Search by ticker code:
Generic filters

QBE (ASX:QBE) shares drop on CEO exit

QBE Insurance Group Ltd (ASX: QBE) shares are down over 4% after the insurer announced the departure of its CEO.

QBE CEO change

Pat Regan, the CEO of QBE, will be leaving the company after being in the job for three years.

Why? QBE said there had been “an external investigation concerning workplace communications that the Board concluded did not meet the standards set out in the ‘Group Code of Ethics and Conduct”.

QBE Chairman Mike Wilkins said: “We are committed to having a respectful and inclusive environment for everyone at QBE. The Board concluded that he had exercised poor judgement in this regard.

While these are challenging circumstances the Board recognises and thanks Mr Regan for his hard work and contribution to strengthening QBE. However, all employees must be held to the same standards.”

According to reporting by the Australian Financial Reviewa complaint about Regan over inappropriate communications was made 10 days ago by a female employee. The AFR said QBE wasn’t going to comment on the details of the complaint, but ‘sources’ said the investigations found definitely that the complaints against Regan did not constitute sexual harassment.

What will QBE do?

Mr Wilkins will assume the role of Executive Chairman and take over day to day running of QBE. The company will mount an extensive internal and external international search for a new CEO.

QBE is going to put in place additional initiatives in the coming weeks to develop an inclusive culture in QBE with a culture review and create an additional avenue for employees to raise concerns safely.

Mr Wilkins said the fundamentals of the business are strong, though I’m not interested in buying shares. Insurers seem to get hit every time there’s a difficult natural catastrophe or a recession. I prefer ASX growth shares that can keep growing regardless of what happens, such as the three I wrote about here.

If you're anything like me, you might be thinking now is a good time to have cash 'sitting on the sidelines'.

Whether you have $2,000 or $50,000, our new analyst report has 11 stock ideas could help transform your portfolio INSTANTLY. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.