New chief executive to be appointed mid-year as vice-chairman steps in
Rolf Hüppi ended a decade's rule at Zurich Financial Services with the announcement that he was to step down as chairman.
His announcement last week follows his decision to quit as chief executive in February.
Last month, Insurance Times exclusively revealed that an internal company report blamed him for overstretching the company to buy Eagle Star in 1998.
Zurich's shares rose by 5.74% on Monday as a result of the announcement.
The company has said it will appoint a new chief executive by the middle of the year.
Some commentators have voiced fears that Hüppi's departure would leave a power vacuum at the top of Europe's third largest insurer, with the possibility of a dangerous lack of strategy.
But Commerzbank analyst Chris Hitchings said: "What his stepping down as chairman tells us is that the shortlist of candidates for chief executive have all said they will not take the job unless he steps down as chairman.
"His decision to step down as chairman tells you the new person is emerging - and he has said Hüppi must go, so that it can be presented as Hüppi's decision and not the decision of the new chief executive."
Hüppi, 58, will be replaced as chairman by Lodewijk van Wachem, Zurich's vice-chairman, subject to his re-election at the annual meeting on 16 May.
But the 70-year-old's appointment is seen by some as a temporary move until Zurich finds a more permanent replacement.
