Where now for Willis after Wilkinson blow?

What is going on at Willis? Just when you thought the megabroker was back on an even keel in the UK, it emerges that Willis Retail’s chief executive Dan Wilkinson is to exit to become RSA mid-regions director. Let’s be clear, Wilkinson was highly rated by Willis and his departure will be a blow.

Improved results

At the third quarter, chief executive Joe Plumeri said that there was an impressive 5% growth in international, largely fuelled by the turnaround in the UK and North America. Wilkinson had played a big role in this turnaround. He was an experienced salesman and had ambitious plans to make Willis’s commercial network a much stronger proposition. The positive news is that Wilkinson leaves Willis in much better shape. But still, this morning, many insurers will be asking how they could have lost him.

Yes, he is leaving for a fairly juicy role at RSA, and perhaps he could be groomed to become the next RSA UK chief executive. But his departure from Willis does not send the right signals. He had been at the company for 18 years, had an opportunity in one of the top jobs but decided to leave after a year. It’s all so sudden.

Instability at the top of Willis in the UK

Let’s look at the instability at the top of Willis’s UK operations. International chief executive David Margrett was running Willis Ltd – the group’s UK legal entity – until May 2011. He went on to become international chief executive and was replaced by Brendan McManus.

Then a few months later, in October, McManus leaves for Giles. And, at the same time, Margrett disappears from Willis. Wilkinson takes over a large part of McManus’s responsibilities as retail boss, but little more than a year later, he’s gone as well. It’s like a confusing game of musical chairs.

Aon and Marsh, which have shown consistency and stability in recent years, will be looking at Wilkinson’s departure and licking their lips.

Organic growth mission

The task for Willis now is to make a high-quality appointment and continue the progress set by Wilkinson. Willis probably doesn’t have that much in the tank for acquisitions compared to rivals Aon and Marsh, so it will have to rely on organic growth. Organic growth is anywhere between 2% and 5%, depending on the segment of the business. That is some way off the 7% that Marsh and JLT notched up last year.

Willis positives

At least Willis will have a new incoming boss with fresh ideas post-Plumeri. They also have WillPlace up and running, which offers great opportunity to service their clients better. And despite the ups and downs of the last two years, it is still a company well-regarded by both clients and insurers and hits the heights of excellence in several areas such as aviation and energy.

Willis still has everything to play for. But a bit of consistency in the leadership of its UK business would not go amiss.