Powered by: C ARLO TWedOnesday DSeptemAber 13Y, 2017
Lightyear’s Sullivan backs
‘prize asset’ Ed as CEO
reveals talks with McLaren
Martin Sullivan, the former chief executive
of AIG and now a partner in Lightyear
Capital, has denied rumours that the private
equity firm is looking to sell its stake in broker
Ed—of which he is also non-executive chairman.
“We will sell Ed one day—we are a private
equity fund. But that will not happen any time
soon,” he told Monte Carlo Today. “Ed is a prize
asset for us and that does mean we get incoming
enquiries. But we have agreed a strategy and we
are fully behind them executing that plan. We are
completely committed to seeing that through.”
A fundamental restructuring of the broker was
kick-started when Steve Hearn, chief executive of
Ed, took the reins of the company in November
2015. He had resigned from Willis, where he had
been deputy CEO, four months earlier.
At that point, the company was saddled with
$400 million of debt and had a complex network
of operations. The business cleared the debt
by selling Swett & Crawford for $500 million to
BB&T. The company also received a $35 million
capital injection from Lightyear Capital.
Hearn then set about reorganising and
refocusing the company. (Continued on page 4)
COMMENT pages 6 and 8
Buyers rush to buy more
protection post hurricanes
Beale mulls ILS solution
to protect Lloyd’s market
using new UK regulations
Lloyd’s is exploring the possibility of
issuing insurance-linked securities (ILS)
using new regulations that will allow them to
be issued from the UK to protect the market,
Inga Beale, chief executive of Lloyd’s, told
Monte Carlo Today.
Beale said that once new regulations
allowing ILS issuance from the UK come into
force—expected in the fourth quarter of this
year—she is keen to help kick-start a London
ILS market, ideally by helping pave the way for
some early deals.
One tactic to achieve this is by working
with the London Market Group’s (LMG) ILS
taskforce led by SCOR executive Malcolm
Newman, which is exploring a possible deal
designed to cover emerging market risks.
While Lloyd’s will encourage its members
to leverage the new ILS framework in the
UK, Beale said that she was also exploring the
possibility of using it to benefit the market as
“My guess, watching how quickly the capital
markets can work, is that we will see some rapid
issuance using the new facility,” Beale said.
“The LMG is going to look at this and
get something going around uninsured risks,
possibly in emerging markets. It would be good
to see something like that launched quickly.
Allianz may seek additional reinsurance protection for cyber
Allianz is pondering whether it should
buy more cyber coverage, Amer Ahmed,
CEO of Allianz Re, which handles the
insurer’s reinsurance buying programme, told
Monte Carlo Today.
The insurer is already buying specific cyber
reinsurance policies in some instances, but
there might be demand for more, he said.
“It starts at the front in terms of what cyber
risk exposures you take on and what clients
want to buy. As this develops and evolves we
will have to look at what reinsurance we need
for that specific risk,” Ahmed said.
Cyber cover is seen as one of the few growth
opportunities in the current soft market. Gross
written premium of the global cyber insurance
market is expected to grow to $8.6 billion by 2020
from $3.4 billion in 2016, according to Munich
“It is an ever-growing exposure which is
beginning to be better understood by everybody
in the chain,” Ahmed said.
Demand for cyber protection is growing on the
back of cyber attacks (Continued on bottom of page 2)
“It is early days and nothing concrete exists
yet but we will also explore the possibility of
Lloyd’s using this form of risk transfer centrally,
on the behalf of the entire market.
“The main focus for now is how members
could benefit individually, but if there is a way we
can use it to benefit the entire market, we will.”
Beale said she had received good feedback
from investors (Continued on top of page 2)
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