Mark Zesbaugh is running an insurance company again.
Zesbaugh, who spent 17 years at Allianz Life North America and a predecessor company, has joined small Security Life Insurance Co. of America to lead a turnaround following the departure of its two former top dogs in March.
Security Life specializes in the ancillary benefits market, providing dental, vision, disability and life insurance products and services to consumers and small businesses across the country (in conjunction with Security Health Insurance Co. of America in New York).
"My opportunity is to shore up the foundation of the company," Zesbaugh said. "I hope to put some more energy in the organization. Opportunity abounds if we can do things the right way. We're financially strong, with a B+ rating from A.M. Best and we have enough capital and some capacity to grow this business ...."
Zesbaugh, 46, was an outside auditor who joined the old Life USA in 1990. It was acquired in 1999 by huge Allianz Group of Germany, which turned its U.S. franchise over to Life USA's management, then led by CEO Bob MacDonald. Zesbaugh, who was CFO at the time, succeeded MacDonald when he retired in 2002 and ran the fast-growing company for nearly five years before he split over differences with the German masters and before a $5 million settlement with the state of Minnesota over how some independent agents and brokers were marketing Allianz annuities.
"It was a great run, but there were differences over the direction of the company," Zesbaugh said. "I wish them well."
Zesbaugh traded 60-hour weeks for more time with his family, community work and looking for his next gig. He considered starting a Bermuda-based reinsurance company with several other industry veterans and hit the road with a team from Lehman Brothers in 2008 to raise capital. Shortly thereafter, overleveraged Lehman failed amid the collapse of the financial markets.
"One day the Lehman team was there and the next day they were gone," recalled Zesbaugh. "There wasn't much probability of us raising [money] in that market."
Zesbaugh ran his own management consultancy until he was hired by Security Life Chairman Brian Smith, a principal owner of the firm.
"[Mark] brings a proven track record ... and a focus on growing our sales and marketing capabilities in order to increase business," Smith said.
QUALITY WINNERS
The Minnesota Council for Quality has honored two Minnesota organizations, Memorial Blood Centers of St. Paul and Winona Health, for systematically improving performance in 2010.
The award is based on the Malcolm Baldrige "Criteria for Performance Excellence" and is the culmination of a "rigorous evaluation," that includes leadership, strategic planning, customer-focused processes, measurement systems, workforce processes and operations.
"These organizations have committed leaders, visions for the future, and a sharp focus on their customers and stakeholders," said Brian Lassiter, president of the Minnesota Council for Quality. "Their efforts are improving productivity, competitiveness, and outcomes of Minnesota organizations."
The event also recognized 130 quality evaluators and volunteers, including local CEOs, managers, professionals, physicians and surgeons, and school superintendents and teachers from throughout the state, each of whom donated more than 100 hours of service to help other organizations improve performance.
Said Don Berglund, CEO of Memorial Blood Centers: "We began this journey four or five years ago, and I'm quite sure it will never end. Because, while we may continuously improve our performance and we may even reach high levels of excellence, we'll never be perfect.... And so we keep our constancy of purpose and continue to innovate and improve our operations, to the benefit of all of those we serve."
Since 1991, 116 Minnesota organizations have received recognition.
BRAND APPRECIATION
U.S. Bancorp and Wells Fargo & Co. are richer for their names this year, according to the annual Millward Brown Optimor ranking of the value of global "brands."
Minneapolis-based U.S. Bancorp, the only Minnesota company in the Top 100, rose 26 percent in value to $10.5 billion, good for the No. 84 slot.
San Francisco-based Wells Fargo, which has a large Minnesota franchise, was the top-valued U.S. financial services firm at $36.9 billion. At No. 16, Wells Fargo was up 97 percent over 2010 and ahead of Citigroup, No. 47, and Goldman Sachs, No. 100. They declined in value amid reputation drubbings over their roles in the financial crisis.
BP, the bad boy of oil pollution in 2010, fell 27 percent to $12.5 billion, or No. 64. ExxonMobil, rose 10 percent to $16.9 billion in value, to No. 41.
Apple is the world's most valuable brand at $153 billion, according to the authors at www.millwardbrown.com/BrandZ .
Meanwhile, Wells Fargo has been named the U.S. Small Business Administration's Lender of the Year in the big-bank category.
IT'S BOATING SEASON
And Discover Boating, an industry trade group for everything from canoes to yachts, plans to spend up to $1.5 million with ad agency Olson Creative for one of those New Age-social media and mobile communications campaigns. Olson hopes to increase boating among the 68 percent of Americans who rarely venture on the water. www.discoverboating.com is a creature of the National Marine Manufactures Association. It's Memorial Day weekend, advent of the nautical season. I may launch the old canoe for a paddle around Lake Nokomis.
