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Lloyd’s of London has hired lawyers to investigate potential failings in its governance around the appointment of an executive under its previous boss, John Neal.
The insurance market said on Wednesday that an earlier independent review commissioned by its chair, Sir Charles Roxburgh, had found that “our internal processes had not been fully adhered to in respect of a prior matter”.
The investigation followed concerns raised within the insurance market over the appointment process for a position on its executive committee in 2023, people familiar with the matter told the Financial Times.
Executives within the market had queried whether the appointment had gone through a competitive process, according to people familiar with the matter, who said that then-chief executive Neal had a close personal relationship with the woman who was appointed to the role.
Lloyd’s said the first probe had been launched after Roxburgh joined in May and he “became aware of market speculation concerning possible historic breaches of policy”.
It did not give details of what that independent review had probed, saying that it had been intended to ensure Lloyd’s “processes were robust and fully aligned with regulatory expectations”.
However, Lloyd’s said on Wednesday that it had now launched a fresh investigation following the emergence of “new information” in recent days.
It came after insurer AIG said in an SEC filing last week that Neal, who announced his departure from Lloyd’s in January, would no longer be joining as president of the US group — ditching an appointment it had previously announced.
Neal had been due to join AIG next month but the insurer said this would no longer happen “due to personal circumstances”.
Neal, who led Lloyd’s for six years, did not respond to a request for comment.
Before joining Lloyd’s, Neal had been chief executive of Australian insurer QBE, where he had his bonus cut over his failure to disclose a personal relationship with his executive assistant.
The scrutiny of Lloyd’s governance follows years of efforts, including under Neal, to professionalise the insurance marketplace and improve its working culture, including stamping out sexism and high levels of alcohol consumption.
In its statement on Wednesday, Lloyd’s added that after becoming chair Roxburgh had launched a separate review of the governance structure of the Lloyd’s Council, the body that oversees the running of the organisation.
It said it would shortly announce a “revised framework” that would “enhance strategic oversight and ensure alignment with statutory responsibilities”.