JLT hires fomer Aon chair to head new unit

The Financial Risks division of Jardine Lloyd Thompson (JLT) has launched a dedicated Residual Value Insurance (RVI) Centre of Excellence.

Based in London, Stephen Allum will lead the new team to handle RVI business exclusively. Allum was previously the chairman of Aon's Global Marine Practice and during this time, he was responsible for expanding the range of products and services available to clients. RVI took a key role in this process.

Steve Allum, partner, says, “Due to added underwriting capacity and increased demand, RVI is a growing class of business, taking in many areas of asset based finance including aviation, marine, energy and power generation, plant and equipment, factories, commercial real estate, and rolling stock.

"RVI provides the client and their financiers with asset value certainty at a pre-determined time in the future, and is therefore an invaluable means of balancing exposures in volatile markets and removing asset risk from the balance sheet”.

In the current financial environment, a key use of RVI is as a powerful financing tool to help with securing finance or enhancing financial arrangements.

Allum concluded: "By being included in financing deals RVI can provide leverage to help improve overall finance terms. It is also used to deliver financial benefits in the form of balance sheet protection".