Borst Quits GM for Navistar

The CIO behind one of the largest pension risk transfers moves on.

(June 27, 2013) — Walter Borst, the long-time CEO, president, and CIO of General Motors Asset Management, has left the firm to join truck and engine maker Navistar International, the company announced today.

Borst will take the role of CFO at the new firm, following the departure of Andrew Cederoth.

During his time at GM, Borst, formerly the company treasurer, was tasked with managing the company’s pension plans in the aftermath of its 2009 bankruptcy.

The fund’s liabilities often exceeded 400% of GM’s market capitalization, so Borst stepped up a programme of de-risking, pushing further into fixed income investments.

This shift into fixed income paid off, Borst told aiCIO last year, when GM decided to shed $26 billion of its outsized liability by offering lump-sum buyouts to pensioners and purchasing the largest ever group annuity contract from Prudential Insurance.

“Historically, GM has tried to be at the forefront of new opportunities in pension management,” he told aiCIO in an interview for our Power 100 series, in which he appeared in 67th spot.

The GM deal was swiftly followed by a similar move by telecoms firm Verizon.

“I’m excited to be joining Navistar and look forward to helping shape the company’s financial and strategic direction for the benefit of its shareholders,” Borst said today. “I’m confident that Navistar is on the right track under Troy Clarke’s leadership and am delighted that I’ll have the opportunity to work with him and the rest of the Navistar team.”

He joins Navistar on August 1. 

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Reporting by Kip McDaniel and Elizabeth Pfeuti