QBE CEO Frank O’Halloran has delivered his 14th and final annual report as his heir apparent and current Global Underwriting CEO John Neal prepares to take the reins of the global insurer.

Mr Neal will be only the third man to lead QBE when Mr O’Halloran steps aside in August, and faces a tough road to rebuild the company’s share price and reputation.

Mr O’Halloran will take six months of “gardening leave” before returning as a non-executive director on the QBE board, following the path of his predecessor John Cloney. Unlike Mr Cloney, Mr O’Halloran has said he has “no desire” to become chairman of the company.

Since taking over as CEO in January 1998, Mr O’Halloran has overseen around 140 acquisitions, growing premiums from $US1.5 billion ($1.38 billion) to $US18 billion ($16.67 billion) and building QBE into a global behemoth with a market capitalisation of $13 billion.

He joined QBE in 1976 as Group Financial Controller when QBE was a small player in the underwriting scene, with a market value of $7.5 million and gross written premium of $93 million.

His achievements in turning a provincial insurer into an international brand have been recognised by the Harvard Business Review, which in 2010 ranked him among the world’s top 100 chief executives. In the same year, Mr O’Halloran received the highest international recognition for an insurance executive with induction into the Insurance Hall of Fame.

But QBE’s risk profile has also broadened. Profit after tax in 2011 fell by 45% to $US704 million ($652 million), and QBE’s share price is currently trading at an eight-year low after reaching a peak of $26.45 in September 2007.

Mr Neal, who joined QBE in 2006 and was appointed CEO of Global Underwriting Operations in 2010, has promised “evolution and not revolution” under his watch.

“It might be a different pair of shoes, but it’s the same QBE suit,” he said last week.

Until 2004, Mr Neal was owner and CEO of Lloyd’s managing agency Ensign. Prior to that he held senior roles in Lloyd’s and other market organisations.

Credit Suisse analyst John Heagerty says Mr Neal might need to build relationships with QBE’s overseas investors, many of whom haven’t met him.

Mr Heagerty says Mr Neal is unlikely to share Mr O’Halloran zeal for acquisitions, preferring smaller bolt-on purchases.

He told insuranceNEWS.com.au that considering the breadth of Mr O’Halloran’s acquisition program over the years, some investors are concerned Mr Neal might uncover hitherto unreported issues.

“The only area of real concern for certain investors is the potential for the writedown of goodwill on previous acquisitions,” he said.

“We think it’s unlikely, but if you have made 140 acquisitions and you have never taken any hits on your goodwill, that’s an impressive feat.”