IAG says search underway for successor as CEO Harmer sets departure for year-end

Australian insurer IAG's managing director and chief executive officer (CEO) Peter Harmer is to retire at the end of 2020. The company says a search process is underway to find a successor from internal and external candidates.

Harmer, who has led the insurers for five years, said that it is the "right time to hand over the reins to my successor, who will lead the next stage of IAG’s growth and evolution."

Harmer will remain responsible for the overall strategic direction and performance of the group during the transition period and will directly lead the company’s response to the COVID-19 emergency. A flexible nine-month period of transition has been agreed with Harmer to ensure a smooth changeover.

The company's board has appointed IAG chief financial officer Nick Hawkins as deputy CEO with accountability for the management and performance of IAG’s day-to-day operations during the transition period. He will start in this role immediately.

Additionally, Michelle McPherson, CFO Australia, has been appointed acting Group CFO. Before joining IAG, McPherson was chief financial officer and deputy chief executive officer for nib Group.

IAG's CEO Australia Mark Milliner will continue to lead the Australian business and remain focused on business growth, and responding to the bushfire recovery process, as well as the ongoing operational challenges of COVID-19.

IAG chairman Elizabeth Bryan said: “The arrangements we have announced today reflect the strength and stability of our senior management team and will ensure the smooth operation of the company through challenging times. The Board has been in discussion with Mr Harmer for some time about his plans, following a period of illness last year, and the company is well prepared for a transition.”

He added: “Peter has been pivotal to the creation of a more innovative and customer-focused IAG. He has taken important steps to simplify the company while driving a culture that values digital innovation and puts the customer first. Peter will leave IAG in a strong position for future success.”

Harmer commented: “My immediate priority is guiding IAG’s response to, and recovery from, COVID-19 as well as managing our key external stakeholder relationships in what is an increasingly complex and dynamic environment.

“As confirmed in IAG’s business update on 30 March 2020, the underlying performance and financial position of IAG remain strong. We are well-placed to maintain and build on that, as we meet customer needs through our core insurance offerings and adjacent and complementary services, conducted under an iconic range of leading brands.”