By Eric Johnston
QBE boss Frank O'Halloran will remain in the role for the forseeable future, the insurer's chairman Belinda Hutchinson said today.
Ms Hutchinson gave the strongest indication yet that any successor to Mr O'Halloran would come from QBE's own ranks.
Earlier this week BusinessDay reported speculation QBE could be planning for Mr O'Halloran's retirement. The speculation, which swept through investment markets, followed a report in specialist British publication Insurance Investor that Peter Harmer, the Australian-born former Europe head of global insurance brokerage Aon, was being lined up to take charge of the underwriting giant.
QBE declined to comment on the report or answer specific questions but issued a short statement late on Monday saying "rumours that it has agreed on a CEO replacement are completely unfounded".
Given ongoing speculation over the timing of Mr O'Halloran's departure, fund managers and analysts have contacted QBE in recent days looking for guidance on the matter.
This morning QBE said reports suggesting that QBE is searching for an external replacement for the Mr O'Halloran "are completely false".
"QBE has a long standing and successful succession planning process due to the depth of its high quality management team," Mrs Hutchinson said.
"This team is ably led by Frank, who will remain the CEO for the foreseeable future".
"Frank has publicly stated his interest and willingness to continue as CEO," she added.
Shares in QBE were 18 cents higher at $16.67 in late morning trade.
Recruitment of an outsider had seemed at odds with the strong message QBE had been sending to the market that it was likely to promote from within. In recent years its chief operating officer, Vince McLenaghan, has emerged as the likely successor. Elsewhere, QBE's European boss Steven Burns is also regarded as a strong contender.
In a management shake-up, Mr McLenaghan was last month moved to head QBE's Australian and Asian business, the smallest of its world operations.
Mr O'Halloran, 64, was widely believed to be planning to retire at the end of 2007, but opted to put this on the back burner as the economic downturn took hold.
He recently said he had intended to steer QBE through the financial crisis "stronger than ever".
Mr O'Halloran has said he is eyeing several acquisitions of stressed insurance companies in the wake of the market downturn.
ejohnston@theage.com.au