Tidjane Thiam is set to step down as chief executive of Prudential after five years in a move that leaves Britain’s largest listed insurer scrambling to fill its top job as it presses ahead with an expansion drive in Asia.
Mr Thiam, the first black man to run a FTSE 100 company, has been poached by Credit Suisse to replace Brady Dougan as chief executive at the Swiss banking giant.
The Pru is expected to confirm Mr Thiam’s departure today alongside its annual results, which are likely to show further signs of its inroads into Asian markets.
Among the frontrunners tipped to take over from Mr Thiam at the insurer is Mike Wells, the head of Jackson National Life Insurance, Prudential’s American operation.
The departure of Mr Thiam, a former McKinsey consultant and Ivory Coast government minister, marks a significant setback for the Pru. It comes as speculation mounts that its board is increasingly open-minded about considering a break-up of the business that could involve the sale of its British unit and the company turning itself into an Asian insurer.
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Mr Thiam, a former head of Europe for Aviva, was handed the top job in late 2009 by Mark Tucker, the executive who had pioneered the Pru’s ten-year expansion into the Asian markets. Within months he had put his reputation on the line by pursuing a $35.5billion takeover of AIA, the Asian insurer, a failed deal that prompted calls for Mr Thiam to go but ended up with the departure of Harvey McGrath, the company’s chairman.
Friends of Mr Thiam said last night that the lifelong Arsenal fan, who has made London his home for at least the past eight years, felt uncomfortable since the exit of Mr McGrath. The chairman had shielded his chief executive from some of the shareholder wrath that had headed his way at the time of the AIA failure. Mr Thiam remained “bitter” about the collapse of the takeover, which would have made the Pru into the No 1 player in one of the world’s most rapidly growing regions.
Prudential’s boss has also struggled with the culture of the London markets and the media scrutiny that his role in the AIA bid attracted, the friends added.
Mr Dougan has been in charge at Credit Suisse since before the financial crisis and is one of the longest-serving financial services executives in Europe. However, his tenure has come under increasing scrutiny in recent years, in particular as UBS, the bank’s domestic rival, appears to have made greater headway in rebuilding itself since the credit crunch left both banks nursing heavy losses on toxic securities.
Appointing Mr Thiam is not without risks for Credit Suisse. Although he is one of the most respected executives in financial services, the Pru’s top man lacks significant experience in banking at a time when regulators are making increasingly onerous demands.
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The Prudential refused to comment last night. Shares in the insurer closed 8p lower at £16.63½p.