Naz Farrow will be the next chief executive officer of Colonial Group International.

She has been appointed designate CEO, effective from Thursday, and will become CEO in mid-2018 when Alan Peacock retires.

Ms Farrow is currently chief operating officer, health, at the Bermudian-based insurance, pensions, health and personal investment group.

Grant Gibbons, Colonial Group chairman, said: “Naz Farrow joined Colonial in 1997 and has managed the group health portfolio since 1998.

“Under her leadership, the health business has grown significantly and attained new levels of client service and efficiency. She has been a driving force in the success of our health business, and during her time as COO, Colonial Medical has consistently outperformed strategic targets.”

He added: “We are confident that Naz possesses the expertise and commitment to meet the challenges of the CEO role and believe her experience with our strategy and culture will allow her to manage the talent needed to build on our success.

“During the coming months, Alan and Naz will work closely to maintain strategic priorities and ensure a smooth transition. The outlook for CGI continues to be bright, and I look forward to supporting Naz as she takes on her new responsibilities.”

Mr Peacock, who is also president of Colonial Group, will take on a supporting and advisory role for “at least another year” after he retires next year.

Mr Gibbons said: “For more than 40 years, Alan Peacock has provided strong and consistent leadership to the Colonial Group.

“From the time he joined the company in 1975, we have seen Colonial grow from a small domestic motor insurer to one of the region’s largest insurance and financial services providers. Alan has set the highest standards and values for the Colonial Group.

“He has contributed to the overall success of Colonial, enhanced policyholder value and developed industry strength in the region.

“Under Alan’s leadership CGI’s capital base has grown significantly to provide the financial strength required by our clients and policyholders.

“Alan has embedded a strong strategic framework within the organisation and introduced a culture of risk and compliance management to meet today’s enhanced regulatory requirements. His management has placed Colonial Group in a strong position to face future challenges.”