QBE CEO Regan leaves after conduct investigation

QBE group chief executive Pat Regan is leaving the global firm immediately after an external investigation into his workplace conduct found he violated the company’s code of ethics and conduct.

It’s understood that there was a formal complaint issued to the company by a female employee around a week ago. No further details have been released. Mike Wilkins, QBE chairman, commented in an official statement to the Australia Stock Exchange: “We are committed to having a respectful and inclusive environment for everyone at QBE. The board concluded that [Regan] had exercised poor judgement in this regard.”

The statement continued: “While these are challenging circumstances, the board recognises and thanks Regan for his hard work and contribution to strengthening QBE. However, all employees must be held to the same standards.” Amid Regan’s departure, Wilkins will oversee QBE as executive chairman while the firm conducts an internal and external search for a new chief executive. The firm also saw the departure of Australia Pacific chief executive Vivek Bhatia last month; his role has yet to be filled.

Sydney-based Regan had been with QBE since 2014. His first role with the firm was as group chief financial officer. He subsequently became chief executive of Australia and New Zealand before taking on the role of group chief executive in January 2018.

Prior to QBE, Regan also held senior roles at Axa, Aviva, RSA and Willis (now Willis Towers Watson). The Australian giant recently announced their first-half 2020 results, with Regan bullish despite an H1 after-tax loss of US$712 million — compared with a US$463 million profit in H1 2019. The firm’s results were impacted by a Covid-19 underwriting loss of US$335 million, and a US$90 million net investment loss (compared with a US$755 million investment profit in H1 2019). It had a higher than anticipated catastrophe experience and adverse prior accident year claims development.

At the time, Regan noted their “greatly-strengthened capital base” put them in a good position to capitalise on pricing and growth potential. Despite recent events, Wilkins emphasised that QBE’s fundamentals remain strong.

He similarly noted: “QBE is successfully navigating this period of uncertainty [of Covid-19], and the group’s demonstrable financial strength positions us well to capitalise on accelerating pricing momentum and emerging organic growth opportunities.”

QBE’s stock price slumped (as of 10:48am Sydney time) 5.2% to A$10.06 (US$7.43).

Source: Insurance Asia News