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Member, Beacon International Group, Ltd.
LONDON--Bob Mendelsohn has resigned as chief executive officer of Royal & SunAlliance Insurance Group P.L.C., effective immediately.
Bob Gunn, chief operating officer of the London-based multiline insurer, will take over the CEO role temporarily while a replacement for Mr. Mendelsohn is found, RSA said in a statement.
Mr. Mendelsohn, who became CEO of RSA in 1997, has been under fire recently as RSA has suffered poor results and ratings downgrades and as its share price has fallen. RSA's shares closed Thursday at 120 pence ($1.87), down from a 52-week high of 420 pence ($6.54).
For the first half of 2002, RSA recorded a loss of £291 million ($443.6 million), compared with a loss of £340 million ($481.2 million) for the same period in 2001. RSA attributed the loss in 2002 to increases in reserves for claims stemming from the Sept. 11, 2001, terrorist attacks and to short-term investment losses.
"Bob Mendelsohn has led the group through many difficult times for the insurance industry. He has set a firm strategic direction and has done much to drive change in both the business philosophy and in the culture of the group," Sir Patrick Gillam, RSA's chairman, said in the statement. "However, in order to exploit the work done to date, it is the board's view that the interests of the group will be best served by a change in the top management."
In addition, RSA said Thursday that is looking at various ways to boost its capital, including a private share issue.