Winds of change for consolidators

The consolidator landscape continues to change. Yesterday the market learnt of a massive overhaul at Oval, with chief executive Phillip Hodson set to take a new role as non-executive group chairman, and the group chief executive position being filled by his deputy Peter Blanc. Across the divide at rival Giles – a one-time suitor for Oval – it emerged that managing director Sarah Lyons is on her way out.

All this recent transformation begs the question; what’s next on the horizon for these consolidators?

At Oval, a new chapter is unfolding. Hodson, the puppeteer, is taking a back seat and his long-serving wing man Jeff Herdman is out. This leaves the fresh-faced Blanc to set the agenda – and there will be one item that Oval shareholders will no doubt be hoping features very highly. Oval has been the subject of intense takeover speculation for some time. Giles and its backers Charterhouse tried and failed, global broker Marsh is believed to have been sniffing around for a while, along with a host of private equity outfits.

Hodson, though, has remained stubborn throughout and has never publically entertained any deal. Despite Blanc telling Insurance Times today that a sale is out of the question, the new look Oval gives the possibility that some form of deal will happen sooner rather than later renewed hope – at least that will be the hope for a small group of rebel shareholders who have been breathing down the neck of Hodson to cash in for around five years.

The seeds of change at Giles are also being sewn. New chief executive Brendan McManus will have been plotting his strategy since his appointment was announced in December. And just days before he is due to take the hot seat from Chris Giles, who is bound for the chairman’s role, his number two Lyons is moving on. McManus has been keeping his cards close to his chest – but with him in the top spot there is renewed expectation. Who he brings in alongside him will make for particularly interesting reading.