AMP Names ANZ’s Alexis George as CEO; De Ferrari to Retire

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AMP Names ANZ’s Alexis George as CEO; De Ferrari to Retire

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Matthew Burgess and Nabila Ahmed
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(Bloomberg) -- AMP Ltd. has appointed Alexis George as chief executive officer to take over from Francesco De Ferrari, who will retire after less than two-and-a-half years at the helm of Australia’s oldest wealth manager.

George, the deputy CEO at Australia & New Zealand Banking Group Ltd., will join AMP in the third quarter, subject to regulatory approvals, according to a statement Thursday. AMP shares rose as much as 3.2% in early Sydney trading, set for the biggest gain in more than a month.

De Ferrari will leave after a tumultuous tenure that’s seen the firm rocked by scandals and the stock price plumb an all-time low since he took the helm in December 2018. In August last year, David Murray stood down as chairman and Boe Pahari was demoted from his position atop the firm’s investment management unit after a sexual harassment scandal sparked the second boardroom shakeup in just over two years.

“They wanted to bring in someone completely new, and they wanted to give him a chance to turn the business around, a completely fresh start,” said David Sokulsky, chief investment officer at Carrara Investment Management. “It just hasn’t worked.”

At ANZ Bank, George oversaw its wealth unit before becoming deputy CEO, including the sale of its life insurance and pensions businesses to Zurich Insurance Group and IOOF Holdings Ltd. She joins Macquarie Group Ltd. CEO Shemara Wikramanayake as the only other chief executive of a major Australian financial institution.

“We will all miss her experience, wise counsel and down-to-earth leadership style,” ANZ Bank CEO Shayne Elliott said in a statement. “However, as one of the most experienced wealth executives in the country, she is ideally placed to lead AMP through its next phase and we all wish her well on the challenge.”

Speculation on AMP’s future leadership began March 25 when the Australian Financial Review reported De Ferrari would resign that day, though the company said he remained in his post. The next day, AMP said discussions were taking place on his future.

The company started in 1849 as a mutual provident society owned by policyholders and listed on the stock exchange in 1998, when it ranked among Australia’s biggest firms. It now has a market capitalization of about A$4.4 billion ($3.3 billion)

De Ferrari enjoyed some success when he completed the revised sale of AMP’s life insurance unit after the initial deal, struck before his tenure, was blocked by New Zealand regulators. The proceeds of the deal were to kick-start his three-year turnaround strategy of the scandal plagued wealth management unit.

Revamp plans were put on hold last year when new chairman Debra Hazelton put the company up for sale and Ares Management Corp. offered A$6.4 billion to buy it. That deal fell through in February as Ares grew concerned over the deteriorating performance of the wealth management unit, instead offering to take a 60% stake in the prized private markets business. A deal failed to be agreed before the exclusivity expired, though talks are ongoing with Ares interested in 100% of the private markets business.

De Ferrari helmed Credit Suisse Group AG’s private banking unit in the Asia-Pacific region before his move to AMP in 2018.

(Updates with shares rising in second paragraph.)

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