WellPoint said late Tuesday that Angela Braly stepped down from her role as the insurer's president and chief executive, effective immediately.
The announcement comes after recent criticism from shareholders who said the Indianapolis-based health giant had been underperforming.
John Cannon, the company's executive vice president and general counsel, will serve as interim president and CEO. Cannon says he is not seeking the role permanently.
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In a news release, the carrier said it's actively searching for Braly's replacement and will consider both internal and external candidates.
Additionally, Jackie Ward, WellPoint's lead director, was named non-executive chair of the board. Ward said the company still stands behind Braly's contributions.
"Our board continues to believe that time will prove the wisdom of potentially transformative actions taken under Angela's leadership, from the sale of the pharmacy benefit management business to Express Scripts to the recent and proposed acquisitions of CareMore, 1-800-CONTACTS and Amerigroup," Ward said in a statement. "But now is the right time for a leadership change."
Last month, WellPoint announced its $4.9 billion acquisition of AmeriGroup, a strategized move to increase the company's Medicaid footprint. Experts have predicted more health insurer consolidation as health reform squeezes the core business of those companies. The deal is set to close in early 2013.
Braly had been CEO since 2007, and during her tenure the insurer's stock has been continually dropping. WellPoint's stock has dropped 13 percent this year, while competitor UnitedHealth has risen 7 percent.
Braly's resignation came as apparent good news for investors: Shares of WellPoint jumped Wednesday morning.
This story has been updated.
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