Direct Line CEO departs with immediate effect citing ‘significant headwinds’
UK insurer Direct Line Insurance Group’s chief executive officer has stepped down with immediate effect following a period of “significant headwinds” for the business.
Penny James has “agreed” with the Direct Line’s board that she will step down as CEO and as a director.
The company’s board has picked Jon Greenwood to serve as acting CEO while it conducts a search to identify and appoint a successor CEO. Greenwood is currently the chief commercial officer of Direct Line.
James joined the company as chief financial officer in late 2017. She subsequently became CEO in May 2019. During her time as CEO, she led the company through strategic progress, technology transformation and the overall capability across the business.
Danuta Gray, chair of Direct Line Group, thanked James for her contribution, dedication and commitment to the company. Gray said “[James] deserves great credit for the way she led the business through the pandemic, in a very challenging market.”
The chairman also highlighted that Greenwood and the board’s initial priority would be on “driving our performance and restoring balance sheet resilience, following the significant headwinds the business faced in recent months.”
Direct Line has announced new strategic reinsurance arrangements, which are expected to increase the Group’s year-end 2022 solvency capital ratio by around 6 percentage points. “We will continue to focus on rebuilding our capital position,” Gary said.
James commented: “It has been a privilege to lead Direct Line Group for nearly four years and to work with such an amazing group of colleagues. While the business was impacted by significant headwinds at the end of 2022, the Group has continued to make strategic progress.
“I am proud of what the business has delivered for customers, where our technology transformation has seen improved digital capability in our core business areas, setting the Group up for the future. I wish Jon and the team every success and have no doubt they will build on the underlying strengths of the business.”
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