ldoherty

Participants included the likes of Ageas, Sampo Plc, AXA, Covéa, Allianz, and Generali.

“The capital component of the exercise confirmed that the main vulnerabilities for the sector stem from market shocks, and, specifically, from the decoupling of the risk-free rate and risk premia, the so-called double-hit scenario,” said the regulator.

“In the fixed balance sheet approach, where no management actions against the prescribed shocks could be enforced, the aggregate solvency ratio decreased by 92.1 percentage points to 125.7%, bringing nine undertakings under the regulatory threshold of 100%.”

Meanwhile, it was highlighted that, under the constrained balance sheet approach, results improved when participants were allowed to take reactive management actions. What this means, said EIOPA, is that the insurance industry has tools at its disposal to cope with adverse market and economic effects.

As for the liquidity component of the stress test, it was found that participants’ liquidity position appears to be a less significant concern compared to solvency positions, given large holdings of liquid assets. However, it was pointed out that insurers cannot rely solely on cash holdings to cover unexpected outflows.

“The stress test has shown that European insurers can maintain their financial health even amid harsh economic conditions,” stated EIOPA chair Petra Hielkema. “I’m pleased that at no point did participants report a post-stress asset position in which insurers’ commitments to policyholders would have been jeopardised.

“Below the surface of these positive results, however, is an often-heavy reliance on transitional measures, which are going to be phased out by 2032. In the months to come, we will turn our attention to the vulnerabilities that were brought to light in the exercise. We will also call on legislators to consider disclosures of individual results to become a legal requirement.”

Of the 44 participants, only eight consented to the release of their individual results.

The goal of the stress test was to give supervisors a valuable insight into the capital and liquidity positions of European insurers under a severe but plausible scenario. EIOPA said it also provides a useful basis for a follow-up dialogue between group supervisors and the participants to address vulnerabilities.

“EIOPA and the national competent authorities will analyse the results further to gain a deeper understanding of the risks and vulnerabilities of the sector,” added the advisory body. “EIOPA will also assess the need for issuing recommendations on relevant concerns identified in the exercise.”

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There are a lot of different elements that go into being a great insurance employer. From incentive programmes, to flexible work options, to employee benefits – all of these factors are critical to the wellbeing and satisfaction of the teams that make a business’s success possible. During the last 18 months, a spotlight has been shone on the need for employers to support their people and, across the UK, certain insurance businesses have stepped up to the mark.

These firms have been recognised by Insurance Business UK (IBUK) in this – the second annual Top Insurance Employers report.

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Earlier this week, MCE chief executive Julian Edwards told Insurance Business: “I received a letter from Kroll saying they want to disclaim all non-motorcycle policies from a midpoint in January and would like us to write to all policyholders on Friday, notifying them of this.”

Edwards had said that he would like serious consideration given to customers.

Read more: MCE Insurance CEO issues request for extension from joint administrators

Now, in a new statement, the motorcycle insurance broker highlighted: “The non-bike portfolio in question is comprised of a great number of policyholders who would be deemed essential workers.

“These include policyholders who work in delivery, healthcare, police, armed forces, transport, social care, NHS, education, and financial services. The commercial vehicle element of the portfolio, in particular, features a huge proportion of delivery drivers.”

In MCE’s view, given the far-reaching social and financial implications, essential worker occupations should be fully considered before deciding to unilaterally disclaim and cancel the non-bike business.

“These occupations should be analysed,” declared the broker, “and a phased plan should then be put in place to support these customers, as well as possible vulnerable customers.”            

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Global reinsurer Swiss Re has announced the reorganisation of its group operations which will see group chief operating officer Anette Bronder leave the company. Swiss Re has also announced the appointment of Pravina Ladva as group chief digital & technology officer and as a member of the group executive committee, effective January 01, 2022.

In a Press release, the reinsurer noted that all technology-related responsibilities will come under the remit of Ladva’s new leadership role. Meanwhile, corporate real estate & services and communications will report to group chief human resources officer Cathy Desquesses. Other functions will report into areas of the company that match up with their mandates.

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The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in H1 2022.

Commenting on the news, David Ross, group CEO of Ardonagh noted that the recommitment of HPS and MDP continues a partnership that has allowed the group to become an international broking powerhouse. He added that continuity of ownership after six years is the “optimum outcome” for Ardonagh as it allows the management team to focus on the execution of its strategy and the preservation of the group’s culture.

“We are also delighted to welcome HPS and MDP co-investors to the group,” he said. “Their global, long-term ambitions are perfectly aligned with our own and those of our other shareholders, securing our goal of being a private enterprise for years to come. Today is a major milestone in Ardonagh’s journey and the achievement belongs to our greatest asset – every one of our people.”

Ardonagh, which was founded in 2017, has grown to become a top 20 global insurance broker, placing $13 billion of premiums across the group and overseeing a global workforce of some 8,000 people across more than 100 locations. As of 30 September 2021, Ardonagh had an LTM (Last Twelve Months) Pro-Forma Income of $1.5 billion and LTM Pro-Forma Adjusted EBITDA of $530 million.

Vahe Dombalagian, managing director and co-head of the MDP financial & transaction services team, said: “We have supported Ardonagh since the formation of the group and in that time, we’ve witnessed tremendous growth and diversification.

“Ardonagh has ample opportunity to continue to build on its platform and increase its reach and profitability, and by increasing our investment today we are reaffirming our commitment to continue supporting those efforts. We are proud to be a key shareholder behind the Ardonagh workforce and look forward to our continued partnership, alongside HPS and our and their new co-investors.”

Scot French, governing partner of HPS also commented on the deal and said that throughout the business’s multi-year relationship with the broking group, it has maintained support for Ardonagh’s vision of building a “best-in-class, global insurance brokerage platform”. He added that HPS is excited to remain a meaningful investor in that journey.

Hamad Al Dhaheri, executive director, private equities department, ADIA, said: “We are pleased to partner with Ardonagh, alongside HPS and MDP, to support its strong management team in executing its global growth strategy. This investment continues to build on our strategy and track record of investing in market-leading businesses across the insurance industry value chain.”

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When he stepped down as chief executive of Tesco Bank in 2018 after a decade in the driving seat, Higgins wasn’t sure he wanted to take on another full-time executive role. But before he knew it, he was embarking on a range of new responsibilities, including becoming chairman of the Edinburgh Festival Fringe Society and chairman of the Fine Arts Society (London and Edinburgh), alongside numerous other titles.

The choice to be busy was almost being made for him, he said, and when he was approached by Kevin Spencer [group CEO of Markerstudy] and the Pollen Street Capital team, he was drawn in by the opportunity to be part of this “extraordinary organisation”.

“When you have the privilege of being able to pick and choose what you do, you start to think quite clearly about your criteria,” he said. “For me, it’s about working with an organisation that is trying to do something decent and worthy, something that has a clear sense of purpose. It’s about an organisation that has good values and what inevitably goes alongside that is good people. And it’s also about having a bit of fun along the way as you work hard and make a contribution. There’s no doubt that Kevin himself embodies all of that but it’s also true for the broader team.”

Higgins noted that Markerstudy, which was built from the ground up by Spencer over the last two decades, is entering into a new and accelerated growth phase, making it a uniquely exciting time to onboard. When a business with the reputation and standing of Markerstudy enter into a new stage, he said, new disciplines need to be introduced but must be done in a way that does not sacrifice any of the core values that made it successful originally.

Rather it’s about making it a much bigger, more publically-visible business, he said, as he has seen from his own experience how, as companies grow, they garner more interest from regulators, customers and the media. Higgins is looking to bring his own substantial experience to ensure Markerstudy is ready to embrace that new attention and to showcase the customer-first service that underpins the long-term success of the insurance business.

“This is a business that looks after customers in a slightly different way,” he said. “We use data in a way that very few others do. We have huge amounts of internal data because we do so many different types of insurance and we can bring all that together, and also access all publically available data. The important thing about using data is to make customers lives easier and better and that’s what we try to do. This is also a business that has many different ways of touching customers, and [we take] an omnichannel approach to that.”

Read more: Markerstudy Broking, Consumer Intelligence team up

Markerstudy prides itself on insuring risks that other insurers don’t, he added, and has built a strong reputation for doing just that. From vans, to commercial vehicles, to taxis, to motorcycles – these are all insurance areas where, throughout his career to date, Higgins has seen that insurers either know to do them successfully or they don’t. Markerstudy has a clear history of success in those markets and he is looking forward to seeing that continue to evolve, as well as further inroads into coverage areas such as pet insurance, which has “huge opportunity” as a market.

It’s a business with real passion behind it, he said, and the test for how that passion translates into success as it steps up a gear will be how the company fares over the next year or so. Ultimately, however, Higgins noted that the attainment of this success really lies with the Markerstudy team.

“It’s all about people,” he said. “Ultimately, all the choices I’ve made in my life have been about people – the good choices, the bad choices, the difficult decision and the good decisions. There’s a really strong team at Markerstudy, and Pollen Street are an incredibly good organisation. I’ve had the opportunity to work with a number of private equity firms and houses over the years and they come in many shapes and forms. Pollen Street are the best [I’ve seen] because they’re very mature in how they choose businesses and people to run businesses.”

Pollen Street trusts its people, he noted and supports them all along the way, it’s never a checkbox exercise. When Higgins was officially welcomed to the team earlier this year, he emphasised that ESG was a “top priority” for Markerstudy and that he was passionate about fostering a deeper understanding of an organisation’s social and governance principles. Whereas even a few years ago, hearing private equity and ESG in the same sentence was an unlikely proposition, he said, Pollen Street had made it an area of focus, and he was looking forward to helping Markerstudy evolve that agenda.

Now, the firm is well set for its next phase and Higgins highlighted how much he had enjoyed his new role and getting to meet all the team. When he’s in the physical office, he said, there’s a palpable air of excitement and anticipation for what the future will hold.

“We’re in the middle of quite important conversations that will unfold over the next few months,” he said. “There are so many things to do, so much to [make happen] but there’s no shortage of energy and no shortage of focus. I think this is a story everyone can watch with great interest as the next months, really the really the next year or so, goes by.”

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Commenting on the acquisition, handl Group CEO Graham Pulford noted that the deal is a significant step towards the group’s ambition to build a leading market presence in the wellness sector, and that it provides an entry point for new multi-service partnerships. Corporate management teams now place more emphasis on the health and wellbeing of their employees, he said, and preventive approaches to this can be a source of competitive advantage.

“We have been exploring this opportunity with Robertson Cooper for some time, and I am thrilled they have agreed to become part of handl Group,” he said. “It is a highly reputable, evidence-led business and a great fit for handl Group. The team will help spearhead our strategy to diversify into the corporate sector, with a new range of services built around a next generation wellbeing platform.”

Pulford added that handl’s aim is to utilise the experience of Robertson Cooper’s founders – Professor Ivan Robertson and Professor Sir Cary Cooper – who will continue to be involved with the business. The addition of this “talented and skilful” team, alongside handl’s commitment to digital transformation, underscores the group’s ambition to combine the best technology with the best people, he said, and provides confidence that handl’s plans to launch a new group wellness division next year remain “firmly on track”.

Ben Moss, MD of Robertson Cooper said he was excited to be leading the business into the next chapter under handl Group’s ownership. He highlighted that, with the support of its founders, the business had evolved with the health and wellbeing market and was ready for a new level of growth, which would be possible with the support of handl Group.

“We share values around technology, innovation, collaboration and a razor-sharp focus on exceptional client experience,” he said. “handl also brings a commitment to invest in its businesses, plus powerful synergies within the group. For those reasons, and more, I’m confident this is the right change at the right time and look forward to a bright future for Robertson Cooper and its clients.”

Meanwhile, Cooper said, on behalf of himself and his fellow founder Robertson, that the business had been a labour of love for both founders over the last 20 years and, during that time, they had seen their colleagues do “remarkable things for fantastic clients”. He added that he and Robertson were very grateful to be involved with the firm and proud of the impact Robertson Cooper has had on the world of work.

“With all that in mind,” he said, “I couldn’t be happier to be handing over the reins to handl Group. I’m confident they understand, respect and will retain what makes Robertson Cooper valued by so many clients, while also bringing new resources and insight to take the business to the next level. And it’s not farewell from Ivan and I; we’ll still be involved and are excited to be part of what comes next.”

The deal completed on December 03, 2021, and the consideration is undisclosed.  

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The battle to determine the future of the mutual insurer LV= has concluded this afternoon, with members voting to block the takeover of the business by US private equity firm Bain Capital. It has been revealed that a significant majority of voting members (69%) voted in favour of the proposed transaction, missing the required threshold of 75%. Therefore, the takeover bid by Bain Capital will no longer proceed.

The breakdown of the votes (which is subject to verification) highlighted a turnout of 174,240 members – representing 15% of LV=‘s 1.16 million members. 119,225 members voted in favour of the proposed acquisition of the LV= business by Bain Capital, representing 10% of all members. 52,561 members voted against the proposals, representing 5% of all members. Meanwhile, 985,760 members did not place a vote.

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Kemple who first joined Close Brothers’ motor finance division in 2017 steadily worked his way to the position of MD in 2020 and he was several months into this role when he was approached by Rebecca McNeil [CEO, Retail] to take over as CEO of the premium finance business. Speaking with McNeil, he said, he got a great sense of where that business stands, where it wants to go next and what it will take to get there – and he was delighted to accept the opportunity.

“Over the last four or five months, we’ve been focusing on a strong colleague-first piece,” he said. “Traditionally there has always been a big focus on broker-first, which I understand 100%, but if we don’t have happy colleagues, we won’t have happy brokers so we’re flipping that into [an ethos of] having happy colleagues first.

“We’ve been doing a lot of work to understand where our people are at, through opinion surveys, pulse surveys etc. as well as understanding where we’re at as a business, what our proposition is, what conversations look like when we go to brokers and what else can we do. So, we’ve been surveying brokers, and have also commissioned some work on competition in the marketplace.”

Receiving this feedback that offers both an internal and external perspective has been tremendously valuable, he said, and brings great affirmation of what the team does particularly well and where it stands in the wider marketplace. This is helping the firm set its core priorities moving forward. Kemple noted that obtaining this kind of quality insight is essential to drive the businesses he leads into the natural next phase of their growth and means implicitly understanding their structure, culture, broker partners and the wider market.

“Because I’ve been in finance, in digital, in print media, in software, in the accountancy sector, in motor finance and now in insurance – I’m used to learning about different and new markets,” he said. “That’s been a really interesting part of [these roles] for me and the motor team have afforded me great support, and with new roles coming that will stabilise even further. That understanding and discovery piece is so important for me as it allows us to prioritise, to understand what sets us apart from our competitors from a performance perspective, as well as from a colleague and culture perspective.”

That kind of clarity allows his wider team to clearly identify main areas of emphasis going forward, he said, as once a set of priorities has been established it makes it easier for a business to rally around them. Kemple noted that he has been delighted by the talent of the team he has seen in premium finance and is looking forward to tapping into the depth of talent that exists within that team to empower it going forward.

In that spirit, a key focus for both the motor finance and premium finance businesses in recent months has been bringing in great new talent to kick his transformation programmes into the next gear.

Read more: Brokers crucial to post-pandemic recovery, says Close Brothers PF

For Kemple, who has held several senior roles in a variety of industries over the last two decades or so, the key to setting strong operational and strategic objectives goes back to that culture and people piece. Seeing an improvement in top-line numbers is brilliant, he said, and a great affirmation of a strong strategy, but having a culture that allows people to know they are an instrumental part of its success story and are empowered to contribute in meaningful ways is the key to long-term achievement.

Seeing your people thriving and enjoying their work is the most rewarding part of being a leader, Kemple said, and he has already seen from his work with the motor finance team how this emphasis can pay dividends. Developing people to the best of their potential may see them move on in time, but that’s what a good manager should support and, having that kind of culture, will in turn draw in the best talent from the rest of the industry.

“We’ve developed an internal strapline ‘together, we are premium’,” he said, “and we’re developing a whole new approach to colleague engagement… And we’re really keen to get back into the office and see people and be with each other, I can’t wait to do that. And I know that the leadership team across Premium are all in the same position.

“[…] That culture piece is something that we’re only really getting started on, it’s incredibly important and aligned to what we’re doing here, around how it feels to be an employee of Close Brothers and how this business puts people first in everything it does. And that’s only going to grow.”

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Property, commercial, and specialty (re)insurer IQUW, whose cover is underwritten by Lloyd’s Syndicate 1856, has recruited Rene Lamer to serve as underwriting and operations managing director of the group’s Bermuda business.

The new unit, which is led by IQUW reinsurance head and Bermuda chief executive Stephen Young, was launched in July.

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