Why is the IAG (ASX:IAG) share price heading south today?

The company is making some changes.

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The Insurance Australia Group Ltd (ASX: IAG) share price is moving in circles on Tuesday. This comes as the insurance giant revealed a reshuffle in the senior management team.

At the time of writing, IAG shares are down 0.12% to $4.225 apiece. It's worth noting that in the past month, its shares have fallen by more than 6%.

A disappointed female investor sits in front of her laptop and puts her hand to her forehead and closes her eyes in disappointment over share price falls

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IAG finds CRO replacement

In a statement to the ASX, IAG advised it has appointed Peter Taylor as the new group chief risk officer (CRO).

Mr Taylor brings an extensive wealth of knowledge into the role, having held various titles with large organisations. 

His previous experience includes 11 years in risk-focused roles at Commonwealth Bank of Australia (ASX: CBA). Mostly comprising under the banner of EGM and chief risk officer through various departments.

Currently, Mr Taylor is serving as general manager of enterprise risk at Westpac Banking Corp (ASX: WBC). He is responsible for group-wide aspects of risk management, assurance and governance.

IAG managing director and CEO, Nick Hawkins commented:

Peter has more than 30 years of corporate experience including several enterprise risk roles with large financial services companies, with 10 years working with regulators, Boards and management. The combination of his skills with his passion for risk means he is extremely well equipped to take on this hugely important role for IAG.

Mr Taylor will join IAG in the middle of 2022, provided his appointment secures the necessary regulatory approvals. In the interim, Tim Plant who is chief insurance and strategy officer will take over as acting group chief risk officer.

The inclusion comes as IAG's former chief risk officer, David Watts handed his resignation from IAG in September. Mr Watts is due to formally leave IAG on 11 February 2022.

In addition, group executive strategic projects, Craig Olsen will depart the company on 28 February 2022.

IAG share price snapshot

Over the last 12 months, the IAG share price has lost around 12%, with year-to-date down 10%. The company's shares have lost 50% of its wealth since July 2019, particularly when COVID-19 hit.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 9% from this time last year and is up 10% year-to-date. The ASX 200 also reached a record high of 7,632 points in mid-August.

Based on today's price, IAG presides a market capitalisation of roughly $10.43 billion, with approximately 2.47 billion shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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