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Insurance Australia Group (ASX:IAG) share price lower after naming new CEO


The Insurance Australia Group Ltd (ASX: IAG) share price is edging lower today after making a major announcement.

At the time of writing the insurance company’s shares are down 0.2% to $4.52.

What did Insurance Australia Group announce?

This morning Insurance Australia Group announced that it has found a replacement for its retiring Managing Director and Chief Executive Officer, Peter Harmer.

According to the release, the insurance giant has appointed Nick Hawkins as its new Managing Director and Chief Executive Officer following a comprehensive internal and external search. Mr Hawkins will replace Mr Harmer in the role on 2 November.

This is likely to be a very smooth transition, given that Mr Hawkins has been the company’s deputy CEO since April this year. In that role he was accountable for the management and performance of day-to-day operations.

Prior to this appointment, Mr Hawkins spent 12 years as Insurance Australia Group’s Chief Financial Officer with responsibility for the overall financial risk profile of the company.

The company’s Chair, Ms Elizabeth Bryan, believes the appointment reflects the strength of its leadership team and expects it to support continuity and stability.

She commented: “Nick has a deep understanding of both global and domestic general insurance along with operational and financial experience, and this will ensure a smooth transition for IAG.”

The next phase of growth.

Insurance Australia Group’s new CEO appears up for the challenge of leading the company through its next phase of growth.

Mr Hawkins said: “I am excited to lead IAG during its next phase of growth and ensure the company emerges from the economic downturn as a strong, resilient organisation. Insurance plays a fundamental role in our society and I’m proud to work for and lead a company that is truly purpose-led and customer-focused.”

“Our purpose – to make your world a safer place – has never been more important than now as we continue to help our customers and communities recover from the devastating natural disasters of late 2019 and 2020, and the ongoing challenges resulting from climate change and the pandemic. I look forward to working with our people and our partners to continue to grow IAG and build on our work to meet the evolving needs of our customers and their communities,” Mr Hawkins added.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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