Mr Gary Owens has unexpectedly resigned as managing director of Hibernian General Insurance, the Republic's largest insurance company.

A spokeswoman for Hibernian said Mr Owens's decision to leave the company had been entirely personal and had no connection with the company's recent decision to break ranks with industry colleagues by offering motor premium discounts to drivers with no penalty points.

She said Mr Owens would be pursuing personal business interests. Mr Owens himself could not be contacted yesterday, but it is believed the nature of his new interests, possibly in the insurance area, will become clear over coming months.

The Hibernian spokeswoman said Mr Owens had been considering his departure for some time, adding that yesterday's announcement had not come as a surprise to remaining senior executives.

Hibernian remains fully committed to reducing premiums by 10 per cent for drivers who have no penalty points on their licence, according to the spokeswoman.

She said the company's group chief executive, Mr Bryan Jenkins, had met the Tánaiste, Ms Harney, on the matter yesterday morning.

Mr Owens shocked the insurance industry last month when he revealed Hibernian's latest strategy on penalty points. The company insures about one out of every three drivers.

The move has yet to be followed by any of Hibernian's competitors, a number of whom attacked it as a publicity stunt.

In a statement, Hibernian said Mr Owens's resignation was effective from the start of August. He is due to commence a holiday this weekend.

Mr Jenkins said Mr Owens had played an "influential role" in the company's performance and thanked him for his "significant contribution". He said Hibernian wished Mr Owens well.

Mr Owens will receive a financial package from Hibernian upon his departure, but details on this were not available yesterday.

Aged 44, Mr Owens joined the company in 1994, taking on the managing director role at the end of 1999 as Hibernian was being taken over by Commercial General Union. Hibernian was subsequently merged with Norwich Union's Irish operations following the merger of the two companies' parents.

Mr Owens will be replaced by Hibernian's director of underwriting and distribution, Mr Dick O'Driscoll.

Mr O'Driscoll has been with Hibernian for almost 20 years and has worked in all areas of the company.

He is also chairman of the Road Safety Committee at the National Safety Council and has served as a director of the Insurance Ombudsman scheme.