National Financial Partners, which provides insurance and wealth management services, has appointed a new chief executive in the shape of Douglas Hammond.

Hammond, who has been the firm’s president and chief operating officer until now, replaces Jessica Bibliowicz.

Hammond has served as COO since 2008, and was named president in 2012. He joined the firm in 1999.

Bibliowicz announced her intention to step down as CEO in April 2012, having served in the role since April 1999. She has also been chairman since June 2003.

The New York-listed firm is undergoing an ownership change, as the Chicago, IL-based private equity firm Madison Dearborn Partners is taking it private.

Madison Dearborn is buying NFP through a controlled affiliated business, subject to shareholder approval and other customary closing conditions.

Bibliowicz will stay on the board as non-executive chairman until the close of the transaction with Madison Dearborn.

Under the terms of the deal with Madison Dearborn, shareholders of NFP will receive $25.35 in cash for each share of common stock they own, giving the firm an equity value of around $1.3 billion. This represented a 26 per cent premium over its closing share price on the day before news of the deal emerged.

"We look forward to working closely with the company's leadership team as it continues to build a strong diversified business. We fully support NFP's focus on providing high-quality and value-added services to all of its clients, including corporations, through a more unified brand across its business segments," said Vahe Dombalagian, a managing director at Madison Dearborn.