In what was practically a footnote in a press release, Willis has confirmed the departure of its well-regarded chief executive. But why, and where next for McManus?
Buried away at the bottom of a Willis press release yesterday was news that has shocked the UK insurance industry.
”Willis also announced today the departure of Brendan McManus, the CEO of Willis Limited, who until recently had served as CEO of Willis United Kingdom and Ireland.”
There were no best wishes, no farewells, no expressions of gratitude for past performance. It was all rather cold, buried away among the verbosity of the corporate statement, and it left McManus at the mercy of public speculation.
Was it a row with domineering group boss Joe Plumeri? Was it something to do with the FSA fine four months ago? Was it related to performance? Or had McManus simply walked out the door of his volition?
The ‘why’s …
Playing detective for a minute, let’s speculate on what could have happened.
It may have been related to the FSA fine: after all, international boss David Margett left at the same time, which could suggest there was an overarching issue at the top. But then why wait four months?
Also, it is unclear if McManus was connected to the FSA anti-bribery fine. But, even if he was, pushing the boundaries of relationships with clients was something the whole London market indulged in. He would hardly have been a great exception.
As for a disagreement with Plumeri, Insurance Times had speculated in the past that all was not well in the relationship between the flamboyant New Yorker and the down-to-earth Scouser, McManus.
It was a suggestion that had Willis’s communications team frothing at the mouth with fury but, in hindsight, perhaps there was something in it after all.
… and the ‘where’s
Whatever the reason for his departure, McManus has a unique blend of experience in both insurance and broking, having spent 20 years with RSA. He is widely respected across the UK industry and his next step is anyone’s guess.
So what could his options be in the UK? Towergate springs to mind. New boss Mark Hodges needs big figures to fill the void left behind by former chief executive Andy Homer and founder Peter Cullum. They don’t come much bigger than McManus.
The problem is that Micheal Rea has just been appointed retail and financial boss, so where would McManus slot in?
A better fit could be Oval. Chief executive Phillip Hodson is nearing retirement, so a new figurehead is needed. McManus should know what Oval is all about, as the consolidator has been marching in on the turf normally occupied by Willis, Aon and Marsh.
McManus could also be his own boss at Oval, and that may have strong appeal after years of having to answer to his masters in America.
Whatever happens, McManus will surely want to take some time, let the dust settle and work out his options. His Willis story is over, but a new chapter beckons somewhere else.
RFIB’s King abdicates
Talking of big exits, RFIB chief executive Marshall King is also departing.
Is there something in this cold October air that is causing upheaval in our insurance industry?
Towergate shows the strain
Towergate’s first-half results didn’t make good reading. Adjusted EBITDA, the consolidator’s preferred metric, fell 11.9% to £66.7m, compared with the first six months of last year.
What this shows is that the stalling UK economy is putting enormous pressure on brokers, none more so than the consolidators. These next few years will be a real test for the sustainability of the consolidator business model.
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