Nigel Wilson has been promoted to group chief executive of Legal and General, replacing Tim Breedon.

Dr Wilson has worked at L&G since September 2009 as group chief financial officer.

Mr Breedon has worked as chief executive since January 2006 and is also a director of the Association of British Insurers. He will formally step down on 30 June but will remain an L&G employee until 31 December.

In his new role, Dr Wilson will be paid £750,000 and receive a bonus potential of 125 per cent of his base salary.

Wadham Downing, currently group financial controller, will act as interim group chief financial officer until a successor for Dr Wilson is found.

Dr Wilson said: “I am honoured by the board’s confidence in me and excited by the challenges ahead as I take up the reins from Tim. Tim’s stewardship has left the group in a great position to take advantage of the opportunities ahead of us.

“Together, we will ensure a seamless transition to enable the group to capitalise on its strong position.”

Mr Breedon said: “It has been a great privilege to lead L&G for the last six and a half years. After 25 years service and with the company in excellent shape, I am pleased to hand over to Nigel a strong platform on which to take L&G forward.

“We have worked together as CEO and CFO over the last few years and I look forward to working with him as he transitions into his new role.”