LONDON (Reuters) - Insurance industry veteran Henry Engelhardt, the chief executive of motor insurer Admiral Group Plc (L:ADML), is stepping down from his role in 2016, in the latest of a series of management reshuffles in Britain's insurance sector.
Engelhardt, 57, who has led Admiral since its creation in
June 1991 and presided over its transition from a start-up to a publicly listed company with a 4 billion pounds market capitalisation, will be replaced by co-founder and current Admiral Chief Operating Officer, David Stevens.
The U.S. entrepreneur is Admiral's top shareholder, according to Thomson Reuters data, with an 11.7 percent stake.
Stevens, 51, becomes the third executive to take the helm at a major UK insurance company in recent weeks, following the appointment of Mike Wells at Prudential (L:PRU) and Bruce Hemphill at Old Mutual (L:OML).
In a statement announcing the changes, Admiral Group Chairman Alastair Lyons said there was "no way" to measure Engelhardt's contribution to the company, which employs over 7,000 people and serves more than 4 million customers.
Shares in Admiral were trading down 2.1 percent at a two-month low of 1,442 pence in early trading, compared with a 0.2 percent rise in the broader FTSE 100 (FTSE) as investors reacted to the news.
Shore Capital analyst Eamonn Flanagan reiterated his firm's 'sell' recommendation on the stock, despite holding Engelhardt's successor in "high regard".
Stevens hinted at a possible future role for Engelhardt following his retirement and said he was already talking about ways in which his co-founder might continue to make his unique skills and experience available to the Group after he steps down as CEO.
"Don't bury me yet, Guys!", Engelhardt said in a statement.
"I still have 12 months on the job and lots to accomplish in that time. But I see the wealth of management talent we have rising up in the organisation and I think that in a year it will be the right moment to start the transition towards that younger, very talented team," he said.