Freedom pair quit in wake of royal commission
FREEDOM Insurance says both its chief executive and chairman will leave the life insurer as it deals with the fallout from a damaging appearance before the financial services royal commission.
Freedom has also upgraded the expected hit from a dramatic restructure of its business model and will consider the sale of its SpectrumWealth Advisers business.
Chairman David Hancock will step down after the company’s annual meeting on Thursday while chief executive Craig Orton has advised the board he intends to leave for personal reasons, Freedom said yesterday.
Mr Orton will finish before the end of the calendar year, the company said.
He will be replaced by former TAL executive Sean Williamson, who is currently consulting with Freedom.
Mr Orton’s departure follows his uncomfortable appearance at the banking royal commission in September, amid evidence the company sold policies to people who did not need them and went to extraordinary lengths to ensure customers retained their insurance. Non-executive director Katrina Glendinning has also resigned effective immediately, Freedom said yesterday.
Former Australian Superannuation Funds of Australia chief executive Pauline Vamos had been appointed to the board.
Ms Vamos will assume the role of chairman if she is reelected by the company’s shareholders at this week’s meeting. In September, Freedom said it would launch a “review of strategic options” after the Australian Securities and Investments Commission told insurance companies to shut down outbound sales centres.
Yesterday the company said it expected to absorb about $5 million in restructuring costs, up from an earlier forecast of $4.8 million.