IAG has appointed new bosses to its UK and NZ divisions in a shake-up of its top-level executive ranks.

NZ CEO Ian Foy will return to the UK next month to manage the UK business. He will be replaced in the Auckland head office by Jacki Johnson, the current CEO of direct niche insurer The Buzz.

Mr Foy replaces Neil Utley, who has reached a “mutual agreement” to part ways with IAG.

Mr Utley, who was last week named as an investor in a £74 million ($128 million) buyout of UK stockbroking firm KBC Peel Hunt, told the UK Insurance Times he had always intended to retire from IAG, which he joined in 2006 when it bought his company, Equity.

“I wanted to work with IAG to find successors [and] it’s taken a little while to find the right person.”

Group Executive Leona Murphy will replace Ms Johnson as CEO of The Buzz while retaining her existing responsibilities for corporate development and strategy.

IAG CEO Mike Wilkins says Mr Foy’s track record in improving the NZ business and experience in the UK intermediated motor market made him a stand-out candidate to lead the UK business.

“Ian has extensive insurance industry experience, which will be crucial as he drives the comprehensive remedial plan we announced last month,” Mr Wilkins said.

Mr Foy returns to the UK after two years as CEO of the NZ business, and a further five years running NZI. Prior to his stint in NZ he worked for more than a decade in various roles in the UK insurance industry for Aviva and General Accident.

Ms Johnson will assume her new role as head of the NZ business from November 1, with NZI Executive GM Karl Armstrong serving as NZ CEO on an interim basis.

Mr Wilkins says Ms Johnson’s experience in workers’ compensation will be invaluable to the future of the NZ business should the state-run Accident Compensation Corporation be opened up to competition from private insurers.