Sellek and Manning cut loose in Lloyd’s restructuring
Lloyd’s is parting company with two senior executives as part of a restructuring that will see the Corporation move further away from a regulatory emphasis to one of operational risk management.
Commercial director Roger Sellek and head of risk management Steven Manning will step down from their positions, taking with them 25 years combined experience of working for the Corporation.
In a circular to the market, Lloyd’s said the restructuring – which will involve the closure of its risk management and commercial units - was part of a drive to cement its position as the best platform for placing specialist (re)insurance business.
A Lloyd’s spokesperson explained: “It is critical we are organised in the best way to deliver that. For example, it makes sense for investor relations to report to the finance director. These changes will create an efficient and effective structure to deliver our objectives.”
Earlier this year, Lloyd’s CEO Nick Prettejohn had highlighted the need to drive efficiency in the infrastructure of the market in Lloyd’s 2004 annual report.
“Continued cost discipline remains a clear priority and we are committed to maintain our rigorous attitude to containing increases to our cost base, while constantly improving the efficiency of our infrastructure and internal processes,” he wrote in his CEO’s report.
Lloyd’s reported operating expenses from continuing activities as £161mn in 2004, marginally up on the £160mn reported in 2003, and £159mn in 2002.
As part of the restructuring, the risk management function – which under Manning had driven the evolution of Lloyd’s current risk management system – will be transferred into the finance, legal and franchise divisions.
Sellek’s commercial division, which managed relations with investors, broking and ratings analysts, will be split between other departments.
Capital and broking relations will come under the control of former Sedgwick broker Julian James and his worldwide markets division, and will continue to be led by Nick Charteris-Black.
Relationships with investors and the ratings agencies will be managed by Deborah Moor in the finance department, reporting to new finance director Luke Savage, who was appointed in September last year.
The operational risk management function will also report to Savage.
The legal department will take over the management of franchisee relations.
The departures of Sellek and Manning come just weeks after news broke that Lloyd’s stalwart Jeremy Pinchin had resigned from his position as head of reinsurance and claims. In recent months Lloyd’s senior analyst Doug Morton and his colleague Quentin Moore left the Franchise directorate, along with David Roe, a key player in the Syndicate Individual Capital Assessments process.