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This reorganization aims to consolidate the non-long-term care (non-LTC) back office operations under a single leadership in Carmel, Indiana, led by Steve Stecher. Key functions such as agent licensing and commission administration will remain with distribution organizations, while long-term care operations will report to John Wells. Additionally, finance and IT functions are clarified as enterprise roles, aligning resources and streamlining processes. The initiative expects to achieve annual savings of $25 million starting in 2008, with 2007 savings anticipated to cover the reorganization costs.
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Reorganization Design Objectives • Consolidating non-LTC Back Office to Carmel, Indiana under a single leader (Steve Stecher) • Agent licensing and commission administration remain part of distribution organizations • Long-term care operations combined under a single leader (John Wells) • Finance and IT further clarified as enterprise functions • Expected savings of $25MM annually, commencing in 2008 • 2007 savings expected to offset reorganization costs