IAG MD and CEO Peter Harmer will retire at the end of this year after going through “a period of illness” last year, the insurer announced today.

A nine-month transition period has been agreed and the search is underway for a replacement. IAG says it wants a “strong field of internal and external candidates”.

Chairman Elizabeth Bryan says the board has appointed CFO Nick Hawkins as Deputy CEO, with accountability for the management and performance of IAG’s day-to-day operations during the transition. He starts in this role immediately.

CEO Australia Mark Milliner continues to lead the Australian business and “remains focused on business growth, and responding to the bushfire recovery process, as well as the ongoing operational challenges of COVID-19”.

CFO Australia Michelle McPherson has been appointed Acting Group CFO.

“The board has been in discussion with Mr Harmer for some time about his plans, following a period of illness last year, and the company is well prepared for a transition,” Ms Bryan said.

Mr Harmer remains responsible for the overall strategic direction and performance of the group during the transition period.

Ms Bryan says he is “widely regarded as one of the best insurance executives of his generation. Peter has been pivotal to the creation of a more innovative and customer-focused IAG”.

“He has taken important steps to simplify the company while driving a culture that values digital innovation and puts the customer first. Peter will leave IAG in a strong position for future success.”

More details in our Daily bulletin at 4.45pm.