Lockton Financial Risks A Division of Global Professional & Financial Risks Protecting your balance sheet
About Lockton Lockton is the world s largest privately owned global insurance broker. Our focus is on our clients rather than external shareholders. As a private company, we make long-term decisions that bene it clients and improve service delivery. Our 6,000 associates help 50,000 clients in over 125 countries. Placing over $21 billion of insurance premiums. Clients value Lockton s bespoke solutions, innovative ideas and great service rather than efforts to sell more products. StrategicRISK s 2015 UK Corporate Insurance Buyers Survey (a survey of insurance buyers in FTSE 250 companies) ranked Lockton top of all brokers for client responsiveness. For six consecutive years, Business Insurance magazine has recognised Lockton as a Best Place to Work in Insurance. Our client retention rate of 96% speaks for itself. The Lockton company structure has produced a unique culture where creative, driven and proactive people can thrive, and where client advocacy and service are of paramount importance. We empower our associates to think independently. By looking at our client s business differently, we add value. It is our people that make the biggest difference. That s why we recruit based on attitude and ambition. We look for people who want to make things happen. Who want to be the best in their area. Who are intelligent and insightful. Who are able to forge meaningful and deep relationships. Who enjoy delivering great service. A Global Overview Over 6,000 associates 90% reinvestment due to our private ownership Over $21 billion premiums placed Clients in over 125 countries Over 50,000 clients 80+ offices worldwide Exceptional client retention rate (96%) Over $1.34 billion revenues Over 10% annual organic growth since 2000
Overview Lockton Financial Risks provides our clients with innovative and competitive insurance programmes to help protect the corporate balance sheet and to bring peace of mind to executive boards The global financial community faces a complex set of risks. Some are systemic, some regulatory and others operational. Lockton Financial Risks is here to help you combat these risks. We can help you: Protect the personal assets of your directors, officers and senior managers allowing you to attract the best talent to the boardroom table. Stay ahead of changing regulation across multiple markets and territories allowing you to deploy capital where it s needed to help your business grow. Reduce your liabilities when entering into corporate mergers or acquisitions allowing you to make deals happen and to exit them cleanly. Defend your business and your assets against the growing threat of crime allowing you to protect margins for your shareholders. We work with financial and commercial organisations of all types and sizes, from regional building societies to international banks, from global energy clients to mining companies, from biotech startups to large healthcare companies. Our business is split between retail, wholesale and facultative reinsurance, and we operate everywhere you do.
Broking done differently There was a time when insurance was dominated by inertia. Clients bought the same policies with the same limits year after year, because that s what they d always done. Brokers took their slips to Lloyd s but added little further value, and were seen more as the distribution arm of the insurance industry rather than a partner helping businesses grow. At Lockton, we never believed this was enough. That s why we do broking differently. We re your agent It s our job to listen to you, to understand your exposure and to recommend strategies for dealing with your risks. Many conversations end with us recommending that you retain or move a risk rather than insure it. However, where an insurance product can truly enhance or protect your company, then we create unique solutions. We re your advocate If your risk can be insured, we ll persuade underwriters that it s a risk worth taking. We ll negotiate hard on your behalf. And if there are any issues with your insurers when it s time to renew or make a claim, we ll step in to resolve them. We work alongside you We re more than just your insurance broker. We re your partner, protecting your balance sheet and creating value for your business. Together, we re a strong team. That s why each of us joined Lockton to put clients first This is our promise: your interests will always come before our stakeholders and before those of insurers. This promise affects everything from the strategies we recommend to the way we re structured. We don t have swathes of middle management who add to costs but not the value. Even our most senior people serve clients. That s why we retain 96% of our clients each year.
We re more than your insurance broker we re a source of specialist knowledge and advice Everything starts with understanding your exposures where they are, what they are, and how they could threaten your business. We ll spend time with your risk managers and their operational colleagues across your business, uncovering your risks and formulating a strategy for dealing with each one. The better we understand what s driving your decision-making, the more informed the advice we give. We give every conversation the time it needs we believe it s the only way to get to the core of what concerns you. We know the difference good advice can make to your business, and we ll invest what it takes to get there. It s not about the product, it s about what it lets you do we know that insurance is just a means to an end. Whether you re using a policy for capital relief, to give comfort to your investors or to reassure a buyer in a corporate transaction, we ll look beyond the product detail and help you understand the bigger commercial picture. We re structured in a way that works for you, not the insurance market our team is full of insurance experts, who bring in-depth knowledge of every relevant financial line of insurance. But we combine this with sector specialism too people with real-world experience in all aspects of the financial and commercial industries that we represent. Our team includes lawyers, ex-underwriters and risk managers. A flat structure with short reporting lines allows everyone to work together. You get one point of contact who rallies the rest of the team, giving you access to the best of our combined experience. We take an entrepreneurial approach to your business every business and every risk is different. Each poses its own challenges, so we don t stick to a formula. We ve built a reputation for original thinking and creative ideas that our clients really value. Risks and regulations are constantly changing so we keep moving too every year, we ll revisit your exposures and how they ve changed. We ll test our recommendations, to ensure they re still fit for purpose. And we ll keep enhancing every policy when necessary to make sure it s compliant and competitive. We stick to what we do well - we ll only recommend someone or something if we have total confidence in their reputation and ability to deliver. It s what we call Broking done differently.
CASE STUDIES: Resurrecting a collapsed deal When negotiations between a property fund and an insolvent company collapsed because of a large potential tax liability, we found a way to resurrect the deal. We discovered the company s bank might be prepared to contribute towards the buyer s liability. We told our client that if the bank s contribution reached a certain limit, the rest of the liability would be insurable. Three insurers had rejected our client before we became involved now the same three competed for their business. Overturning an insurer s decision When an investor pointed the finger at our client, they notified their insurer as part of the process. They d followed the correct procedure, but were surprised to find their insurer accusing them of non-disclosure and threatening to rescind their cover. Realising the insurer had made its decision based on a partial understanding of the facts, we stepped in to resolve the situation. We helped establish a clearer picture of what had happened and showed that our client had represented their risks fairly. Thanks to our intervention, the insurer overturned its earlier decision.
Our 25-plus products fall into these five categories We ll talk you through these once we understand your circumstances. You ll likely need a specific product at certain times, depending on the risks you face. Management liability Directors and officers liability Side A difference in conditions (DIC) Global directors and officers programmes Public offering of securities insurance (POSI) Employment practices liability and wage and hour Pension trustees liability Professional liability Professional liability/ indemnity (E&O) Trustee liability Cyber liability Internal and external crime Commercial crime Financial institutions crime Unauthorised trading Plastic card fraud Mortgage bankers and brokers products Mortgage warehouse bonding Transactional products Mergers and acquisitions due diligence Warranty and indemnity Tax indemnity Residual contingency liability Litigation buyout insurance Mortgage indemnity insurance Capital risk solutions Structured risk transfer solutions Financial specie Excess securities Safe deposit box Excess SIPC and CIPF Securities signature waiver Securities industry products Contingent armoured car
Your Lockton team Stephen Ambidge Partner, Lockton Companies LLP, Global Professional & Financial Risks Stephen specialises in design, placement and service delivery for global financial services companies. He focuses on financial lines products for a wide range of financial sector clients. He s a Chartered Insurance Practitioner and a member of the Professional Liability Underwriting Society. Stephen has over 36 years experience in the industry. Stephen.Ambidge@uk.lockton.com Calvin Barnes Senior Vice President, Global Professional & Financial Risks Calvin designs programmes for financial and commercial institutions and specialises in the private equity, venture capital, hedge fund and energy industries. Calvin has been in the industry for 20 years and has been instrumental in designing solutions for unique client exposures, including portfolio company aggregation and investment-structured programmes. Calvin.Barnes@uk.lockton.com Neo Combarro Partner, Lockton Companies LLP, Global Professional & Financial Risks Neo draws on 18 years transactional and financial services expertise when tailoring insurance to his clients needs. He advises on transactional and contingent insurance, professional lines insurance, and structured and alternative risk transfer solutions. His experience includes designing large soft capital solutions for financial institutions and using the global markets in North America, Bermuda, Europe and Asia. Neo.Combarro@uk.lockton.com Allison Hollern Partner, Lockton Companies LLP, Global Professional & Financial Risks Allison advises multinational companies on the design and placing of insurance programmes for their financial risks insurance needs. She develops bespoke insurance for company directors and officers, employment practices, partnership liability and structured financial risk protection, to mitigate balance sheet liability. She s also written industryleading insurance policies for Lockton clients, especially those with significant US exposure. Allison has been in the industry for 17 years and is our London-based US Lockton Financial Services business co-ordinator. Allison.Hollern@uk.lockton.com
John Howe Partner, Lockton Companies LLP, Global Professional & Financial Risks John designs and manages complex global insurance programmes for US mutual funds and major global financial institutions. He specialises in financial specie, management liability and bankers blanket bond/crime insurance. John draws on more than 35 years experience in the industry. John.Howe@uk.lockton.com Henry Keville Senior Vice President, Global Professional & Financial Risks Henry leads our award-winning asset management team. He develops bespoke management liability products and designs and structures complex FI programmes for clients around the world. Henry has 15 years financial lines experience, which includes managing the asset management division at his previous employer. Henry.Keville@uk.lockton.com Michael Lea Senior Vice President, Global Professional & Financial Risks Mike has 27 years experience in financial lines. He focuses on advising clients on crime products, pension trustee liability, employment practices and directors and officers liability insurance. He advises on securities class action and regulatory investigations claims. He also speaks on D&O liability and runs educational sessions for clients and insurance professionals alike. Before joining Lockton, Mike led management liability practices at two global broking firms. Michael.Lea@uk.lockton.com David Sampson Senior Vice President, Global Professional & Financial Risks David has more than 35 years experience in the insurance and reinsurance industry. He designs, places and manages large, structured programmes for financial institutions. He has also developed captive insurance programmes and excess insurance placements for major corporations, as well as advised and represented global organisations on their risk management, risk transfer and traditional insurance and reinsurance needs. David.Sampson@uk.lockton.com
Our mission To be the worldwide value and service leader in insurance brokerage, risk management, employee benefits and retirement services Our goal To be the best place to do business and to work Lockton Companies LLP. Authorised and regulated by the Financial Conduct Authority. A Lloyd s broker. Registered in England & Wales at The St Botolph Building, 138 Houndsditch, London, EC3A 7AG. Company No. OC353198. www.lockton.com