UK insurer Prudential has finally ousted chief executive Jonathan Bloomer after poaching its former Asia star Mark Tucker back from mortgage giant HBOS, in a move applauded by investors.
Britain's second-largest life insurer had been under pressure to remove Bloomer since October, when a controversial £1.1 billion rights issue to fund expansion in Britain triggered investor calls for his head. "A lot of the pressure at that time has died down but it would be wrong to say it had entirely gone," chairman David Clementi said.
"Looking to the next period of the company's growth we think that Mark is the best person to take the business forward." Tucker, who joined British bank HBOS as finance director designate last April, will be replaced at Britain's largest mortgage lender by HBOS insurance and investment head Phil Hodkinson.
Tucker was a 17-year veteran of Prudential and had transformed its Asian business into its crowning asset when he suddenly left in 2003, citing the need to find a new challenge.
Investors and analysts said he had been frustrated at being unable to take over at the top and they welcomed his return.
"He is a proven entity, the architect of what is the growth strategy for Pru," said Fox-Pitt, Kelton analyst Johnny Vo.
Prudential and HBOS both stressed that their respective board changes would not alter company strategy but while investors believed HBOS they were more sceptical of the insurer.
"I don't think this is a case of Tucker being presented with the company's agenda. They will be asking him for his vision," said one shareholder, who declined to be named.
Prudential's rights issue to fund UK expansion had surprised investors because the firm had previously emphasised its US and Asian businesses and came two months after Bloomer abandoned the sale of Prudential's 79 per cent holding in online bank Egg, saying the group did not need the cash.
One investor said he expected Tucker to sell Prudential's stake in Egg and hand some of the proceeds back to investors.
Egg's stock was up 7.7 per cent by mid-afternoon on hopes Tucker's arrival would hasten a sale. - (Reuters)
