There had been a difference over the insurer's direction, it said, and it was in the "mutual interests" of both Southern Cross and Mr Bowie that he stepped aside.
The resignation was immediate and Mr Bowie has left Southern Cross.
The Southern Cross focus was to assure the public that the board has stepped into the driving seat; a sub-committee headed by audit committee chairman Bryan Kensington has taken responsibility for resolving the operational issues.
Under the current circumstances that is the correct step for the board to take.
Directors are also seeking an independent financial review to re-confirm the strength of Southern Cross' financial position.
But Mr Bowie's departure does not lessen the need for the board to take a closer look at its own performance - once the current operational problems are resolved.
The debacle inevitably raises questions about whether the operational performance of Mr Bowie and his management team has been adequately monitored at board level.
The board lacks enough members with the requisite skills to advise, monitor and challenge a strong chief executive who, it should be pointed out, drives a vastly different beast to the more simple insurer that Mr Bowie himself inherited seven years ago.
Mr Kensington is fortunate he can call on the skills of Mr Bowie's predecessor, Peter Smith, as he tries to restore confidence.
But once the immediate issues are resolved another independent audit should be ordered - this time of the board's own governance performance. It is the least the members deserve.
nzherald.co.nz/southerncross
