JLT Re poised to halve fac energy team
JLT Re has placed a number of brokers in its facultative energy team under consultation, with the team expected to downsize from 12 to five, The Insurance Insider can reveal.
The unit, which places both upstream and downstream energy, is led by Jeremy Colletta, who is believed to be among the brokers at risk of redundancy.
Sources said that the team has been hit on two fronts, necessitating the cost-cutting exercise.
JLT Re has lost business over the last year to Capsicum Re following the defection of the firm's most senior marine and energy broker Alistair Lockhart-Smith and his number two Jerry Reeves.
In addition, the London energy market as a whole has come under sharp pressure as reduced demand caused by the depressed oil price has combined with rampant overcapacity to reduce the top line by more than half.
In a statement, a spokesperson for JLT Re said: "JLT Re has a very strong and growing facultative offering comprising some 35+ people.
"Given the environment in the energy fac space we have made some changes to ensure that we are focused on the needs and requirements of our clients and markets."
They added that it was company policy not to comment on people matters.
Middle Eastern energy account Al Koot is believed to be among the business lost since Lockhart-Smith left in 2015.
It is understood that JLT Re will try to find suitable roles for the staff whose roles are made redundant as part of the attempt to address its cost base.
Following swingeing reductions in premiums across both upstream and downstream energy, signs are starting to emerge of companies moving to cut costs.
As revealed yesterday by The Insurance Insider, Chaucer has taken steps to scale back the size of its energy team.
Julia Aasberg, class underwriter for exploration and production, and Vera Schneider, class underwriter for renewable energy and energy liability, are both understood to have left the firm.
Additional moves are likely in the coming months, with market sources adamant that the current rating environment is unsustainable.
Claims activity has also shown signs of an uptick, with the market currently grappling with the $1bn+ Jubilee loss and with Noreco, while major claims Pemex and BigFoot were only recently settled.