Bermuda-based Tower Group is one of the largest property/casualty insurers in the US, but the past few years have not been kind to the carrier. Company stock fell 82% last year, and AM Best downgraded its financial strength from an A- rating to a B++ in October.
Tower Group has given no indication its fortunes are set to improve and in the wake of the difficulties, President and CEO Michael H. Lee announced he would leave the company Friday.
Lee’s resignation is effective immediately. According to a statement by the Tower Group, he will move on to pursue personal and other career opportunities.
Lee will be succeeded by Jan R. Van Gorder as chairman of the board. Van Gorder is the lead independent director of Tower Group’s board as well as a member of its audit committee compensation committee. Previously, Van Gorder worked as CEO of Erie Insurance Group.
Meanwhile, former board member William W. Fox, Jr. is expected to assume Lee’s president and CEO duties. The official announcement is pending Fox’s employment terms.
Early last month, Tower Group announced it would be bought by another Bermuda-based company, reinsurer ACP Re Ltd., for $172mn. ACP Re is a privately owned company. The deal is expected to close this summer.
