2016 Power Broker

Power Brokers of Negotiation

In a record year for M&As, the 2016 Power Brokers excelled at marrying risk management cultures and firming up carrier relationships.
By: | February 22, 2016 • 7 min read

Spurred on by low interest rates and an appetite for scale, business leaders in 2015 sought to create market heft through mergers and acquisitions.


Winners of the 2016 Risk & Insurance® Power Broker® award were right there with them; marrying risk management cultures, ironing out coverage gaps and redundancies, and getting the insurance carriers to behave on price.

Alex Michon, a Sacramento, Calif.-based senior vice president with Aon, is a 2016 Power Broker® in the health care category. In a health care system merger that came out of the gate as a fire drill and then dragged on for months, Michon was reminded of a key M&A consideration: the human cost in acquisitions is often underestimated.

That’s something commercial insurance brokers need to keep in mind if they are going to build productive relationships and achieve the goals of both the buyer and the seller. Many times the risk manager for the acquired company is losing his or her job. Yet they still have to perform at the top of their game to bring off the deal.

“I think the human cost is usually under-represented in terms of the stress that these people are going through,” Michon said.

In these cases the broker can be a friend to the risk manager, who might not be first in the thoughts of finance executives or other company leadership. The risk manager might be driving in to work every day, knowing that a merger is underway and be unable to tell colleagues about it; even though hundreds of jobs may soon be on the chopping block.

“We are one of the few people who can openly talk to them,” Michon said.

In most cases, Michon said, the risk manager will perform admirably, giving the brokers and carriers all the information they need to be able to write the risk of the combined companies.

But Michon has seen cases where risk managers became so concerned with their futures that they put most of their energy into job hunting.

That tension can also impact dialogues with brokers who are working on a target company account, according to Arthur J. Gallagher’s Amy Sinclair, a 2016 Power Broker® in the pharmaceutical category and a veteran of many merger deals.


“Employees of the target company are concerned about redundancy at the acquisition partner,” Sinclair said.

“There is a good chance they may no longer have a job once the transaction closes,” she said.

Smaller brokerages that don’t have a lot of experience with M&As may dig in their heels a little bit.

“Generally speaking, brokers for the target and acquisition partner work well together,” Sinclair said.

“Regardless of what side of the transaction you are on, you still want to provide the best service to your client. It is not in anyone’s best interest to withhold information or to be uncooperative,” she said.

Carrier Relationships

The broker’s burden of relationship maintenance in the case of an acquisition also extends to those that underwrite the risks — the carriers. There is a lot of work to be done to convince the carrier that the risk they know won’t change when one company acquires another.

Herman Brito Jr., assistant vice president, Marsh

Herman Brito Jr., assistant vice president, Marsh

Marsh’s Herman Brito Jr.,  a 2016 Power Broker® in the marine category who places cargo and inland marine policies, played a part in two blockbuster deals in 2015; the acquisition by General Electric of the French electric railcar maker Alstom and the marriage of global food giants Kraft and Heinz.

Marsh was new to the Heinz account when the Kraft merger loomed. Pre-merger, Brito convinced Heinz to ditch its captive for global cargo exposures and transfer the risk to AIG. Even though Marsh wound up with both accounts, the rules of broker-client confidentiality meant that Brito couldn’t call his colleagues in Chicago — where Kraft is based — and check up on Kraft’s loss history.

Brito is a big fan of AIG’s multinational placements, calling them “best in class.” His challenge was to make sure that Kraft benefitted from the same aggressive terms he was getting for Heinz post-merger. As the cargo broker, Brito knew that the carriers had bigger concerns about things such as combined property exposures than what he was placing.


“Not only am I asking you to make it clear and concise for Heinz/Kraft, let’s make it easy on ourselves by implementing a mergers and acquisitions clause and a multi-year rate agreement,” Brito told the underwriters.

“It took a tremendous effort to change the structure that was in place in August 2014, and to obtain the coverages implemented in May 2015, but when claims occurred they started to see the benefits in certain coverages and why we pursued those,” Brito said.

“I think the human cost is usually under-represented in terms of the stress that these people are going through.” — Alex Michon, senior vice president, Aon

The General Electric/Alstom merger was another kettle of fish.

“GE’s acquisition of  Alstom was the hardest acquisition I have ever done,” Brito said.

The reason?

General Electric has a highly centralized risk management department, four risk managers handling the entire global program. Alstom had up to 30 risk managers, many of them with local authority.

Another difference was that General Electric has a huge retention and Alstom had more of a “trading dollars” philosophy, spending so much on premium against so much in expected losses.


Brito needed to convince the carrier that when GE bought Alstom, the cargo risk management programs would become one. Initially, the insurer wasn’t buying it. But eventually Brito convinced the underwriters that once the companies were married, Alstom’s standards would come up to GE’s.

Part of Brito’s job was to make sure he was available at any hour of the day to answer questions from Alstom risk managers around the globe and help them buy into the GE program.

“If you demonstrate that you are willing to have conference calls at a time that is most convenient in India, people are more willing to do what you are asking them to do,” Brito said.

The GE/Alstom deal closed in November of 2015. Brito was still spending a lot of time on it when we spoke to him in January.

Odd Couples

Marrying risk management cultures in a merger is a must; having the tools and the drive to convince carriers to take on the combined risk is crucial; and so is conducting enough due diligence to manage risk and provide adequate employee benefits when two very different company cultures get together.

Consider the challenges faced by Eric Wittenmyer, a 2016 Power Broker® in the health care category.

Eric Wittenmyer, senior vice president, Aon

Eric Wittenmyer, senior vice president, Aon

Wittenmyer, a senior vice president with Aon based in Chicago, was tasked with ironing out employee benefits for a large hospital system merger involving thousands of employees. One of the organizations classified hundreds of their employees as executives, eligible for a special category of benefits. The other organization counted slightly more than a dozen executives in a similar category.

“What we did was a tremendous amount of benchmarking, and an awful lot of cost modeling,” Wittenmyer said. That science determined that the hospital with the smaller group of employees classified as executives was closer to the norm.

Then came the art. That was figuring out how different employees perceived the value of certain ancillary benefits, such as life insurance and disability benefits.

Once that was determined, the in-house benefits team, with Wittenmyer’s guidance, offered one-time cash payments to employees who felt they were having a guaranteed benefit taken away, while still offering them access to an employer supported program; just not one in which the employer paid for the whole nut.


“So once we had done all of the plan design work, we had to manage significant transitional coordination issues,” Wittenmyer said.

Because coverage of certain benefits for the merged entities was taking effect on a staggered schedule, with some benefits being in place Jan. 1, for example, and others March 1, Wittenmyer had to earn the trust of underwriters who were being asked to stay on certain programs for a few months — some of them involving high potential life insurance pay-outs — without the corresponding premium income.

In the end, Wittenmyer was able to convince the carriers to work with him, with no price increases, because of the attractive size of the merged accounts.

“I think everything was as transparent as it could be and the vendors understood that,” Wittenmyer said.

See the complete list of 2016 Power Broker® winners.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

Janet Sheiner, VP of risk management and real estate at AMN Healthcare Services Inc., sees innovation as an answer to fast-evolving and emerging risks.
By: | March 5, 2018 • 4 min read

R&I: What was your first job?

As a kid, bagging groceries. My first job out of school, part-time temp secretary.

R&I: How did you come to work in risk management?

Risk management picks you; you don’t necessarily pick it. I came into it from a regulatory compliance angle. There’s a natural evolution because a lot of your compliance activities also have the effect of managing your risk.

R&I: What is the risk management community doing right?


There’s much benefit to grounding strategic planning in an ERM framework. That’s a great innovation in the industry, to have more emphasis on ERM. I also think that risk management thought leaders are casting themselves more as enablers of business, not deterrents, a move in the right direction.

R&I: What could the risk management community be doing a better job of?

Justified or not, risk management functions are often viewed as the “Department of No.” We’ve worked hard to cultivate a reputation as the “Department of Maybe,” so partners across the organization see us as business enablers. That reputation has meant entertaining some pretty crazy ideas, but our willingness to try and find a way to “yes” tempered with good risk management has made all the difference.

Janet Sheiner, VP, Risk Management & Real Estate, AMN Healthcare Services Inc.

R&I: What was the best location and year for the RIMS conference and why?

San Diego, of course!  America’s Finest City has the infrastructure, Convention Center, hotels, airport and public transportation — plus you can’t beat our great weather! The restaurant scene is great, not to mention those beautiful coastal views.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

The emergence of risk management as a distinct profession, with four-year degree programs and specific academic curriculum. Now I have people on my team who say their goal is to be a risk manager. I said before that risk management picks you, but we’re getting to a point where people pick it.

R&I: What emerging commercial risk most concerns you?


The commercial insurance market’s ability to innovate to meet customer demand. Businesses need to innovate to stay relevant, and the commercial market needs to innovate with us.  Carriers have to be willing to take on more risk and potentially take a loss to meet the unique and evolving risks companies are facing.

R&I: Of which insurance carrier do you have the highest opinion?

Beazley. They have been an outstanding partner to AMN. They are responsive, flexible and reasonable.  They have evolved with us. They have an appreciation for risk management practices we’ve organically woven into our business, and by extension, this makes them more comfortable with taking on new risks with us.

R&I: Are you optimistic or pessimistic about the U.S. health care industry and why?

I am very optimistic about the health care industry. We have an aging population with burgeoning health care needs, coupled with a decreasing supply of health care providers — that means we have to get smarter about how we manage health care. There’s a lot of opportunity for thought leaders to fill that gap.

R&I: Who is your mentor and why?

Professionally, AMN Healthcare General Counsel, Denise Jackson, has enabled me to do the best work I’ve ever done, and better than I thought I could do.  Personally, my husband Andrew, a second-grade teacher, who has a way of putting things into a human perspective.

R&I: What have you accomplished that you are proudest of?

In my early 20s, I set a goal for the “corner office.” I achieved that when I became vice president.  I received a ‘Values in Practice’ award for trust at AMN. The nomination came from team members I work with every day, and I was incredibly humbled and honored.

R&I: What is your favorite book or movie?

The noir genre, so anything by Raymond Chandler in books. For movies,  “Double Indemnity,” the 1944 Billy Wilder classic, with insurance at the heart of it!

R&I: What is your favorite drink?


Clean water. Check out Water.org for how to help people enjoy clean, safe water.

R&I: What’s the best restaurant at which you’ve eaten?

Liqun Roast Duck Restaurant in Beijing.

R&I: What is the most unusual/interesting place you have ever visited?

China. See favorite restaurant above. This restaurant had been open for 100 years in that location. It didn’t exactly have an “A” rating, and it was probably not a place most risk managers would go to.

R&I: What is the riskiest activity you ever engaged in?

Eating that duck at Liqun!

R&I: If the world has a modern hero, who is it and why?

Dr. Seuss who, in response to a 1954 report in Life magazine, worked to reduce illiteracy among school children by making children’s books more interesting. His work continues to educate and entertain children worldwide.

R&I: What do your friends and family think you do?

They’re not really sure!

Katie Dwyer is an associate editor at Risk & Insurance®. She can be reached at [email protected]