John Balmforth vacates AMI top spot as IAG beds in
AMI Insurance, the Christchurch-based firm forced to seek a government bailout in the wake of the earthquakes, says long-serving chief executive John Balmforth will step down.
BUSINESSDESK: AMI Insurance, the Christchurch-based firm forced to seek a government bailout in the wake of the Canterbury earthquakes, says chief executive John Balmforth will step down after 17 years at the helm.
In December, Insured Australian Group agreed to buy AMI for $380 million, the culmination of AMI’s search for new capital after the Canterbury earthquakes drained its reserves and drove up reinsurance costs, leading to a government bailout.
“We have appreciated the passion and commitment demonstrated through the sale and purchase process and the contribution John has made as we have welcomed AMI to the IAG family,” IAG chief executive Jacki Johnson said.
The company will immediately start a process to identify and appoint an executive general manager.
Mr Balmforth was in charge at AMI when it built up a portfolio of insured properties which critics later said were too concentrated in one market, Christchurch, contributing to the $705m loss that saw the company reach out to the government for taxpayer support.
His tenure sparked controversy last September when it was disclosed he took home a salary of nearly $1m in 2011.
The payment comprised a salary of $869,369 and a bonus of $122,700, which related to the previous financial year’s performance, before the first of a series of major quakes wrecked the country’s second largest city.
Around 18% of AMI’s exposure was in the Christchurch market, despite only 9% of the country’s population living there.
Christchurch had not been previously considered high risk for earthquakes, compared with other parts of New Zealand.
Hannah Lynch
Mon, 23 Apr 2012
Mon, 23 Apr 2012
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John Balmforth vacates AMI top spot as IAG beds in
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