Money or ambition - we ask why Hodges really left Aviva

Was it the money or was it plain old ambition, or perhaps even a bit of both? That’s the question a badly bruised Aviva board, who last month lost UK life and pensions chief executive Toby Strauss to Lloyds Bank, will be asking itself today after losing yet another one of its star players.

Charming, charismatic and brilliant with numbers, Hodges was highly valued by Aviva.

He showed his worth by repairing bridges following former chief executive Igal Mayer’s failed attempts to slash commissions with the consolidators.

Hodges did an admirable job helping Aviva gain back some of the lost £1bn in premium, but just 18 months later, he’s out the door.

Never the bride

Only Hodges and those who are close to him will know why he left. But one possible reason could be that Hodges was fed up, knowing he was never going to get the top job when group chief executive Andrew Moss finally departs.

Chief financial officer Pat Regan is seen as the prince in waiting, ready to take over the helm from Moss.

Added to this, Hodges has seen his peers move onto bigger and brighter things.

Mike Biggs, formerly Aviva group finance director, is now chief executive of insurance acquisitions’ vehicle Resolution. When it finally floats, he’ll be one of the UK’s richest people.

One source said: “Okay, Hodges was on £1.5m a year, or whatever it is, but when you look at people like Biggs, he’s not in that bracket of earning around £50m to £100m.”

Hodges could earn anywhere between £10 and £20m from the Towergate flotation. A successful flotation would also raise his profile considerably, and he could earn even more leading another big financial company through flotation if he ever decided to quit Towergate.

Itchy feet

But to think Hodges is all about money would be wrong. Hodges has been at Aviva for 20 years and could have fancied a change. Hodges is friends with Towergate chief executive Andy Homer and founder Peter Cullum and, through Aviva, knows the broking side of the business well having cleaned up Mayer’s mess.

Hodges is also a seasoned head when it comes to insurance, which will be a huge plus in getting to grips with Towergate Underwriting. His remit now will be to guide Towergate though the initial public offering by turning it from an entrepreneurial outfit into a corporate company palatable for investors.

The source said: “He’s incredibly good at what he does, and very ambitious. I think he’s at that point in his career when he would have fancied a change. Good for him, I say.”

Towergate’s triumph

Hodges’ appointment, hot on the heels of Admiral’s Alastair Lyons joining as chairman, is a huge coup for the consolidator, now on a much firmer financial footing with Advent’s £200m investment.

Cullum and Homer deserve credit for transforming the business since Amanda Blanc’s shock departure to AXA last year.

Money, power, ambition – it was probably a cocktail of all three that drove a fed-up Hodges into the arms of Towergate. And it's Towergate that is surely the real winner in all of this.