QBE mid-ranks’ ‘irritation’ as Pryce gets deputy job

There is certain to be discontent among some of QBE’s middle management team who were overlooked for the deputy’s job at the insurer.

That is according to market participants, who believe that QBE has proved it is serious about taking over a significant chunk of the market with the appointment of ACE UK president Richard Pryce as deputy chief executive of QBE European Operations.

And, despite describing Pryce’s departure as a big loss to ACE, they believe newly promoted Pat Drinan will be a boost for the company.

Bluefin chief executive Stuart Reid said there would undoubtedly be some “irritation and frustration” from those managers who thought they were in line for the deputy’s job at QBE, but it was up to the management team to placate them.

He said a trimming of the workforce was inevitable given QBE’s acquisition of Brit UK, and it was usually middle management that suffered. “There are a lot of changes around the market and this won’t be the end of it.”

‘A class act’

Drinan, formerly ACE director of corporate risks, UK and Ireland, has stepped up to the role of regional senior vice-president of accident and health for Europe, the Middle East and Africa. He will also be responsible for ACE’s life insurance operations in the region.
David Robinson has taken over from Pryce, reporting to chairman of ACE European Group, Andrew Kendrick.

“I think Pat is a class act,” Bluefin’s chief executive Stuart Reid said. “Pat is very well respected in the market, so that would be good internally for ACE.

“Richard is a bit of a loss for ACE, but it does prove that QBE are very serious about their intent on taking over a significant chunk of the market.”

But Reid warned that, following the Brit UK acquisition earlier this month, QBE needed to be careful not to alienate those that did business with each company.

“They have to ensure that they don’t alienate some of the friends that each of the businesses themselves have made,” he said. “In a lot of cases people were either big fans of QBE or Brit, but not necessarily both, and I think trying to hold onto both while making very tough decisions is going to be a big ask for QBE.”

In QBE’s level of management below Pryce are chief underwriting officer for property and casualty Ash Bathia, marine chief underwriting officer Colin O’Farrell, motor managing director Matthew Crane and reinsurance chief underwriting officer Jonathan Parry.

Goodwill is crucial

QBE’s acquisition of Brit is expected to fulfil the insurer’s ambitions to become a top-five property player. The deal for Brit’s regional renewal rights will give QBE a 5% market share of UK regional business.

Under the new management structure, Brit UK’s chief executive, Ray Cox, and QBE’s head of UK national, Elliot Miller, will lead
the integration of the Brit and QBE regional UK operations and locations.

QBE has also taken about 130 staff from Brit from eight locations across the UK, not including back-office staff such as claims handlers. Jelf chief executive Alex Alway said: “Clearly Ash is formulating a formidable team [at QBE] and I think it shows a real determination to invest in the management structure to capture the mood on the back of the Brit acquisition.”

Alway said there would be a “keen sense of anticipation” to make sure the management restructuring at QBE was sorted out quickly. “The asset they have bought is Brit and its relationships, and the last thing they want to do is dismantle that and lose the goodwill they have acquired,” he said.

In terms of ACE, Alway said anything that strengthened the management team had to be viewed as a positive, but added that the company still had more work to do in the regions.