Mike Biggs's charm offensive

So there we have it. After much speculation, Mike Biggs has been unveiled today as the new chairman of Direct Line Group.

Let’s look at what Biggs will bring to the party, warts and all. Those that know him say that as finance director at Aviva, his presentations to analysts were “awe-inspiring”. As one ex-Aviva man told me, he had analysts “eating out the palm of his hand”. So he’s certainly got the charisma to lead Direct Line – we can tick that box.

He’s also enormously experienced and is currently chairman of life insurer Resolution. During his time at Aviva, he was a key player in the merger with CNGU and Norwich Union in 2005.

Perhaps, more importantly, he smoothed the pave for Aviva’s flotation. That will be of huge help to current chief executive Paul Geddes. Geddes has done a good job of turning around Direct Line Group’s performance, but when it comes to leading companies into listings, he’s pretty wet behind the ears.

But it’s not all sunshine and roses, Biggs does carry some baggage. There are those in the City who believe Resolution’s management has creamed off too much at the top, in terms of pay, at the expense of shareholders. That’s aggravated by the fact that there are many who feel Resolution has performed inadequately compared to its peers. Just take a look at its share price, which has been, to put it mildly, less than flattering.

All in all, Biggs will need to use his much-fabled powers of persuasion to bring investors on board for the flotation later this year. Direct Line Group is by no means the worst, but then again it’s far from the best in terms of insurance companies planning to float in the near future.