Oct. 6 (Bloomberg) -- Allstate Corp., the largest publicly traded home and auto insurer in the U.S., named Matthew Winter to head the life insurance and retirement unit that contributed to three straight quarters of net losses.

Winter, a vice chairman of American International Group Inc., will join Allstate on Oct. 26 and report to Allstate Chief Executive Officer Tom Wilson, the Northbrook, Illinois-based company said today in a statement. He was named AIG vice chairman of transition planning and administration in April.

The life insurance and retirement unit, called Allstate Financial, returned to profitability in the three months ended June 30 after losing money each quarter since September 2007. James Hohmann stepped down as head of the unit in January and Wilson named George Ruebenson, the president of the insurer’s home and auto business, as an interim replacement. Wilson said this year he would cut 1,000 jobs at the unit.

Winter “has the intellectual capacity, creativity and enthusiasm to drive our vision of reinventing protection and retirement,” Wilson said in the statement.

AIG and Hartford Financial Services Group Inc. are among life insurers that have reported losses from investments tied to subprime mortgages and have taken government bailouts to restore capital. Life insurers depend on income from investments to back policies.

Need for New Leader

“The dramatic change in investment markets, particularly the widening of credit spread has put tremendous pressure on our results for 2008,” Wilson said in a Dec. 10 presentation to investors, a day after Allstate announced Hohmann’s departure. “I thought we needed new leadership in Allstate Financial,” he said. “We need to figure out how to operate in this different environment.”

Hohmann is now CEO of FBL Financial Group Inc., the West Des Moines, Iowa-based seller of fixed-indexed annuities.

At least 49 AIG managers have left the New York-based insurer for competitors since September 2008, when the company was rescued by the U.S. government in a bailout that has swelled to $182.3 billion.

Winter, 52, joined AIG in 2006 and worked as president and CEO of AIG’s American General life insurance business until August. Previously, he worked as executive vice president for MassMutual Financial Group.

‘Excellent Management’

Winter’s roles at AIG reflect “his excellent management skills and experience as a highly effective administrator,” AIG CEO Robert Benmosche said today in memo to employees provided by spokesman Mark Herr. “I would like to thank Matt for his service to the company and wish him well in his future endeavors.”

Allstate climbed 6 cents to $31.19 at 4 p.m. in New York Stock Exchange composite trading. The insurer has dropped 4.8 percent this year. AIG climbed $2.08, or 4.9 percent, to $44.83, and has advanced 43 percent since Dec. 31.

Allstate reported $2.33 billion in net losses in three straight quarters before returning to profitability in the period ended June 30. The insurer said today it will release third quarter results Nov. 4.

To contact the reporter on this story: Jamie McGee in New York at jmcgee8@bloomberg.net

Last Updated: October 6, 2009 16:20 EDT