Resignation at Norwich Union

NORWICH Union is looking for a new general manager for its life assurance arm following the resignation of general manager and chief actuary, Mr John McCarthy.

Staff were informed of Mr McCarthy's immediate departure from Norwich Union last Friday.

Norwich Union chief executive, Mr Vincent Shendatt, who is assuming responsibility for the life assurance division until a successor is appointed, said Mr McCarthy's departure had been amicable".

"He and I agreed it was time for him to move on and he is now pursuing other interests," said Mr Sheridan.

Mr McCarthy, who is in his early fifties, was highly-regarded by many in the life assurance industry.

This was especially so after Norwich Union took a controversial decision in 1994 to cut the 12-13 per cent bonuses on the company's life assurance and pensions policies.

This decision was taken on the basis that this level of bonus could not be sustained-given the group's long-term liabilities.

This move was followed only some time later by the group's with-profits competitors, most of whom did not cut their bonuses by the same extent as the Norwich Union.

Norwich Union is expected to publish its 1995 new business figures later this month.

Industry sources believe that in common with results already released from Lifetime, Hibernian Life and Ark Life, Norwich Union will report a difficult 1995 on the life aide of its business.

However, buoyant pensions business may go some way to compensate.

Last year, Norwich Union reported a 13 per cent increase in new premium income in its life assurance business.

Within that life assurance business, annual premium income increased 2 per cent to £12.8 million - although it required a substantial increase in pensions business to compensate for a fall in life assurance business.