Former NIG boss Greenwood named Direct Line acting CEO as James steps down

Greenwood, currently chief commercial officer, joined the group in 2000 and has over 30 years’ experience in the insurance.

He became managing director of commercial and broker at RBSI, the then owner of NIG, in May 2009 with the job title evolving to managing director of NIG by 2011 when it updated its logo.

More recently he stepped up from being managing director of commercial at Direct Line when the CCO role was created last October.

Shock profit warning

James took up the post of CEO in May 2019 succeeding Paul Geddes and moving across from being chief financial officer. She had joined DLG in 2017.

On 11 January the company issued a shock profit warning that knocked nearly 25% off the value of the share price which dropped to 177.8p. At close of trading yesterday it remained at almost the same price – 179.55p per share.

In the latest update the insurer detailed that the board has started the process to find a new CEO.

Greenwood will join the board in the interim in his new role and Direct Line noted that James will “assist with the process of transition to ensure a smooth handover of responsibilities”.

External hire

Abid Hussain, analyst at investment bank Panmure Gordon, said he believed “the replacement will need to be an external hire, meaning difficult decisions need to be made in the absence of a leader or more likely delayed”.

Danuta Gray, chair of Direct Line Group, thanked James for her work over the years.

“During her time as CEO, Penny has overseen significant strategic progress, transforming the technology and capability across the business, accelerating the digitalisation of customer journeys and helping to set the company up for the future,” Gray said.

“She also deserves great credit for the way she led the business through the pandemic, in a very challenging market, ensuring that we continued to serve our customers.”

Track record

Gray also welcomed Greenwood to the acting CEO job.

She stated: “Jon has a successful track record in leading our commercial business and as chief commercial officer has a deep understanding of the group.

“The board and I will work closely with Jon as he focuses on our priorities of driving our performance and restoring balance sheet resilience, following the significant headwinds the business faced in recent months.”

Proud

James commented: “It has been a privilege to lead Direct Line Group for nearly four years and to work with such an amazing group of colleagues. While the business was impacted by significant headwinds at the end of 2022, the Group has continued to make strategic progress.

“I am proud of what the business has delivered for customers, where our technology transformation has seen improved digital capability in our core business areas, setting the group up for the future.

“I wish Jon and the team every success and have no doubt they will build on the underlying strengths of the business.”

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