PORTLAND (AP) – Problems including lawsuits, stock losses and negative publicity have created a humbler UnumProvident Corp. that is emerging from its financial troubles as a stronger company, the company’s chief executive says.

The nation’s largest disability insurance company has been cleansed of the “arrogance” brought about by market dominance, said Tom Watjen, president and CEO.

“In claims, it may have been one of the areas where the corporate arrogance came through,” he said. These days, he said, UnumProvident is stressing customer service and a more humble approach with its customers.

Watjen stepped in two years ago to replaced ousted president and CEO J. Harold Chandler.

A difficult merger, unexpected financial losses and steep stock drops were compounded by accusations that the company withheld payments on valid claims led to investigations by attorneys general and a spate of bad publicity.

Those difficulties have led to a change in business strategy in which the company picks and chooses customers that promise better profitability instead of simply chasing large customers, Watjen said.

The rebuilding process, which included the sale of some business units and restructuring of debt, is complete, he told the Portland Press Herald.

California recently reached a settlement on its complaints with UnumProvident, following completion of a review of business practices ratified by 47 other states. And the company’s once-tarnished stock is rising again.

UnumProvident’s financial problems were came about in part because the company became “a little too enamored of growth” and focused on increasing the number of clients rather than focusing on whether the policies themselves were making money, Watjen said.

These days, the company has raised its rates, taking a hit on the sales side to ensure that the bottom line is stronger.

UnumProvident stock, which traded as low as $6 a share in early 2003, now trades at around $22 a share.

Vanessa Wilson, a stock analyst with Deutsche Bank, said Watjen has completed his key tasks. “If you think about a to-do list, other than executing and running the company, at this point I don’t think there’s some big looming item to do at this point,” she said.

Watjen said he is proud of having turned things around without mass layoffs, saying that’s what happens when companies allow themselves to become bloated. UnumProvident has about 12,000 employees, including 3,600 in Portland.

As for attitude, he said the company has been cleansed of the “arrogance” caused by market dominance. That arrogance, Watjen said, was fostered by corporate officials. “It was very much a topdown, don’t really care what the employees think attitude,”‘ he said.

Watjen insists that mind-set is now gone. He’d like to see UnumProvident start appearing on those “best places to work” lists. “That’s a stretch goal for us, but it’s one we’re trying to achieve,” he said.