QBE appoints Richard Pryce as interim CEO

QBE has tapped international boss Richard Pryce as acting chief executive as it continues a search for a permanent CEO.

Picture: Bloomberg

QBE Insurance has tapped international boss Richard Pryce as acting group chief executive, as it continues a search for a permanent replacement for Pat Regan following his abrupt departure last month.

The appointment sees Mike Wilkins return to his position as chairman, rather than executive chairman, QBE said in an ASX statement on Friday. The interim CEO appointment takes effect on Monday, and the insurer is progressing with an executive search for a permanent boss following a scandal that resulted in Mr Regan exiting suddenly last month.

He left after the board investigated a complaint by a US-based female employee. A review by MinterEllison on behalf of the board found material that fell short of the insurer’s code of conduct and ethics.

London-based Mr Pryce — who joined QBE in 2012 — will be paid fixed remuneration of £1.25m ($2.3m) a year inclusive of salary, pension, car allowance and any salary-sacrifice benefits. QBE will also meet the cost of insurance on death, total and permanent disablement, salary continuance and medical insurance.

QBE interim chief executive Richard Pryce.

If he achieves business and personal targets set annually by the board, Mr Pryce can be paid a ­potential short-term bonus of 150 per cent of fixed remuneration, in cash and shares. Outperformance of the objectives may result in a potential maximum short-term incentive of 225 per cent of fixed pay.

Mr Pryce is also eligible for an award of conditional performance rights equal to £1.1m, subject to achieving strategic performance hurdles while in the interim CEO role.

“I would like to thank Richard for accepting this interim role as we conduct an extensive search for a permanent replacement. Richard is well known to employees and investors and is well respected in the insurance industry,” Mr Wilkins said in the statement.

He outlined that Jason Harris had started in Mr Pryce’s former role as head of QBE’s international operations, and thanked Mr Pryce for reversing his decision to retire to step in as acting CEO.

“We are fortunate to have someone with his experience and deep understanding of QBE to lead us through this period,” Mr Wilkins said.

“Richard will continue to champion many of the initiatives we have under way across the group to build QBE for the future and is focused on maintaining the rigour of our cell reviews and further embedding and enhancing our Brilliant Basics initiatives. He is also an avid supporter of our ongoing focus on becoming a more customer-centred business.”

Mr Wilkins said QBE’s strategy was unchanged and the company was progressing with a global search to find a new CEO, noting the board would update the market at an “appropriate time”.

Mr Pryce’s contract has no fixed term but he intends to retire after a transition to a new permanent QBE chief executive.

The Australian understands search firm Russell Reynolds Associates is conducting the QBE CEO search after the abrupt exit of Mr Regan last month.

Johnson Partners — which has also worked for QBE in the past — is helping to fill a vacancy for the insurer’s head of Australia role ­vacated by Vivek Bhatia, who left to join ASX-listed Link as incoming CEO.

After joining QBE in 2012, Mr Pryce was appointed to lead its European operations the following year and then took the reins as head of international last year. He began his insurance career with RW Sturge syndicate at Lloyd’s, where he became claims director.

Westpac also had an executive reverse a decision to retire when it lost its CEO due to damning legal action by Austrac late last year.

Now Westpac CEO Peter King had announced his retirement from the finance chief role ahead of acting in the top job, following the departure of Brian Hartzer late last year. Mr King was permanently appointed as Westpac CEO this year for two years.