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Prudential boss Tidjane Thiam to lead Credit Suisse | Prudential boss Tidjane Thiam to lead Credit Suisse |
(35 minutes later) | |
Prudential boss Tidjane Thiam is to leave the insurance giant to take the top job at Credit Suisse later this year. | Prudential boss Tidjane Thiam is to leave the insurance giant to take the top job at Credit Suisse later this year. |
It comes as Prudential reported a 60% rise in annual pre-tax profit of £2.6bn, against £1.6bn a year ago. | It comes as Prudential reported a 60% rise in annual pre-tax profit of £2.6bn, against £1.6bn a year ago. |
Mr Thiam has headed Prudential for six years and replaces Credit Suisse chief executive Brady Dougan, who has led the firm since 2007. | Mr Thiam has headed Prudential for six years and replaces Credit Suisse chief executive Brady Dougan, who has led the firm since 2007. |
Mr Dougan will step down at the end of June. | Mr Dougan will step down at the end of June. |
Failed acquisition | Failed acquisition |
Prudential confirmed Mr Thiam was to stand down, adding "we have identified a successor and expect to be able to announce a new CEO once the regulatory approval process has been completed". | Prudential confirmed Mr Thiam was to stand down, adding "we have identified a successor and expect to be able to announce a new CEO once the regulatory approval process has been completed". |
Prudential's share price was 2.3% lower at 1625p after news of Mr Thiam's departure was confirmed. Credit Suisse meanwhile saw its shares rise 7% in Frankfurt to €23.17. | |
Mr Thiam's decision to quit will be seen as a loss for Prudential, which has seen its share price flourish during his time at the helm. | Mr Thiam's decision to quit will be seen as a loss for Prudential, which has seen its share price flourish during his time at the helm. |
In the early days of Mr Thiam's tenure, there was widespread speculation over whether he would remain boss after Prudential failed to buy Asian business AIA, costing the insurer £377m. | In the early days of Mr Thiam's tenure, there was widespread speculation over whether he would remain boss after Prudential failed to buy Asian business AIA, costing the insurer £377m. |
Mr Thiam publicly apologised for the high-profile failure, but since then has been credited for driving the group's rapid expansion. | Mr Thiam publicly apologised for the high-profile failure, but since then has been credited for driving the group's rapid expansion. |
Prudential said on Tuesday it was increasing its full year dividend by 10% to 36.93p, reflecting the group's strong financial performance in the year. | Prudential said on Tuesday it was increasing its full year dividend by 10% to 36.93p, reflecting the group's strong financial performance in the year. |
Analysis: Business editor, Kamal Ahmed | Analysis: Business editor, Kamal Ahmed |
Tidjane Thiam was that rare thing among chief executives of large, global corporates - someone who oversaw a shambolic attempt at executing a multi-billion pound deal, and survived. | Tidjane Thiam was that rare thing among chief executives of large, global corporates - someone who oversaw a shambolic attempt at executing a multi-billion pound deal, and survived. |
And - if you look at Prudential's performance since then - many now argue that it was quite right that he did so. | And - if you look at Prudential's performance since then - many now argue that it was quite right that he did so. |
The deal in question was the £21bn bid to take over AIA, the Asian insurance giant. | The deal in question was the £21bn bid to take over AIA, the Asian insurance giant. |
Such was Mr Thiam's lack of experience in the world of acquisitions (he had only taken over as CEO a year earlier) the whole process was dogged by mistakes. | Such was Mr Thiam's lack of experience in the world of acquisitions (he had only taken over as CEO a year earlier) the whole process was dogged by mistakes. |
The Financial Services Authority fined Prudential £30m for failing to keep the regulator properly informed. | The Financial Services Authority fined Prudential £30m for failing to keep the regulator properly informed. |
What Mr Thiam's departure proves, five years later, is that if investors have patience, a chief executive with the right strategy (strong expansion in Asia) can survive a tricky start. | What Mr Thiam's departure proves, five years later, is that if investors have patience, a chief executive with the right strategy (strong expansion in Asia) can survive a tricky start. |
Since 2010, Prudential's share price has risen by 211%. | Since 2010, Prudential's share price has risen by 211%. |
But the group also warned it faced "a considerable period of change in 2015," which had already seen global economic volatility, political upheaval and unexpected shifts in central bank positioning". | But the group also warned it faced "a considerable period of change in 2015," which had already seen global economic volatility, political upheaval and unexpected shifts in central bank positioning". |
Prudential added: "The persistently low level of interest rates is a challenge for insurance companies." | Prudential added: "The persistently low level of interest rates is a challenge for insurance companies." |
The insurer said operating pre-tax profit for the year was 14% higher to £3.2bn based on the performance of its longer term investments. | The insurer said operating pre-tax profit for the year was 14% higher to £3.2bn based on the performance of its longer term investments. |
Credit Suisse chairman Urs Rohner said Mr Thiam was "a strong and distinguished leader with an impressive track record in the global financial services industry". | Credit Suisse chairman Urs Rohner said Mr Thiam was "a strong and distinguished leader with an impressive track record in the global financial services industry". |
He added: "His extensive international experience, including in wealth and asset management and in the successful development of new markets, provides a firm foundation for leading Credit Suisse." | He added: "His extensive international experience, including in wealth and asset management and in the successful development of new markets, provides a firm foundation for leading Credit Suisse." |
Mr Thiam said he would presenting the Pru's first quarter results in May and attending his final AGM as chief executive shortly afterwards. | Mr Thiam said he would presenting the Pru's first quarter results in May and attending his final AGM as chief executive shortly afterwards. |