Just days after the alleged suicide of the group’s CFO, Zurich Insurance Group chairman Josef Ackermann has stepped down. The news comes during a week of turmoil for the company, which has left investors worried about the future direction of the group.
It was reported on August 2 that Zurich Insurance’s CFO Pierre Wauthier had been found dead in his home after a suspected suicide. The news sent shockwaves through the industry, and caused the share price of Switzerland’s largest insurer tumbling 3.5 percent.
Ackermann stepped down barely a year after joining the company as chairman, announcing that he believed Wauthier’s family held him partly responsible for his death. Wauthier’s family are reported to believe Ackermann responsible for placing the CFO under great pressure to “shake up” the insurance giant.
In a statement, Ackermann said: “The unexpected death of Pierre Wauthier has deeply shocked me. I have reasons to believe that the family is of the opinion that I should take my share of responsibility, as unfounded as any allegations might be. To avoid any damage to Zurich’s reputation, I have decided to resign from all my board functions with immediate effect.”
The news of Ackermann’s resignation caused the share price of Zurich to fall even further, dropping by another 2.5 percent by the close of play. Ackermann’s fall from grace comes just a year after he stepped down from his ten-year role as CEO of Deutsche Bank, which saw Germany’s largest financial institution become a leading player in the global investment world.
Peter Eliot, an analyst at Berenberg Bank in London, told reporters of the impact of the announcement: “Everybody has questions, and there’s a lot of speculation. It is unlikely that investors will have all their questions answered. Unless they can say something concrete, then it will be tough for the company to put market fears completely to rest.”
Vice chairman Tom de Swaan has temporarily replaced Ackermann, while CEO Martin Senn and the rest of the board would search for a permanent replacement. Last year the company changed its name from Zurich Financial Services in an effort to reflect the streamlining of its operations. 2012 saw the company record operating profit of $4.1bn, a slight drop on 2011’s $4.2bn.