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March 29, 2016 at 08:50 AM
(Bloomberg) — Medibank Private Ltd. named former National Australia Bank Ltd. Chief Financial Officer Craig Drummond as the health insurer’s next chief executive officer.
Drummond, 55, will take over on July 4, Medibank said in a statement to the Australian stock exchange Tuesday. Chief Operating Officer David Koczkar will serve as acting CEO from April 1 when the incumbent, George Savvides, retires, it said.
See also: Price of new Medibank shares falls
Drummond, who left National Australia on March 15 after spending just over two years as CFO, is taking the helm as the nation’s largest health insurer grapples with slowing premium growth and regulatory uncertainty. In an investor presentation last month, Medibank highlighted moderation in premium growth and a drop in volumes, while the government is undertaking a review to improve the effectiveness of the health insurance sector.
Drummond “brings with him deep experience in regulated service industries requiring a strong customer focus,” Medibank Chairman Elizabeth Alexander said in the statement.
He helped oversee the sale of almost all of National Australia’s underperforming businesses, including its U.K. unit. He was also behind Australia’s largest ever rights offering and along with National Australia CEO Andrew Thorburn refocused the lender toward Australia and New Zealand.
Australia provides its citizens with free or subsidized health care at clinics and hospitals through government program Medicare. It also encourages people through tax benefits to take out private health insurance through companies like Medibank.
