John Butler announced on Friday that he has resigned as CEO of Zurich Financial Services Australia. A replacement has already been named: overseas appointment Tom Brown.

While Zurich was at great pains to deny the resignation was linked to the Australian Prudential Regulation Authority’s investigation into some of the group’s 2000 financial reinsurance deals, some media commentators weren’t convinced yesterday. They pointed to the timing of the announcement (Friday, thereby avoiding the issue running hot for a week) and the fact that Mr Butler was a senior Zurich executive when the reinsurance deals were made. He was CFO throughout 1999 to 2001 and became CEO in 2001. 

Whether Mr Butler was pushed or jumped, the exit strategy was obviously not a spur of the moment thing.

Mr Brown is an Australian, but is not well known in the local industry. A former president of the Insurance Institute of London, he began his career at Royal Insurance in Australia in 1971, rising to senior executive and board roles both locally and in Britain. He was president and CEO of Lloyd’s Japan from 1998 to 2001, later becoming Chairman and CEO of Pathos Partners, a consultancy specialising in providing international advice on investment and venture capital projects.

Martin South, CEO of Zurich’s international business, says Mr Brown’s appointment is an “important step in accelerating Zurich Australia’s role in the group’s overall global business mix”.

“We believe his international experience, in particular, will be of great value to the Australian business.”