In a memo distributed to AMS Services and Vertafore employees today, Mr. Menzies said Mr. Shea had elected to move back to the East Coast where his family base is located. "Dave expects to head back to the East Coast around the end of June," he noted.

"The story is exactly as laid out in the memo," said Mr. Menzies in an interview with National Underwriter. "Often in these cases, there's another layer, but in this case it's 100 percent kosher."

Mr. Menzies conceded that in the short term, Mr. Shea's departure "will have a little disruption here and there. When you take out a talented executive who is working for the company it will certainly put a lot of pressure on us."

He emphasized, however, that his move into the AMS presidency "is not intended to be a transitional title. I do intend to play both roles. I've been with the company for about five years. I think Dave has done a fabulous job, but I've been intimately involved with strategic decisions. It's not as if I'm learning a new business."

Mr. Menzies said that in the long term, the move would enhance the company's "natural ability to streamline decision-making and move a little faster. Lines between product businesses will continue to blur. There will be more work initially, but if we need to add more talent, we're certainly prepared to do that."

He added that Mr. Shea may continue with the company in a consulting role. "It's certainly not an acrimonious or unfriendly situation."

"From a business perspective, I believe that we need to continue to strengthen our core products and related operational infrastructure," said Mr. Menzies in the memo. "We have worked hard to create a more effective organization over the past three to four years? although we still have more work to do in this regard."

In terms of how Mr. Shea's departure would affect products and services, Mr. Menzies told NU, "I don't believe there will be any impact on those we support on our products."

Mr. Shea could not immediately be reached for comment.