Former Zurich CEO Senn Commits Suicide
May 31, 2016 by David Pilla
ZURICH – Zurich Insurance Group Ltd. has been shocked by the second suicide of a high-profile executive in three years, as the group announced the May 27 death of former Chief Executive Officer Martin Senn.
“It is with great shock and sadness that we must inform you of the sudden death of Martin Senn,” Zurich said in a statement. “His family informed us that Martin took his life (May 27).”
“With the passing of Martin, we lose not only a highly valued former CEO and colleague but also a close friend,” Zurich added. “Our thoughts are with his bereaved family and friends, to whom we extend our deepest sympathies.”
The insurer said “out of respect to Martin and to his family, we will not be making any further comment.”
Efforts to reach several equity analysts who cover Zurich Insurance were not immediately successful.
In his letter to shareholders in Zurich’s annual report, Tom de Swaan earlier noted management changes at Zurich were part of a number of disruptions that had taken place in recent years at the insurance group. De Swaan, as the group’s chairman, had also taken over the CEO’s role temporarily as part of a management transition
“In December 2015, our long-term CEO, Martin Senn, decided to step down by mutual agreement with the board and I have taken over as chief executive officer ad interim,” said de Swaan in his letter to shareholders in the annual report (Best’s News Service, March 4, 2016). “In January 2016, we appointed Mario Greco chief executive officer, effective March 7, 2016. During my time as chairman of the board and CEO ad interim, Fred Kindle, vice chairman of the board, has taken on certain additional responsibilities to ensure continued good governance.”
In a statement announcing his departure, Senn said at the time the group has moved effectively to recover from “some setbacks in recent months” (Best’s News Service, Dec. 1, 2015).
“After 10 very intense years with Zurich, I have decided to step down as CEO and to make way for new leadership,” Senn said at that time. “Zurich is a profitable, well-capitalized company with outstanding employees. It enjoys an excellent reputation with customers around the world and delivers attractive dividends to shareholders.”
Senn’s death comes nearly three years after the suicide of Pierre Wauthier, 53, the company’s chief financial officer at the time, who was found dead at his home on Aug. 26, 2013 (Best’s News Service, Aug. 29, 2013). Wauthier’s death was followed by the resignation of Chairman Josef Ackermann.
Two investigations ordered by Switzerland’s financial services regulator have cleared Zurich Insurance Group of any improprieties in the apparent suicide of Wauthier. The first investigation found Zurich Insurance exerted no “undue or inappropriate pressure” on Wauthier. The second “found no irregularities with regard to financial reporting,” the group said at the time (Best’s News Service, Nov. 4, 2013).
Greco had been CEO of Italy-based multiple-line insurer Assicurazioni Generali SpA since 2012 and led a three-year turn-around program to increase profits and strengthen Generali, an effort Greco will need to mirror at Zurich.
De Swaan said in his shareholders’ letter that Greco had previously headed both the life and general insurance segments at Zurich before moving to Generali, so Greco does know both sides of the business.
Earlier, de Swaan had said fourth-quarter results were disappointing and vowed the company is working on running more efficiently (Best’s News Service, Feb. 11, 2016.) The loss for the quarter was $424 million, compared with net income of $860 million during the previous year, due mainly to losses in the company’s general insurance unit.
Zurich Insurance Group Ltd. has a current Best’s Financial Strength Rating of A+ (Superior).
(By David Pilla, news editor, BestWeek: David.Pilla@ambest.com)
