A flood of goodwill towards IAG MD and CEO Peter Harmer has followed the announcement of his plan to retire at the end of the year.

As insuranceNEWS.com.au has reported, 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 Mr Harmer is “widely regarded as one of the best insurance executives of his generation” and his post on LinkedIn announcing his departure has sparked more than 2300 reactions and almost 250 comments.

“A privilege to have known and worked with you Peter for many years,” Swiss Re local head Mark Senkevics posted.

Aon CEO Commercial Risk Solutions Lambros Lambrou commented that Mr Harmer leaves “a strong legacy you can rightly be proud of”.

Mr Harmer says in his post that the decision is something he has “been thinking about for some time, and have not made lightly”.

“But after almost five years as CEO, and 10 years with IAG, I feel this is the right year to make the transition. IAG is in a great position, with a strong balance sheet and strong leadership team, to manage through the current uncertainty and into the future.

“Leading IAG and the people who make it is – and always will be – a tremendous privilege.”

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.

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”, Ms Bryan said.

Industry observers say they expect the final decision to come down to the two leading internal candidates, Mr Hawkins and Mr Milliner.

CFO Australia Michelle McPherson has been appointed Acting Group CFO.

Mr Harmer will retain oversight of the overall strategic direction and performance of the group during the transition.

“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.