The decision by Nicholas Whitlam to resign as Chairman of NRMA Insurance has been generally welcomed by the market. Mr Whitlam will stay on the board, as well as retain his presidency of NRMA’s road services organisation, but his presumed adoption of a lower profile is expected to ease tension on the board of the country’s largest insurance company.

It will also give CEO Eric Dodd, who was surprised by Mr Whitlam’s Sunday announcement, a less confused profile with shareholders and the media.

Mr Whitlam’s attempts to turn his role into an executive chairmanship led to speculation about the relationship between the two leaders. This was exacerbated by boardroom tensions and, most recently, an ASIC investigation into market disclosure and corporate governance issues.

Mr Whitlam led the push to demutualise the NRMA. Last year he earned $494,000 for his chairman’s role, making him Australia’s highest paid non-executive chairman.

His successor is expected to be announced quite quickly, with some shareholder groups calling for an external appointment. However, several members of the NRMA board are seen as well qualified to take over the role.