Jim Armitage: Old Mutual's Paul Hanratty is better off out of the insurance game

It’s not easy when you miss out on the top job, and it’s certainly no fun sticking around taking orders from the new boy.

So there were few shocked gasps around Old Mutual’s HQ on the Thames this morning when chief operating officer Paul Hanratty resigned weeks before the outsider, Bruce Hemphill, takes over as CEO.

Hemphill beat Hanratty to the job thanks to his wider experience running banks, asset managers and life insurers.

Just as important was his varied experience running businesses around Africa.

Why? Because, according to most analysts, Hemphill is highly likely to break up the company between its emerging market — mostly African — operations and the western businesses.

The analysts are probably right. But my guess is he’ll want to get Old Mut well beyond the hump of next year’s European Solvency II regulations before even starting to consider such drastic action.

The rules, aimed at increasing insurers’ capital buffers, involve regulatory complexity that has many a European insurance boss waking at night in a cold sweat.

Welcome to our world, Mr Hemphill.

Insurance is a tough place to be these days.

Hanratty, who has put in more than 30 years service to Old Mut, is better off out of it, improving his golf swing.