July 05, 2018
Round-up of the weekly news and developments from the global (re)insurance market with stories from Lloyd’s, Dual, LSM and more.
Lloyd’s CEO Beale to leave next year
Lloyd’s CEO, Inga Beale, is to step down in 2019 after a five-year tenure at the helm of the Corporation.
Inga joined Lloyd’s at the beginning of 2014, becoming the market’s first ever female chief executive in its now 332-year history.
Lloyd’s applauded her commitment to transformation across the market since then, and within the Corporation, which it said had led to significant cultural change and the adoption of new technology that has accelerated the market’s modernisation and digitalisation.
Beale has also been a strong advocate of improving diversity and inclusion across the global (re)insurance sector, founding initiatives such as Inclusion@Lloyd’s in 2013, which is now celebrated annually via the Dive in festival.
Before being named Lloyd’s CEO, Beale was previously group chief executive of Canopius. Prior to that, she spent four years with Zurich Insurance Group as global chief underwriting officer. Beale has also held senior roles at Swiss reinsurer Converium and GE Insurance Solutions, having started her career at Prudential.
“Inga will leave Lloyd’s with a strengthened reputation as one of the most respected and trusted insurance brands in the world, with a strong and experienced leadership team focused on delivering Lloyd’s strategic priorities,” the Corporation said in a statement.
News of her departure comes just a year after Bruce Carnegie-Brown was appointed chairman, and months after Lloyd’s reported a pre-tax loss of £2bn for 2017 that was partly fuelled by heavy natural catastrophe losses in the US and Caribbean.
Beale said that the decision to leave had been a tough one, and that she would “miss the energy, innovative spirit and expertise that I come across every working day.”
“Leading Lloyd’s is an honour and I am proud to have played a part in ensuring that it remains relevant and fit for purpose for the future. The world trusts Lloyd’s to be there when it matters the most and I believe it is well placed for the next 330 years,” she said.
Meanwhile, Carnegie-Brown said: “In her five years at Lloyd’s, Inga has set in motion a series of changes aimed at modernising the market and making it more efficient and inclusive.
“Her boldness and persistence have generated the momentum required to bring about real change. I have very much enjoyed working with Inga, and I am grateful for the support she has given me in my first year as chairman.”
Lloyd’s said that Beale’s departure date was yet to be confirmed, and that a search for her successor was under way.
Doherty to join Dual amid leadership reshuffle
Former Pioneer CEO and founder Darren Doherty is to join Hyperion’s underwriting arm, Dual, as vice chairman and commercial director.
Doherty, who left Pioneer in February after seven years at the company, will also serve as chairman of Dual’s US operations. He will join the firm on 1 September.
Hyperion said that Doherty’s hire is subject to regulatory approval and discharge of his duties to Pioneer.
Doherty founded Pioneer in 2011 having spent the previous 12 years at its sister company BMS Group, most recently as managing director of direct and facultative business.
In addition to Doherty’s appointment, Dual also announced a number of leadership changes which it said “strongly positions them for further growth both in the UK and internationally.”
David Ibeson, CEO of Apollo and non-executive director of Dual, will replace Clem Booth as Dual chairman effective 1 October 2018.
Dual said that the move will enable Booth to focus on his role in Hyperion including becoming chairman of its remuneration committee from 1 July.
Meanwhile, Richard Clapham has been named as Dual’s group chief executive, also effective 1 October, a role which he will carry out in addition to his current responsibilities as group CUO and CEO of UK and Europe.
Hyperion CEO David Howden remarked: "Dual’s success has always been about the quality of its people and so it’s fantastic that Darren has chosen to join us, and that David has agreed to be Dual’s chairman. Their commitment and confidence in Dual is clear evidence of the strength of the business and its potential.
“Darren’s extensive experience and energy will bring additional drive to Dual’s expansion plans both in the UK and internationally. And I am confident that David’s insight and experience will be invaluable as he leads Dual through its next stage of growth. "
Howden added: "I've really enjoyed working with Richard over the last few years and there is no one better positioned to take on this global role.”
Ibeson said: "Over the last two years on the Dual board, I have seen the business go from strength to strength through key leadership team appointments and significant investment in the operating model. Darren and Richard’s impressive collective experience combined with that of the existing team greatly enhances Dual’s greatest asset: our ability to deliver fast, competitive and cost-effective distribution.”
Hive Aero expands with Talbot hire
Recently launched aviation hull and war MGA Hive Aero has appointed Will Gaunt as aviation war class underwriter.
Gaunt moves over to Hive Aero from Talbot, where he most recently served as class underwriter for its general aviation book. Prior to joining Talbot in 2009, he worked at XL Group.
In his new role, Gaunt will work alongside chief underwriting officer (CUO) Bruce Carman, who founded the new MGA platform in November 2017. It was granted Lloyd’s coverholder status the following month.
Prior to forming Hive Aero, Carman was partner and underwriter at Cathedral, having joined from Atrium in October 2014, where spent 27 years leading the carrier’s hull and war book.
The MGA, which specialises in aviation hull war insurance, began underwriting in April with an initial stamp capacity of $50mn per aircraft risk for the account of major Lloyd’s carriers Beazley, Arch, Chaucer and Dale.
Carman said: “I am delighted to welcome Will to Hive Aero and very much look forward to working closely with him. His knowledge and relationships within the aviation sector will be a huge asset to us.”
Gaunt added: “I am excited to join Hive Aero and look forward to helping grow the business. The opportunity to assist in developing the highly analytical capacity offered by Hive Aero in this niche market is very appealing.”
Liberty rebrands reinsurance business as it launches Italian operation
Liberty Specialty Markets (LSM) has rebranded its reinsurance division as Liberty Mutual Re, as well as launching an Italian reinsurance operation.
Until now, the reinsurance business was simply known as the reinsurance unit under the brand LSM, but the company said that rebranding positions it as the sole treaty reinsurance business within Liberty Mutual Group.
The reinsurance division employs 180 people in 14 locations.
In addition, the carrier has appointed Massimiliano Fantini to lead its newly-launched Italian reinsurance operation, which will be based out of Rome and Milan and will begin trading immediately.
Fantini joins from Guy Carpenter where he served as the reinsurance broker’s Italian country manager for the past five years.
Prior to that, he spent 15 years at Swiss Re Italy, rising to the position of CFO before he left.
Liberty’s Italian reinsurance team will write property, casualty and specialty business with Fantini assuming the position of Liberty Mutual Re’s general manager reinsurance for Italy.
Meanwhile, the carrier also announced that it has begun to write US marine reinsurance business for the first time, appointing Scott Johnson to lead the new marine account as assumed reinsurance underwriting manager of ocean marine.
Johnson moves over from Munich Re, where most recently he held the position of vice president of marine and offshore energy having joined the reinsurer in 2006.
In his new role, Johnson will report to James D’Onofrio, Liberty Mutual Re’s general manager for the US. He will be based in the Stamford office.
Commenting on the rebranding, Dieter Winkel, president of Liberty Mutual Re, said: “By rebranding as Liberty Mutual Re, the sole treaty reinsurance business within Liberty Mutual Group, we can be very clear about the benefits that our financial strength offers while highlighting the breadth and depth of our offering,
“Our rebranding signals our intention to leverage the Liberty brand and emphasize the sheer strength of the balance sheet on which the Liberty Mutual Group is founded. This is just the start of the process.”
He added: “The launch of our Italian business is a key step in our plans to grow Liberty Mutual Re’s business. We’re extending our global footprint while building on the close relationships we’ve already developed with clients and brokers in Italy.”
Neon launches Nordic marine coverholder
Lloyd’s carrier Neon has launched Orca Insurance Agency, a Lloyd’s approved coverholder focusing on Nordic marine risks.
The Copenhagen-headquartered MGA will be led by CEO Lars Hendriksen and will underwrite on behalf of Neon Syndicate 2468.
Focusing on the Nordic markets, Orca will offer comprehensive marine risk solutions including offering insurance products, as well as risk consultancy and engineering services for the shipping industry.
Neon said that risk engineering capability and technical expertise will sit at the core of Orca’s offering and it will offer clients dedicated in-house claims handling.
Hendriksen has held a number of senior management roles within the marine sector including at Codan Marine RSA Scandinavia and the Survey Association.
In addition, Henrik Pilegaard has been appointed chief underwriting officer (CUO) of Orca.
Both Hendriksen and Pilegaard join Orca from Swedish-headquartered underwriting agency Lavaretus Underwriting AB, which is a subsidiary of JLT that was established in 2010.
Neon group CEO, Martin Reith commented: “Copenhagen is an excellent base to build out our marine capabilities and establishing a significant presence here is core to our growth aspirations.
“Orca will not be just another marine business, however. The team shares Neon’s philosophy and commitment to a technical approach, based on considerable experience and expertise. The combination of this and their relationships in the local market - and ability to offer both underwriting and risk consultancy - represents a unique client proposition.”
“This will be further complemented by Neon’s entrepreneurial and innovative approach and, over the coming years, we anticipate adding new classes and underwriting teams to the Orca platform, as Neon continues its international growth,” he concluded.
Lockton appoints Ridge as global head of marine & energy reinsurance
Lockton has named Jerry Ridge as its new global head of marine and energy reinsurance.
Ridge boasts close to four decades of experience within the reinsurance industry. He joins Lockton from Willis Re where he held the role of chairman of global specialty. Before this he served as co-CEO of Willis Re Speciality and managing director of Willis Re Global Marine and Energy.
In his new role, Ridge will head up Lockton’s rapidly expanding international marine and energy reinsurance business group.
Ridge will be accompanied by Jennifer Jones who also joins from Willis Re where she was executive director.
The company has revealed that additional members of its marine and energy reinsurance team will be announced shortly.
Neil Nimmo, CEO of Lockton International comments: “We’re making great strides in building a world-class marine and energy reinsurance team, and we’re delighted to welcome Jerry on board to lead that business unit through its next stage of growth.
“Jerry brings close to four decades worth of experience within the marine and energy reinsurance market which, combined with Lockton’s dynamic and innovative approach, will allow us to offer our clients a truly differentiated broking service.”
Commenting on his appointment Ridge said: “I’m delighted to be joining Lockton at such an important juncture in the development of its reinsurance business, and look forward to building out the business’ proposition in the marine and energy sector.
“By placing an unrivalled level of emphasis on client service, Lockton is bringing a fresh approach to the marine and energy reinsurance market. We’re in the perfect position to challenge the more established players with a culture of ‘broking done differently’ that places clients and their needs front and centre.”
AFL buys stake in UK employer protection MGA
Independent Lloyd’s broker AFL has acquired a controlling stake in UK specialist employer protection MGA, Concordia.
Based in London, Concordia has been supporting UK employers with managing risks and exposure resulting from workplace disputes since its launch in 2015.
The business distributes its insurance products through brokers as well as direct to employers, with underwriting capacity provided by the London market.
The terms of the transaction were not disclosed.
Once the acquisition is complete, AFL said that Concordia founder and director Philippe Gouraud will remain on the board as a non-executive director and continue to provide strategic oversight to the business, while client management responsibilities will continue to be handled by Nim Kumar.
Commenting on the deal, AFL chairman Toby Esser remarked: “We are excited to be partnering with Concordia’s talented, entrepreneurial and expert team.
“The combination with AFL presents the perfect platform for our expanding businesses to continue to strategically grow and diversify into the MGA space. At the same time, Concordia will retain its independence as an MGA, and operate as a separate entity.”
Gouraud said: “This is a milestone in Concordia’s development – the team and I are delighted that AFL, a company that truly values innovation, recognises the quality of the products and services Concordia delivers to its clients.”
Darag taps Booth as CEO
European run-off specialist Darag has appointed Tom Booth as group CEO.
Booth most recently served as group CFO at R&Q in Bermuda. Over the last few years, Booth has worked on sourcing and executing North American based legacy transactions, building on his previous experience in the UK and Europe.
Booth joined R&Q nearly a decade ago from Numis Securities where he was corporate finance director, leading the corporate finance team for the non-life insurance sector.
Darag said that Stuart Davies, the former Sompo Canopius CEO who was named executive chairman last year, will continue in his role until the transition is complete and will become non-executive chairman thereafter. He will work with Booth to coordinate the planned significant expansion of Darag.
Commenting on the appointment, Davies said: “Darag is set on global growth, with several key transactions in core and new markets in recent months.
“Tom is the ideal candidate to lead this continued expansion. Darag has an unparalleled level of expertise and is able to provide capital efficient, tailored legacy solutions, no matter the size or complexity of the portfolio.”
Booth remarked: “Darag has an outstanding reputation as one of the market-leading providers of legacy solutions. Legacy is a fast-growing market, with excellent revenue potential and a track record of delivering market-beating returns. Darag’s expert team has deep knowledge and understanding of the global market, and I am honoured to be joining this exciting business as CEO.”