Aon Announces New Leadership for Reinsurance in UK and Ireland team
AON announced a series of leadership appointments within its Reinsurance UK and Ireland team that will support the efficient delivery of solutions and services to clients.
Effective immediately, Andrew Buckland serves as chief operating officer, Charlie New serves as head of business strategy, Andrew Larkin serves as head of property, and Richard Evans serves as head of longtail and structured solutions. The leaders will report to Tom Murray, head of Reinsurance for the UK and Ireland, in addition to his position as co-leader of Aon’s Global ReSpecialty.
Andrew Buckland, chief operating officer – will oversee Reinsurance business operations for the UK and Ireland, including operational excellence, infrastructure and transformation initiatives and people development, supporting efficient and scalable delivery for clients and colleagues.
Charlie New, head of business strategy – will be responsible for shaping and executing strategic agenda for Reinsurance across the UK and Ireland, including growth initiatives, market positioning and key change programmes, ensuring close alignment with client needs and Aon’s global strategy.
Andrew Larkin, head of property – will lead Aon’s Reinsurance property business across the UK and Ireland, overseeing client strategy, market relationships and the development of tailored risk transfer and advisory solutions. He will maintain his current role as the head of Australia and New Zealand, leading the team that places treaty business from those territories into the London, European and Bermudian markets.
Richard Evans, head of longtail and structured solutions – will lead the longtail portfolio for the UK and Ireland, including motor and liability lines, with a focus on delivering insight-led, analytically driven solutions to address clients’ long-term and emerging risks, incorporating his role as head of structured solutions.
As head of Reinsurance for the UK and Ireland, Murray is responsible for the overall strategy, performance and growth of Aon’s reinsurance operations across the region. He will focus on bringing the full breadth of Aon’s capabilities to clients, strengthening collaboration across solution lines and driving innovation to meet evolving client needs.
“I’m delighted to work alongside such an immensely strong leadership team,” said Murray. “These leaders each bring their own unique deep expertise and a strong track record of delivering for clients. We will continue to focus on helping our clients navigate volatility, build resilience, and make better decisions that protect and grow their businesses.”
“These appointments really highlight the strength and depth of our UK and Ireland Reinsurance team,” said Andrew Laing, CEO of Reinsurance for the UK and chairman of global facultative for Aon. “This new leadership structure strengthens our ability to bring the best of Aon to clients across the UK and Ireland, enhancing our focus on growth, innovation and operational excellence.”
The new leadership structure demonstrates Aon’s ongoing commitment to invest in its UK and Ireland reinsurance platform and deliver integrated solutions that create measurable value for clients.
Lemonade Expands Home Insurance Offering in the UK
Lemonade, the digital insurance company powered by AI and social impact, announced the launch of Buildings and Contents insurance in the United Kingdom. Expanding the company’s home insurance offerings, homeowners throughout the UK can now purchase extensive coverage for their home and belongings.
Since launching in the UK in October 2022 and becoming a PRA-licensed carrier, the UK has quickly become one of Lemonade’s fastest growing markets. The launch of buildings and contents insurance, with the ongoing partnership of established insurer Aviva, will bolster Lemonade’s continued growth.
“The UK has proven to be an exciting market for us with a large digitally-savvy population who appreciate an easy, personalized experience,” said Daniel Schreiber, Lemonade CEO and co-founder. “Growing our home insurance offerings this quickly is a tribute to our incredible team and our thriving partnership with Aviva.”
Designed specifically for UK customers and with a Defaqto 5 star rating, homeowners can get instantly covered through the Lemonade app or online starting from £14 a month*. In addition to base coverage (rebuild costs, temporary accommodation, civil and property liability) and flexible contents coverage up to £100,000, Lemonade’s Buildings & Contents insurance also provides a suite of add-ons to provide full-scope coverage and flexibility, including:
– Home emergency: Emergency assistance provided in case of events such as a broken boiler, burst pipes, broken locks or electrical failures.
– Accidental damage: Coverage provided for unexpected accidental events that damage your content or home.
– Theft and Loss: Theft and accidental loss in and outside your home is covered; bikes, laptops, and phones are included.
– Legal Protection: Specialized legal assistance provided in handling disputes about the insured home, clinical negligence, and contracts of employment.
“We’re excited to expand our partnership with Lemonade in the UK, building on our first product launch in 2022,” said Jon Marsh, MD Partnerships and Transformation, Personal Insurance at Aviva. “Aviva and Lemonade share common values and by working together we can create compelling new propositions and experiences for customers.”
Residents of the UK can now buy a new policy through the Lemonade app, lemonade.com/uk.
Lemonade is licensed and supervised by the Dutch Central Bank (DNB). Lemonade operates in the UK through its UK branch establishment, authorized by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority.
Sun Life completes sale of its UK business
Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) announced today it has completed the sale of SLF of Canada UK Limited (“Sun Life UK”) to Phoenix Group Holdings plc (“Phoenix Group”) (LSE: PHNX). Headquartered in London, Phoenix Group is the UK’s largest long-term savings and retirement business with more than 12 million customers and £260 billion of assets under administration.
This transaction will see Sun Life UK’s life and pension policies and annuity blocks for UK Clients move to Phoenix Group. Sun Life UK has been closed to new sales and has been operating as a run-off business in the life and pension policies segment since 2001. Sun Life will retain its economic interest in UK’s payout annuities business.
As part of the sale, Sun Life will begin a long-term partnership to become a strategic asset management partner to Phoenix Group. Sun Life’s asset management companies, MFS and SLC Management, will continue to manage approximately C$8 billion of Sun Life UK’s general account.
Phoenix Group has set a goal to invest approximately US$25 billion in North American public and private fixed income and alternative investments over the next five years. MFS and SLC Management will be material partners to Phoenix Group in achieving this goal.
Amazon debuts home insurance store in the UK
(Reuters) – Amazon.com Inc (AMZN.O) is launching a home insurance portal in Britain and has signed up three big-name insurers as it pushes further into financial services across the globe.
Ageas UK (AGES.BR), Co-op, and LV= General Insurance, a unit of German insurer Allianz (ALVG.DE), will provide third-party services initially, Amazon said on Wednesday, and it hopes to add more insurers “early next year”.
Moneysupermarket.com’s (MONY.L) shares slumped more than 8% on Wednesday following the news that Amazon will be stepping into the insurance-price comparison market.
“Amazon will be a major threat if it earnestly invests and focuses its efforts in this market,” Peel Hunt analysts said in a note, adding that insurance – including home insurance – makes up around 43% of Moneysupermarket’s business.
Moneysupermarket said earlier this week it expected annual core profit to be at the upper end of market views, as the cost-of-living crisis in Britain focused consumers’ minds on saving money.
Other firms operating comparison sites include Uswitch, Compare the Market and GoCompare, owned by Future (FUTR.L), whose shares fell by more than 3%.
Insurers worry that tech firms will steal a march on their business, and are keen to partner with them, offering them commissions for selling their products.
The Amazon portal was “an exciting move for the industry”, said Simon Hird, partnerships director at LV= General Insurance.
The site would give insurance customers more choice over how they buy cover, said Charles Offord, managing Director, Co-op Insurance.
Amazon has been considering launching a comparison website in Britain for several years. Reuters reported exclusively on its plans in 2018.
The new portal, Amazon Insurance Store, will also include customer reviews and ratings on insurance companies and the rate at which the claims were accepted for policies offered, Amazon said.
Amazon partnered with Lloyd’s broker Superscript last year to offer insurance to small and medium-sized UK business customers.
It started offering motor insurance in India in 2020 through Acko General Insurance and also provides product warranty insurance in Europe.
It also launched a buy-now pay-later scheme in Britain with Barclays (BARC.L) last year.
Lemonade launches in the UK
Lemonade (NYSE: LMND), the insurance company powered by AI and social impact, today launched in the United Kingdom. Residents across the UK can now get Lemonade Contents insurance instantly, from anywhere, on any device, as well as file claims and get paid in seconds.
Today’s launch follows Lemonade’s previous launches in France, Germany, and the Netherlands.
Founded in 2015, Lemonade launched its flagship renters insurance in the United States in 2016, where it is now ranked one of the top renters insurance products in the market. With today’s launch Lemonade brings the same instantaneous and delightful experience to residents in the UK. Customers can get a quote, purchase contents insurance, file a claim, and get paid – all within seconds.
As a Public Benefit Corporation and Certified B-Corp, Lemonade has social impact baked directly into its business model. Through its Giveback program, the company donates leftover premiums to non-profit organizations selected by its customers, supporting causes like equality, climate, and poverty.
Residents in the UK are now able to protect their belongings with Lemonade, featuring a Defaqto 5 Star Rating, starting at just £4 a month. Lemonade’s Contents insurance includes worldwide coverage for individual personal items of up to £2,000 each, total coverage up to £100,000, and no cancellation fees. Add-on coverage is also available for those who want extra protection for theft and loss-related incidents, accidental damage to mobile devices as well as expert help through legal protection.
“Insurance as we know it hails from the UK, as do I. So both professionally and personally bringing Lemonade to the UK is a homecoming of sorts,” said Daniel Schreiber, Lemonade co-CEO and co-founder. “We believe the millions of local renters will appreciate what Lemonade has to offer. After all, who doesn’t want instant, transparent, personalized, and mission-driven insurance?”
Lemonade is entering the UK market in a long-term, strategic partnership with leading UK insurer, Aviva.
“We’re excited to be appointed as the long-term partner for Lemonade in the UK. We share a common outlook for how digital, AI and data can transform customer experiences, and the role insurers can play in building stronger communities,” said Adam Winslow, CEO of Aviva UK & Ireland General Insurance. “By joining forces we can ensure compelling propositions reach a broader range of customers, including renters, an under-served yet growing segment of the UK insurance market. In our 325 year history we have adapted and thrived in a changing world and our partnership with Lemonade is a marker of our intent to continue just this.”
“Pairing Lemonade’s strengths with Aviva’s promises to deliver an insurance that is digitally native, yet rooted in the birth of modern statistics in the 1700s. It’s the best of both worlds, giving people a refreshing experience backed by a company they’ve known and trusted for years,” added Schreiber.
Lemonade Insurance NV is regulated by the Financial Conduct Authority (FCA) and subject to limited regulation by the Prudential Regulatory Authority (PRA) in the UK.
Residents in the UK can now buy a new policy through the Lemonade app or online at lemonade.com/uk.
Guy Carpenter appoints Head of Motor and Associated Casualty for UK & Ireland
Guy Carpenter & Company, LLC, a leading global risk and reinsurance specialist and a business of Marsh McLennan, announced yesterday the appointment of Paul Gressier as Managing Director and Head of UK & Ireland Motor and Associated Casualty, effective August 9, 2021.
In this newly created role, Mr. Gressier will be responsible for leading Guy Carpenter’s motor and associated casualty activities across the region, capitalizing on the company’s analytical capabilities and local market knowledge to develop and structure comprehensive, client-focused reinsurance solutions.
Based in London, he will report to Dean Jenner who leads the UK & Ireland Property and Casualty business at Guy Carpenter. Mr. Gressier has been providing motor and casualty reinsurance solutions to clients for 22 years. Most recently, he was Head of Structured Risk at Axa XL Reinsurance, providing solvency relief solutions for clients both in the UK motor space and internationally. During his tenure as Head of International Casualty at XL Re Europe, Mr. Gressier was responsible for UK motor for 15 years.
Commenting on the appointment, Kevin Fisher, Chairman, UK, Global Specialties & London North America, Guy Carpenter, said: “With considerable experience in the casualty arena and in particular the motor industry, Paul is well positioned to lead our operations in this highly technical and rapidly developing marketplace. Combining extensive sector knowledge with comprehensive market data and wide-ranging analytical capabilities enables us to deliver market-advancing solutions for our clients.”
Guy Carpenter appoints Head Actuary for UK non-specialty division
Guy Carpenter & Company, LLC, a leading global risk and reinsurance specialist and a business of Marsh McLennan (NYSE: MMC), announced the appointment of David Arthur as Head Actuary of its UK Non-Specialty business which encompasses Global Casualty, Accident & Health, UK Property and UK Motor, effective October 2021.
In this role, Mr. Arthur will be responsible for overseeing all actuarial activities undertaken within the aforementioned UK business units and will lead the ongoing development of the related analytical and pricing capabilities. Based in London, he will report to Richard Rodriguez, Head of Analytics and Advisory, UK and Global Specialties, Guy Carpenter.
Mr. Arthur joins from Brit Insurance where he was a Senior Pricing Manager, leading the firm’s actuarial teams with a particular responsibility for market intelligence, analytics and pricing for delegated business. Prior to this, he was Head of Pricing at Advent Insurance and operated across all business lines. He also held various lead actuarial positions at QBE Insurance.
Commenting on the appointment, Kevin Fisher, Chairman, UK, Global Specialties & London North America, Guy Carpenter, said: “With over 15 years of actuarial experience in the insurance sector, David brings an invaluable level of pricing knowledge and analytical insight to our team. He will play a central role in the ongoing advancement of our actuarial capabilities and support the effective and efficient delivery of high quality, insight-driven solutions for our clients.”
Deutsche Bank appoints Daniel Ross as Head of Investment Banking Coverage in the UK and Ireland
Deutsche Bank announced yesterday that Daniel Ross will join the bank as Head of Investment Banking Coverage in the UK and Ireland.
Daniel will join from Barclays where he was Vice Chairman of UK Investment Banking and Global Head of Media. He will be based in London and report to Patrick Frowein and Berthold Fuerst, Co-heads of Investment Banking Coverage and Advisory in EMEA.
Frowein said: “This is an important hire into our European business and shows our strong commitment to our UK investment banking business where we have a long-established corporate finance franchise with exceptional sectoral expertise.”
Fuerst said: “We have ambitious plans to strengthen further our UK business, and Daniel brings with him over 20 years’ experience in the industry, with an outstanding track record of advising clients and leading successful teams, and a broad network.”
Daniel’s appointment follows a range of hires by Deutsche Bank in its European investment banking business recently including multiple Managing Directors into the EMEA Healthcare and TMT teams as well as a build-out of its European equity research business where it has hired over 30 research analysts and strategists in the past 12 months.
Deutsche Bank finished the first quarter of 2021 in ninth position in UK investment banking, up from eleventh position last year. The bank advised on numerous transactions in 2020, with strong momentum into 2021, including acting as financial adviser and joint corporate broker on Unilever’s £120 billion unification of the Unilever Group; financial adviser to Caesars Entertainment on its £2.9bn acquisition of William Hill; financial adviser to Bally’s Corporation on its £2bn offer for Gamesys; joint global coordinator and joint corporate broker on the €2.75bn rights issue for IAG; and joint financial adviser and joint global coordinator of the €1.8bn recapitalisation of Tui Group.
Ecclesiastical in UK’s top four for charitable giving
Ecclesiastical Insurance Group has been named the fourth biggest corporate giver to charity in The Guide to UK Company Giving.
The specialist insurer finished higher in the rankings than corporate giants such as Co-operative Group Ltd, Marks and Spencer Group and Vodafone Group and was the top insurance company in the 13th edition of the guide.
The guide from The Directory of Social Change reflects not only the amount of money that companies have donated to charity but also their in-kind support. The guide offers charities advice on how to develop a successful corporate partnership or sponsorship agreement, what to be aware of when seeking company support and how to apply.
Owned by a charity, Ecclesiastical is a unique financial services organisation that donates all its available profits to good causes. Ecclesiastical has donated over £99 million to charity since 2016 and is aiming to reach its ambitious target of giving more than £100 million by the end of 2021.
Ecclesiastical staff gave £400,000 to good causes in 2020 through personal grants and matched donations for fundraising and payroll giving as part of the company’s ‘My Giving’ scheme.
Mark Hews, Group Chief Executive at Ecclesiastical Insurance Group, said: “Owned by a charity, here at Ecclesiastical our core purpose is to contribute to the greater good of society, so charitable giving is at the heart of our business. We’re delighted to be named fourth biggest corporate giver to charity in the UK for the second time running, especially given our relative size. We’re proud to be able to give to good causes year-on-year as well as sharing our wealth of knowledge and expertise, offering practical skills and an army of willing volunteers in our amazing staff.”
Jessica Threlfall, Researcher at the Directory of Social Change, said: “Although it can be difficult to assess financial contributions, cash donations are just one of the many ways a company can offer support to a good cause. They also provide in-kind support such as pro-bono services, like free legal advice and skills-sharing.
“It’s clear from our research that company giving is now much more focused on corporate social responsibility (CSR), which includes initiatives like charity partnerships, educational outreach and environmental sustainability. Many companies involve employees in CSR activities, offering paid days off for volunteering, matching staff fundraising efforts or allowing staff to nominate charities close to their hearts.
“The companies featured in our Guide to UK Company Giving show their commitment to the communities in which they operate, collectively giving over £480 million in cash and in-kind support. We encourage all companies to follow their example.”
Lloyds Bank: UK private sector recovery ahead of global trend
At a country level, the UK in July compares favourably with other countries in Europe and the US
12 of the 14 UK sectors tracked by Lloyds Bank were ahead of global recovery trends in July
Tourism and Recreation and Technology Equipment were the only UK sectors to report a decline in output in July, with Metals and Mining and Chemicals the UK sectors experiencing the fastest increase in output
Proportion of UK firms reporting lower output and attributing this to Covid-19 has fallen every month since April, down to 26% of survey respondents in July compared to 69% in April
UK businesses outperformed their international counterparts on a series of metrics tracking recovery from Covid-19 during July, according to Lloyds Bank.
The Lloyds Bank UK Recovery Tracker, working with IHS Markit, provides unique insight into the shape and pace of the UK’s recovery following the unprecedented disruption caused by Covid-19.
From a Global perspective, PMI data shows a general shift upwards as lockdown measures were eased across most markets. The World PMI rose to 50.8 in July from 47.8 in June with increased output across manufacturing and service sectors,
The debut edition of the monthly Tracker showed that UK businesses’ output increased faster than the global benchmark in 12 of the 14 sectors monitored by the Tracker, indicating UK businesses recovered faster than similar firms in other parts of the world in July. A Tracker reading of above 50 signals output is rising, while a reading below 50 indicates output is falling. The July PMI builds on gradual gains from an exceptionally low point for most countries, the majority now above the key 50 level, with the UK Composite Index reaching 57, comparing favourably with the Euro Area 54.9 and the USA at 50.3.
Although output is now rising in the UK, the outlook is still very uncertain with the risk of future widespread Covid-19 outbreaks, and the figures should be viewed in the context of the historic lows recorded during the second quarter of 2020. All 14 sectors underperformed the global benchmark in April.
UK Metals and Mining (75), Software Services (59), Beverages and Food (63) and Chemicals (66) were furthest ahead of global recovery trends in July. A restart of domestic manufacturing supply chains and a tentative rebound in corporate spending were the main factors driving this outperformance.
The two domestic sectors to fall behind the global recovery curve were Tourism and Recreation (45) and Technology Equipment (39).
Tourism and Recreation Businesses were challenged by a drop in international travel and restrictions on in-person interaction. Businesses in the sector were also some of the last to reopen following the easing of lockdown measures in the UK. Meanwhile, Technology Equipment manufacturing is struggling globally, in part reflecting trade tensions between the US and China.
UK output rising steadily
The proportion of UK firms reporting lower output and attributing this to Covid-19 has fallen every month since the height of lockdown early in the second quarter.
80% of construction firms, 69% of services business and 67% of manufacturers cited lower output caused by the pandemic during April, but by July the number of survey respondents reporting a decline in output due to Covid-19 had fallen to 24%, 28% and 15% respectively.
In July, 12 of the 14 sectors monitored by the Tracker reported rising output compared to June. By comparison, at the height of lockdown in April, every UK industry reported that its output was falling. At that point, Healthcare fared best (39) while Tourism and Recreation output collapsed (2), reflecting the varied sector-by-sector impact of the pandemic.
The manufacturing industry underpinned the overall increase in UK output during July.
Of the manufacturing sub-sectors analysed by Lloyds Bank, those operating in metals and mining reported the greatest rise in output during the month – with a reading of 75 – due to increased demand for manufacturing materials and sales to reopened automotive plants.
Producers of Chemicals (66), Automobiles and Auto Parts (64) and Machinery & Equipment (57) all benefited from the same demand trends.
Technology Equipment (39) makers were the only manufacturing outlier. The sub-sector reported falling output in July, with firms citing ongoing supply chain challenges created by Covid-19, rising air freight costs and US-China trade tensions as contributing factors.
The picture for the UK services industry was more nuanced. Financial Services (63) and Software Services (59) output rose during July, with the latter benefiting from increased demand for digital services during the pandemic. However, the output of sectors that rely more heavily on in-person interaction, such as Tourism and Recreation (45), continued to fall, albeit with the rate of decline slowing for the third successive month.
Employment and jobs
The proportion of firms that mentioned ‘redundancies’ when reporting on their staffing trends is now level with those that mention ‘furloughing’ staff. In July, 23% mentioned them in each case.
Notably, the proportion of survey respondents that mention ‘recalling or rehiring staff’ has increased every month since April, with 14% mentioning this in July, up from 1% in April.
Jeavon Lolay, Head of Economics and Market insight, Lloyds Bank Commercial Banking, said: “Covid-19 has brought about a period of concentrated disruption unlike anything we’ve seen before. Now, as lockdown measures around the world begin to ease, we can better explore the potential shape and pace of the UK’s recovery from the historic lows recorded last quarter.
“The Lloyds Bank UK Recovery Tracker provides a monthly analysis of how UK firms are faring in a global context – and takes a deep dive into the key factors underpinning momentum behind the economic recovery.
“Our debut edition paints an encouraging early picture for a number of domestic industries, although the major caveat is that output is rising from an extremely low base, and the risk of further local lockdowns is very real. Future editions will give a clearer direction of travel for the UK economy, as Covid-19 restrictions evolve and demand profiles change.”
Ed Thurman, Managing Director, Global Transaction Banking, Lloyds Bank Commercial Banking, added: “The impact of coronavirus on business activity is hard to understate. The UK Recovery Tracker will be valuable in analysing the shape, pace and scale of the fightback as firms seek to overcome the challenges of this pandemic.
“The very early signs of recovery measured in July are, in my mind, the result of the resilience and innovation that the UK business community is renowned for – and the ambition that we have seen from our own customers time and time again.
“Clearly, the coming months will be critical in the journey to recovery. This data will help our understanding of the challenges and opportunities facing businesses right across the country. It will also inform our recently launched Big Conversation initiative, a grassroots programme designed to help businesses and communities build back better.”