The Suncorp Group Ltd (ASX: SUN) share price has dropped lower this morning after the insurance and banking giant announced the surprise exit of its chief executive officer.
At the time of writing the Suncorp share price is down 1% to $13.77.
What was announced?
This morning Suncorp announced that chief executive officer and managing director, Michael Cameron, will be leaving the company after almost four years in the top job and seven years as a board member.
Chairman Christine McLoughlin said that while Mr Cameron had made a considerable contribution with the digital transformation of Suncorp and navigated the business through a period of unprecedented regulatory change, now was the right time for change.
She believes that a change of leader "will provide the opportunity for the company to enhance its performance in a highly competitive and challenging external environment as Suncorp seeks to strengthen its core businesses by focusing on its customers, products and brands."
In order to ensure that there is a smooth transition, Mr Cameron has agreed to remain employed in an advisory capacity until August 9. This is two days after the date the company intends to release its full year results for FY 2019.
In the meantime, the company's chief financial officer, Steve Johnston, has stepped up as the company's acting CEO and Jeremy Robson will step into the acting group CFO role.
Ms McLoughlin feels the company is in safe hands during this interim period, believing that Mr Johnston is best placed to lead Suncorp and build on its multi-channel capability.
She said: "Steve is highly regarded by his peers and has successfully served in various leadership roles in his 13 years at Suncorp. He has played an integral role in the transformation of Suncorp."
Trading update.
Whilst unexpected changes at the top rarely go down well with the market, shareholders will be relieved to know that the change doesn't appear to have been made in relation to its performance in FY 2019.
According to the release, Suncorp is performing to expectations in the second half.
The release advises: "While the external operating environment remains challenging, Suncorp confirms its FY19 cash earnings are in line with market expectations. As noted at the interim result the external operating environment including natural hazards above allowance, investment market performance and unforeseen regulatory costs will impact the Group's FY19 reported result and outlook."
Elsewhere in the sector today, the Insurance Australia Group Ltd (ASX: IAG) share price and the QBE Insurance Group Ltd (ASX: QBE) share price are also down 1% this morning.
