Fundamental strategic review to take advantage of new gaps

Lloyd’s has begun a strategic review by Deloitte to ensure it exploits gaps in the market thrown up by the financial crisis, the FT reports.

A new strategic plan to be published in January.

Opportunities exist because:

  • The failure of AIG
  • The withdrawal of capital from hedge funds or other private equity interests
  • Lloyd’s rebuilding a reputation as a well-capitalised place to do business (many in the US suspected that it would one day collapse)

Fundamental review

Richard Ward, chief executive, said: “This year I thought it was the moment to do a more fundamental review involving an extensive engagement exercise with all our stakeholders, rather than just update the three-year plan.

“We find ourselves in a position of strength and in an environment where the subscription model [which spreads risks among many counterparties] has become more attractive.”

An individual brand?

Greg Case, chief executive of US-based insurance broker Aon, said: “What they have to continue to work out is whether Lloyd’s is an individual brand and strategy or is a collection of often diverging strategies.

Personal touch

The FT also commented: “When an over-reliance on computer models and screen-based transactions is being blamed for leading high finance astray, it is obviously not the moment to cast doubt on a personal touch refined over three centuries.”