Neil Utley faces questioning over his tenure as boss of loss-making Equity Red Star
Hastings Direct executive chairman Neil Utley will face the Lloyd’s of London enforcement board later this month, according to the The Daily Telegraph.
Utley will discuss with the board his tenure as chief executive of Insurance Australia Group UK, which is the parent of loss-making Lloyd’s syndicate Equity Red Star. Utley departed IAG UK in September 2010.
John Josiah, a former senior underwriter at Equity Red Star, and Douglas Morgan, its former UK commercial director, will also appear before the Lloyd’s panel, the Telegraph reports. Lloyd’s could impose a fine on Equity.
In late 2010, the FSA launched a section 166 investigation, or Skilled Persons Report. Under the Financial Services and Markets Act, these require companies to appoint an independent body to conduct a review where the regulator has concerns about corporate governance or system controls.
Lloyd’s has also launched its own investigation into the losses mounted by Equity. IAG UK’s losses for the year ending June 2011 were A$181m (£115m), just over half the A$355m recorded in the previous twelve-month period.
Last month rating agency Fitch said IAG UK’s remedial action – such as cutting back on aggregator business and unprofitable broker books – had been “broadly successful”.
No comments yet