A key lieutenant is expected to replace John Neal as chief executive of QBE when the latter steps down at the end of the year.

Pat Regan, head of the group’s operations in Oceania, is expected to take the reins from Neil by Jan 1, 2018.

Neal has led QBE for five years now.

Marty Becker, the company chairman, said succession talks have been continuing for the past two years.

Becker, in a statement, acknowledged Neal’s contribution to the company and said that he had led the business at a time of significant transformation and challenges in the global insurance industry.

Becker added that Neal has been closely working with the board to ensure a smooth transition for his succession.