Suncorp's new boss an agent for change
Sydney Morning Herald
Thursday July 2, 2009
SUNCORP METWAY has gone offshore to recruit a top British insurer as its chief executive, in an appointment which is expected to pave the way for an exit from banking for the Brisbane financial services giant.The 59-year-old Patrick Snowball, a one-time army tank commander, is expected to move early to place Suncorp's troubled banking business under review when he takes charge in September.With a track record of overseeing acquisitions, outsourcing and aggressive cost cuts during various executive roles with the British insurance giant Aviva, Mr Snowball is viewed as the change agent needed to boost shareholder returns for the financial services giant.Still, he comes at a cost. His four-year contract is set to deliver a cash-and-share package of more than $27.5 million, putting his pay scale in line with the nation's top bankers.The appointment caps off a four-month search for a new chief executive following the resignation of John Mulcahy in February after a string of profit downgrades, a share slump and funding problems that almost led to a forced sale of the banking arm.Mr Snowball said it was too early to discuss plans for Suncorp before formally taking charge, although he has privately floated some initial views with the board."My belief is the true worth of this company is not really appreciated at present. I know this is a huge frustration for the board and all the people in the organisation," he said yesterday."This company has quality people and quality assets, and my role is to demonstrate that quality for the benefit of all stakeholders."What will be expected of me in the early days is some direction and leadership, and hopefully [to] reinstate confidence in the company and its people," he said.Despite the lack of direct Australian financial services experience, analysts said the appointment appears to be just what Suncorp needed as it attempted to win back investor support."At face value, Suncorp's new chief executive ticks most of the important boxes, in particular two decades of experience in top-level insurance management," said a Deutsche Bank insurance analyst, James Coghill. Still, Suncorp shares yesterday finished 1.7 per cent lower at $6.58 in a sharply weaker market.Mr Snowball was most recently chairman of insurer Towergate, but spent the bulk of his professional career at Aviva and its predecessor Norwich Union, which ranks as the world's fifth biggest life and general insurer.He was behind an unsuccessful 7 billion ($14.3 billion) attempt to acquire the insurance business of the struggling Royal Bank of Scotland with partners Apollo Management and BC Partners.Mr Snowball left Aviva in early 2007, shortly after being passed over as the insurer's chief executive.
© 2009 Sydney Morning Herald
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