Lloyd’s CEO looks to leverage historic brand in era of global uncertainty

As Patrick Tiernan steps into his role as CEO of the specialist Lloyd’s insurance and reinsurance marketplace, he has emphasised that the organisation’s primary focus should be on activities that drive sustainable profitability and maintain underwriting discipline throughout the economic cycle.

In a new statement, Tiernan observed that trust in Lloyd’s financial strength and stability is paramount, also expressing his gratitude to his predecessors and the Lloyd’s Council for his new position.

“You have all worked tirelessly to enable the market to deliver several successive years of strong performance and ensured Lloyd’s is now well-placed to grasp a generational opportunity,” he said.

Looking ahead, Tiernan noted that in a time of global uncertainty, he firmly believes Lloyd’s can leverage its relevance, influence, and brand to educate, innovate, and inspire.

“As our long history amply demonstrates, risk and opportunity are two sides of the same coin. While we must acknowledge that we are a small share of the global insurance industry, we can punch above our weight if we concentrate on the unique advantages of the Lloyd’s market to empower risk taking, trade and wealth creation,” Tiernan said.

He continued, “Lloyd’s is the ultimate social and mercantile network. The ability of members to underwrite risk is spread by syndication and amplified by our strong balance sheet, credit rating, chain of security and central fund. That reach is extended by the myriad licenses and special regulatory permissions we hold.

“This all means that the total adds up to many times the sum of its parts: no other financial institution can shoulder more risk for each dollar of capital. Lloyd’s doesn’t work despite its idiosyncrasies; it works because of its idiosyncrasies.

“We must, therefore, have the confidence to celebrate what makes us different by focusing on the fundamentals that underpin this organisation. We must raise our gaze from the next quarter to the years ahead by focusing on the enduring trends that are shaping the future.

“And our primary focus – both in terms of time and money – must be on the activities that support sustainable profitability and underwriting discipline through the economic cycle, while deprioritising those activities that don’t.”

Tiernan explained that, as a market, Lloyd’s must remain open to new risks, emerging assets, and expanding frontiers by building an open architecture that enables diverse business models to connect with the market and leverage the network’s multiplier effect, welcoming insurance practitioners from around the world into its ecosystem.

Tiernan added, “We will foster an open and inclusive culture that attracts the best and brightest talent available. Our leaders will uphold the right values and standards. And our colleagues will be empowered to deliver at pace with the freedom to make honest mistakes.

“And because we are stewards in the service of Lloyd’s, we will provide oversight without being overbearing. We will open our ears a lot more and our mouths a little less, remembering that the voice of Lloyd’s carries further when we whisper than when we holler.”

Tiernan concluded, “Throughout its history, Lloyd’s has played a crucial role in the progress of humankind – not by telling people where to go, but by helping them get to the destination of their choice faster while managing the jeopardy they encounter along the way.

“We help solve novel and knotty problems. But we also help others realise their dreams. Together, we will continue this proud legacy, whether it is the next development in quantum computing, manned missions to Mars, or visions not yet dreamt.

“As your new chief executive, I don’t profess to have all the answers. But in the spirit of openness, I will admit this: I have big dreams. And I cannot wait to begin this next chapter with you.”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.