Company expressly disclaims any obligation to update any forward-looking
statement contained herein.
SOURCE UnumProvident Corporation
-0- 09/29/2003
/CONTACT: Jim Sabourin, Vice President, Corporate Communications,
+1-423-294-6043, or Pamela S. Smith, Director, Corporate Communications,
+1-423-294-7021, both of UnumProvident Corporation/
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/Web site: http://www.unumprovident.com /
(UNM)
CO: UnumProvident Corporation
ST: Tennessee
IN: FIN INS
SU: PER
MG-JB
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