IAG has appointed William McDonnell, a London-based senior leader in finance, risk and climate action, as CFO following a search to replace Michelle McPherson, who is retiring from the role.

Mr McDonnell, who spent 15 years at general insurer Royal & Sun Alliance (RSA), will relocate from the UK to Sydney to take up the role effective December 11.

“William brings extensive experience in financial and capital markets to IAG, and a deep understanding of regulatory environments, finance, risk and climate risk,” CEO Nick Hawkins said today.

“In particular, his expertise in capital strategy and identifying trends and managing climate risk in a global context, will play an important part in creating a stronger and more resilient company. I look forward to welcoming William to IAG.”

Mr McDonnell joins IAG from the global governance body, the Integrity Council for the Voluntary Carbon Market, where he has been COO for the past two years.

Previously, he was RSA Group CRO and also held senior finance and capital roles including Group Director of Financial Reporting and Control, and Head of Economic Capital, Corporate Finance and Capital Management.

RSA, formerly a FTSE 100 insurer, was acquired by Danish insurer Tryg and Canada’s Intact Financial Corporation in 2021, when Mr McDonnell left the firm. RSA operates in regions including the UK, Ireland, Canada and Scandinavia.

Mr McDonnell created and chaired RSA’s ESG Committee, was a founder member of the Bank of England’s Climate Financial Risk Forum, and a member of the University of Cambridge ClimateWise Council, a global network of insurance industry organisations. He chaired the CRO Forum Emerging Risk Initiative, leading its research into climate risks and insurability.

He has also held roles at HSBC Investment Bank, Aviva, the UK Financial Services Authority and Deloitte.

Mr McDonnell, who holds a Bachelor of Arts in Classics from Oxford University, has three adult children and will be relocating to Sydney with his wife.

IAG says Ms McPherson will remain with the company until the end of the calendar year. The insurer announced in May that she was retiring, after moving into the role in 2020. Previously, she was CFO and Deputy CEO for Nib Holdings.