David Cash Steps Down As Endurance CEO
[Updated] Bermudian David Cash [pictured] has stepped down as the CEO of Endurance Specialty Holdings and has been replaced by John R. Charman, the company confirmed today [May 28].
Mr Cash stepped down as both the Company’s CEO and as a member of the Board, and Mr Charman has been selected as the Company’s Chairman and CEO effective immediately. William H. Bolinder, the current Chairman of the Board, has become the Company’s Lead Director.
Prior to his joining Endurance, Mr. Charman, together with members of his family, became one of its largest shareholders with the purchase of $30 million of the Company’s ordinary shares and indicated their intent to reinvest the dividends received on their investment.
Mr. Charman, 60, has four decades of global experience in the insurance industry, has been in a senior underwriting position since 1975 and has been in a CEO role since 1981. Most recently, he founded and served for 11 years as the CEO and President of Axis Capital Holdings Limited.
William H. Bolinder, Lead Director, said: “John Charman brings to Endurance outstanding leadership qualities, global insurance experience and the demonstrated ability to attain strong and consistent operating performance. John has a blue chip track record of delivering bottom-line results, improving underwriting ratios, managing risk and allocating capital efficiently. We believe the opportunity to benefit from his expertise is extraordinary and look forward to him helping Endurance build on its success to date while enhancing our focus on shareholder value creation. His investment of personal capital speaks volumes about his confidence in and commitment to our future opportunities.”
Mr. Bolinder continued. “On behalf of the entire Board, I would like to thank David for his 11 years of service to Endurance, the last three as Chief Executive Officer. The Board is grateful to David for his valuable leadership and dedication to Endurance and the work he has done to position the Company well for the future. We wish him all the best with the next stage of his career.”
Mr. Charman said: “Endurance is a great company with great people and significant future potential. The Company’s high standing is a testament to the efforts and hard work of its employees. In support of my strong belief and commitment to Endurance’s future and to fully align myself with the Company’s shareholders, I am investing a significant amount of my own capital in Endurance as well as foregoing any conventional compensation over the next five years in exchange for a single grant of restricted shares and options. I am really looking forward to working with and closely supporting Endurance’s senior management team, employees and directors as well as our valued customers and brokers. My goal is to fully realize the Company’s potential as a leading global specialty insurance and reinsurance company.”
As an inducement to his employment with Endurance, Mr. Charman will receive a stock option to purchase 800,000 ordinary shares at an exercise price equal to the opening price of Endurance’s ordinary shares on May 28, 2013, and a grant of 708,890 restricted shares. The awards will vest over the next four years, subject to Mr. Charman’s continued employment, or in the event of certain terminations of employment and other events. Mr. Charman will receive a minimal base salary and no incentive compensation over the next five years.
Mr. Charman’s appointment is subject to the approval of the Bermuda Department of Immigration.
Update May 29, 8.20am: A.M. Best Co. said that the financial strength ratings, issuer credit ratings and debt ratings of Endurance and its affiliates are “unaffected” by Mr Cash stepping down.
“A.M. Best expects that Mr. Charman will be an agent of change at Endurance, and A.M. Best will continue to monitor future developments and assess any rating implications as they are implemented,” the ratings agency said.
Good luck to all the staff at Endurance & Mr. Charman. Hope the outcome is not the same as it was at Axis.
And ACE before Axis
Cash says nothing and no indication of where he’s going? Oh ok. I get it……
????????????CEO’s don’t “step down”????????????
David,
I would like to thank you for making Endurance what is it today. It is evident you have done well. You will definitely be missed around here, especially at our social events! Continue to be the life of the party.
Wishing you the best,
Endurance Employee
Good luck Endurance Employee, trading David Cash for John Charman will do nothing for staff morale!!
Endurance fell apart after the Founder Chairman Ken LeStrange retired
Ken LeStrange was a special guy, one of my favorite Bermudian CEOs along with Pat Thiele. I have respect for both David Cash and John Charman, but suspect that Charman may not be the right gut culturally for Endurance.
I am willing to be convinced otherwise. A lot of people read me on insurance in the States, John, so I am open to being invited to talk with you, which I would publish. Let me know.
Sincerely,
David
If by fell apart you mean doubled the share price, increased book value and hired several new underwriting teams, then yes Endurance fell apart when Ken LeStrange left.
Wishing John success at the helm.
David, may your next challenge be rewarding.
………just another example of cash walking out the door!
funny
Well, I am a former Endurance Services employee from the US and I can tell you that Endurance was one of the worst companies I worked for. Low pay, long hours, no recognition for hard work, impossibility to get the “meet expectations” at yearly review regardless how hard you work, harrassing managers to name just a few reasons. At Endurance everybody knows everyone at managerial level and they hold this chain you can’t break. No matter who was a CEO, they all did not have a slightest idea what happaned down below at regular employee level.