Nick Greiner has joined the board of PMI Mortgage Insurance as the company responds to increased scrutiny of corporate governance.
The former NSW premier, who is currently a director of QBE insurance, has been made an independent director and chairman designate of the mortgage lender.
He is expected to be made chairman within 12 months, succeeding Brad Shuster, a senior executive with PMI's parent company in the US.
Mr Greiner's appointment to the PMI board followed new requirements from the Australian Prudential Regulation Authority (APRA) about the composition of boards, PMI CEO Ian Graham said.
APRA released new standards in May 2006 for banks and general insurance companies in an effort to greater transparency and bring standards into line across the financial services industry.
There must now be greater independence within the boards and audit committees of banks and insurers, and companies need to have a formal policy on board renewal and procedures for assessing their own performance.
The demise of HIH and other big corporate collapses such as Enron in the US has brought corporate governance into the spotlight, an APRA spokesperson said.
After the HIH Royal Commission the regulator introduced new standards for supervising insurers that operate as part of a corporate group. They will be finalised later this year.
Nick Greiner has forged a multi-faceted corporate career since retiring from politics. In addition to his insurance directorships, he is chair of construction groups Bradken Limited, Bilfinger Berger Australia, United Utilities Australia and duty-free retailer Nuance Group, deputy chair of property investor Stockland Trust and private equity firm Champ and a director of McGuigan Simeon Wines.
He is married to Kathryn Greiner, who is also well known for her business alliances. She was a previous chair of the FPA.
