The chief executive of AMP, Paul Batchelor, has been forced to resign after a sharp fall in the Australian insurer and fund manager's shares.

The market would like some new blood in there, someone with a new attitude towards investors and investment opportunities

Steve Gliddon Merrill Lynch Investment Managers

His departure would be "in the best interests for AMP," the company said.

Concerns about the financial position of AMP's UK life insurance unit Pearl have sent the stock lower, wiping 2.2bn Australian dollars (£770m; $1.2bn) off its value in two days.

In July, AMP injected £331m to shore up Pearl's reserves and a further £169m is to be set aside to back Pearl by the end of this year.

On Monday, AMP's stock fell 3.6% to close at A$11.41 and the stock continued to slide on Tuesday.

Mass departures

Batchelor leaves just three weeks after chief financial officer Marc de Cure's departure.

In fact, it seems the company's senior management is in for a total overhaul.

Once a new chief executive has been found the company's chairman, Stan Wallis, will give it six months, then he will be on his way too.

New chief

AMP's chief operating officer, Andrew Mohl, has been appointed acting chief executive.

But he is unlikely to hang onto the position permanently.

"The market would like some new blood in there, someone with a new attitude towards investors and investment opportunities," said Merrill Lynch Investment Managers' Steve Gliddon.

One possible candidate would be Suncorp Metway's chief executive, Steve Jones, who resigned from his job on Monday.

The market value of AMP has slipped 42% since March.