Suncorp Group Ltd (ASX: SUN) shares are ending the week on a positive note.
In morning trade, the insurance giant's shares are up 1% to $21.69.
As a comparison, the ASX 200 index is up 0.6% at the time of writing.
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Why are Suncorp shares rising?
Investors have been buying the company's shares this morning after it made a big announcement.
According to the release, Suncorp's chair, Christine McLoughlin AM, has decided to retire at the conclusion of this year's annual general meeting in September.
The release notes that Ms McLoughlin has served on the Suncorp board for 10 years, including seven years as its chair.
It certainly was a busy period while McLoughlin was at the helm. During the period, Suncorp significantly simplified its business to transition to become a pure-play general insurer.
Suncorp notes that Ms McLoughlin committed to finalising the sale of Suncorp Bank including the return of capital to shareholders while also ensuring Suncorp is well positioned for the future. Having delivered on these commitments, she has decided to retire.
Commenting on her exit, Ms McLoughlin said:
I am proud of the value that has been delivered to our shareholders, through a period when we have faced significant challenges, including the COVID-19 pandemic, supply chain disruptions, and unprecedented weather events, and a very complex process to sell Suncorp Bank, whilst also delivering meaningful outcomes for our customers.
During my tenure I have prioritised ongoing renewal of the Board, with skills complementary to our strategic direction and I have enjoyed working with a committed group of Board colleagues. Together, with our CEO Steve Johnston, we have led Suncorp through a significant transformation to become a pure-play general insurance company.
New chair selected
Suncorp has been quick to find a replacement for Ms McLoughlin.
The release reveals that its board has elected current non-executive director Duncan West as her successor. He will assume his new position as chair when McLoughlin retires.
The insurance giant highlights that West has been on the board for almost four years and is the chair of the risk committee and a member of the audit committee. It notes that he has deep industry, governance, and board expertise with more than 40 years of experience in the insurance and financial services sector.
McLoughlin thinks West is a good pick for Suncorp and that it will be onwards and upwards for the company under his and CEO Steve Johnston's stewardship. She said:
Suncorp is well positioned to deliver on its ambition, and I am confident Duncan, and our CEO Steve Johnston together will continue to lead the business successfully into its next chapter.
Suncorp shares are up 10% over the past 12 months.
