Zurich Australia is to split its local operations into two separate businesses as part of a global strategy.

Under the arrangement CEO David Smith will leave the company at the end of the month.

The company will then align with its Swiss parent’s global structure, with a clear focus on two operating businesses – General Insurance, and Life Insurance & Investments.

A statement issued this afternoon by Zurich says the move “will enable the two businesses to provide an even greater depth of support and service to brokers and advisers and their customers”.

Shane Doyle has been appointed CEO, General Insurance Australia, and Colin Morgan CEO, Life Australia. This will incorporate the investment management business, with GM Investments Matt Drennan being appointed EGM – Investment Management.

It’s understood that Mr Doyle will become the Zurich country manager.

CFO Iain Howie will move to a new role within the Zurich group as COO for the Middle East-Africa region.

To support the move to two clear operating businesses, two new CFOs – William Milner for General Insurance and Raf Uy for Life – have been appointed. These are internal appointments.

A spokesman told insuranceNEWS.com.au only a “small number” of positions, mainly in the shared services area, have been declared redundant.

Zurich Australia Chairman Terry Paradine says the new model will enable Zurich to “singularly focus on seeking opportunities in highly competitive markets”.

“Equally importantly, the new structure will enable us to give an even greater depth of support and service to intermediaries and customers.”

He paid tribute to Mr Smith, who joined Zurich in May 2006 “and has led this transformation process”.

“David has established a strong, dynamic business [that is] well placed to face future challenges,” he said.

Mr Smith told insuranceNEWS.com.au he will leave the company confident that he has met the challenges put to him five years ago by former Zurich Group CEO Jim Schiro.

“Among the things he wanted me to do was to enhance the image of Zurich in Australia… and be an innovator,” he said.

Mr Smith and his management team introduced flood insurance to the commercial market in 2008, and he was a strident critic of state taxes on premiums. He also advocated industry preparedness for climate change.

“We took a lot of criticism when we introduced flood insurance, but I think history will prove we were right to do so,” he said.

“I’m very proud of what the team at Zurich has achieved with me during my time here.”

Mr Smith says he will take a break after March 31, “but I’ve been 32 years in financial services and I want to remain in it”.