Zurich's Chairman Resigns After CFO's Suicide

Zurich's Chairman Josef Ackermann resigns

by Mark E. Ruquet

Zurich Insurance Group’s Chairman, Josef Ackermann, has resigned after the company’s Chief Financial Officer Pierre Wauthier committed suicide.

“The unexpected death of Pierre Wauthier has deeply shocked me,” Ackermann said in a statement.

Ackerman, 65 years old, said he resigned to avoid damaging the company’s reputation, saying he believes the Wauthier family holds him partly responsible for the CFO’s death. Even though the allegations are unfounded, Ackerman said he sees “the possibility of a continued successful Board leadership to the benefit of Zurich called into question.”

Reports say no reason has been given why the Wauthier family would hold Ackerman responsible for his death.

Wauthier, 53 years old, was found dead earlier this week in his home in Switzerland. Wauthier joined Zurich in 2006, becoming CFO in 2011.

Zurich named Board Vice-chairman Tom de Swaan acting-chairman.

Earlier this month, the carrier, considered the third largest in Europe, reported net income dropped 17 percent for the first half of this year compared to last, to $1.85 billion. The drop reflected insurance losses from flooding in Europe and tornadoes in the United States costing close to $200 million, along with other large losses and continued decline in investment income.

Aside from the losses, the company has seen tumult within its management ranks. Reuters notes that Zurich’s general insurance head, Mario Greco, left last year to become head of Italian insurer Generali and Kevin Hogan, head of its life insurance arm, left two weeks ago to become AIG’s head of consumer insurance.

Ackerman, who joined Zurich last year, was head of Deutsche Bank for a decade in which the bank saw considerable growth. Despite its success, the bank became embroiled in controversy during the Great Recession that included a number of lawsuits from customers and official investigations, reflecting negatively on Ackerman’s tenure. Last year, the bank paid more than $200 million to settle allegations that it misled the Department of Housing and Urban Development about the quality of mortgages that eventually defaulted.