Welcome once again to London Calling, our third edition at Tysers. We have our usual mix of articles, interviews and features as well pictures of their day in Lloyd’s. We should never as details on some of Tysers various product forget the debt we owe such people. lines. We received tremendous feedback NEWS from our last edition earlier in the year, and The market remains stubbornly stuck in a negative London Calling was circulated to over 20,000 gear, highly over-capitalised, particularly so in liability people in the insurance sector both in London lines of business, with almost saturation levels of and throughout the United States. competing markets bringing down rates and with it We are delighted to feature in this edition, underwriting standards. Blind pursuit of volume and Lloyd’s of London’s new Chief Executive Officer, market share will continue unabated until a correction, the outstanding Inga Beale, giving London which we believe is some way away. The much improved Calling a 20 questions interview, also stalwart There is however, genuinely better news on the economic situation underwriter, economic front as the United States (and the UK) have some cogentDavid thoughts Nicholson from ofWes Beazley. Butcher We achieve considerable growth and are now driving should prove to be a of Atrium. On a lighter note we have Camp strongly away from the recession that has so dented economic fortunes throughout the world big boost all round” Freddie (aka Paul Emuss) detailing his Italian charity scooter ride, our regular ‘Dear Bill’ since 2008. David Doe letter competition as well as ‘name the face’ a It has been a long time coming, but the much Editor picture of a leading market figure in an unusual improved economic situation should prove to be a situation. We also feature some suitably big boost all round with increasing earnings, and blurry pictures from our support of the British growth in new business start-ups acting as a good Boxing Board of Control’s annual awards antidote to the acute soft trading conditions of the dinner. And in a year that has marked the 100th insurance market and should proffer opportunities anniversary of the start of the 1st World War for underwriters and brokers alike. Ironically, the and the 70th anniversary of D-Day, it is was frothy stock markets, all of which without too much a privilege for the Lloyd’s market to welcome fanfare have over the past two to three years been veterans of the Normandy landings on a visit and steadily returning very high profits could actually luncheon to Lloyd’s, and we have some excellent act to produce yet more capital to an already over- Whats inside this edition of supplied insurance sector. Short of a major event, be it say a hurricane or earthquake, the situation 6 || IN THE CITY by David Doe MR. CARNEY’S REBUKE 10 || MARKET INTERVIEW 4 WES || NEWS OF THE WORLD by David Doe As the ‘Likely lads’ signature tune plays out ‘..the 20 only thing to look forward to is the past!’ is this || 1976 MUSICAL REVOLUTION BUTCHER really our future? To reminisce about our past? I’m not sure, maybe I’m getting too old, been on the merry-go-round for too long and need by David Doe Newly appointed head of professional lines to get off of it? Possibly, but I was looking at underwriting at leading Lloyd’s Syndicate Atrium, our underwriting results, our personal in-house results, and you know what? Even looking at our LONDONCALLING? gives London Calling a quick ten question latest set of fi gures I think I’ll stick with that old THE MACRO bible of rough notes and carry on underwriting in market interview the way I was brought up. VIEW scene in the US 12 started by Bill LONDONCALLING | LLOYD’S A very professional, very talented underwriter tidal wave of Hayley and his 21 LEGEND U similar and ever band the Rockets, | P the improving (so I am told) was talking about Lloyd’s and how advent created of the electric new musical a | Q. HOW IS 2014 SHAPING UP FOR YOU? Q. WHAT CAPACITY DO YOU HAVE AT approach will remain consistent. We may have 8 his portfolio is shaping up. His been underwriting K guitar sounds, N the a uniquely along | 1950s; Buddy new style with Mark Carney Reasonably well David and largely in line with YOUR DISPOSAL? lost a little “grey hair” from the team but we still | MARKET for four years, so ‘knows his stuff’ but that is just rO Holly canonised of music is the governor youth leader by emerged England, the UK’ of the Bank of our planning expectations. We are very fortunate Our maximum line is $7.5m. have very capable and dynamic underwriters C of this his early death in s central bank, the smooth gave up political it, he really doesn’t – not yet. It will come, I’ve no new musical became control over the bank INTERVIEW market appeal explosion. an almost talking Canadian meant no longer which clear up the to work with an en excellent pool of MGUs, and a absolute fi rst class claims operation. k but again Elvis Presley is highly government mess of the doubt about that but well he needs a few more the sounds, had mixes regarded and setting interest fi nancial crisis that was Program Administrators, Agents and Brokers Q. THE CURRENT MARKET REMAINS so explicit the looks a broader with ease amongst rates and certain major effectively caused, miles until I would call him a good underwriter on the then and his NEWS the political economic levers. as many believe, by STUCK IN A VERY NEGATIVE SITUATION – Q. DO YOU THINK THAT THE much new medium hip snaking and business elite the government True of greed and a culture distributing our Lloyd’s products across North thought, of television dancing, as well as civil sets economic policy personal gain without HOW DO YOU HANDLE THIS? MARKETPLACE WILL GET WORSE BEFORE LLOYD’S CHIEF EXECUTIVE– sure you can be professional,OFFICER be competent but then after was at fi rst mandarins. service central but the the damage regards to America. Working alongside professionals of fi lmed outrage shown without Being Canadian bank effectively manages being done to and of course have achieved that vital pass in from above had to be advantageous is probably elements the fi scal society let alone the this calibre makes our life much easier as we all With caution!.. We must underwrite with our IT GETS BETTER? the waist. restricted as he is of the economy economy of the country bottle, rock ‘n’ roll and the adventBut ofthe the genie teenager had arrived. that In America, he was almost a ‘neutral’ , and as witnessed . There is no question eyes wide open and understand our exposures I suspect so if one talks in very broad terms. an extremely diffi cult insurance examination was most in a UK with an often by the UK’s growing that many in look for ways to successfully grow our business black defi nitely challenging recovery – the the ultimate regulatory precisely. “Niche” is an often overused term in There will of course be pockets of improvement but there is currently no qualifi cation available leather out of the mix of personalities cocktail fi rst quarter UK in the position oversight profi tably. motorcycle jackets, and cultural of 2014 had the of the central bank but generally over capacity will prevail until uniform with hair greased back andwhite of course bundles of attitude. nationalistic and economic fastest pace of unacceptable viewed clearly the this industry but we do believe that is a term that can equal the acquired grey hairs and grey tee shirts and opinions, he has growth amongst the face of capitalism other investments begin to look more attractive. jeans was the excellent been an Western leading mature the not just in Q. ARE YOU PLEASED WITH YOUR that applies to us as we look to be specialists matter accumulated over the decades of doing Britain youth choice, he has deftly economies – the UK, but even more TO UNDERWRITE, INGA BEALE followed the all manner of things. dealt with Bank of England is so in the USA, that CURRENT PORTFOLIO OF BUSINESS AND rather than generalists. This keeps us out of the There are still back year reserve releases that the same job. American scene doing a good job at conduct vast swathes to group, Teddy although fi xing the broken economy of fi nancial transactions IT’S DEVELOPMENT? main stream to some extent and people look to can and will be made that will continue to boys, with there was 18 Notably choosing of 2008 when without strategic We learn by experience and of course we shoes they formed arguablyoutrageous Britain’ a fl amboyant much care when the fi nancial crisis planning or any consideration Absolutely. We have a wonderfully diverse partner with us for the unique things that we disguise true underwriting profi tability. How colours and sub- | LCC Alex Salmond, the Scottish First Ministerdealing with required medicine hit. The or indeed OR NOT TO UNDERWRITE? cowboy ties LLOYD’S CYCLING CLUB of slashing care for the interconnected book of business which gives us tremendous long can this go on for though? also learn by our mistakes, given the current reason Britain s fi rst musical youth tribe. For andwhatever crepe by Gavan Connolly , who and interest rates outcomes potential offer. We are of course strong advocates for the Q.