Patrick O'Sullivan named in race to replace Prettejohn

Zurich Financial Services' group finance director Patrick O'Sullivan has been touted as a candidate to replace Nick Prettejohn as Lloyd's chief executive.

The news comes amid continued speculation in the Lloyd's market on Prettejohn's successor. Prettejohn announced his resignation last week.

O'Sullivan, the former chief executive of Zurich's general insurance and banking arm in the UK, Ireland and South Africa, is a formidable industry heavyweight and has been described as one of the "deepest thinkers" in insurance.

He joins a long list of senior Lloyd's executives and market figures who have been linked to the top Lloyd's job. These include Julian James, Lloyd's director of worldwide markets, Bronek Masojada, Hiscox chief executive, and Amlin chief executive Charles Philipps.

Charles Roxburgh, head of UK financial institutions practice at McKinsey, has also been suggested as a candidate.

Senior market figures have suggested that a candidate who understands the Lloyd's market would be preferred over an "outsider".

One Lloyd's council member said he did not expect people to leave Lloyd's companies to do the top job at Lloyd's.

Sanctions mooted for not meeting Lloyd's standards
Lloyd's should impose sanctions on firms that fail to adhere to guidelines on meeting contract certainty, out-going Lloyd's chief executive Nick Prettejohn has said.

Expressing his personal views on the matter, Prettejohn said the ultimate sanction for firms that do not meet market standards should be "an operational risk loading in the calculation of syndicate capital requirements".

He said: "The health of the brand - the Lloyd's brand, and indeed the London brand - never mind the regulatory integrity of our market, depends on that change in behaviour being achieved."

A Lloyd's spokesman said there were "no fixed plans" for penalties, but it was "something that could be done if targets are not met".