Insights – RKH Speciality News

January 5, 2021January 5, 2021

Hard Times: How a pandemic, record low yields, and climate-driven CAT losses have changed the (re)insurance market

We are proud to share Hard Times, an expansive report on the insurance and reinsurance market and 1 January 2021 renewals.

Lower investment yields, higher loss cost trends, another above-average loss year, concerns over climate change and general risk aversion have coalesced to bring about some of the sharpest price changes in recent memory. Rates accelerated across most commercial lines in 2020, despite businesses facing significant, even existential, financial pressures due to COVID-19.

Balance sheets remain generally strong, with the sector continuing to attract substantial new investment capital. Confronted with this backdrop, reinsurers were mostly disciplined and discerning at 1 January 2021 reinsurance renewals, portending similar discipline in the near-term.

Our report offers a detailed retrospective and forward-looking analysis on a period of transformational change (and challenge) for clients and markets alike, as well as providing detailed insights into renewals.

Key findings on reinsurance renewals include:

Howden’s Global Risk-Adjusted Property-Catastrophe Rate-on-Line Index rose by 6% at 1 January 2021. This was higher than the flat outcome of 2020, and the biggest year-over-year increase in over a decade. COVID-19 loss experience, along with yet another hyperactive natural catastrophe year, were key inflating drivers.
Programmes in North America led the charge at 1 January 2021, with an average rate-on-line increase of 8.5%. Pricing pressure was more subdued outside the United States.
A significant turning point was reached in Europe: the almost habitual experience of flat-to-down renewals relented in 2021, with rate rises in the low-to-mid-single digit range.
Another year of constrained capacity in the retrocession market saw Howden’s Risk-Adjusted Nonmarine Retrocession Catastrophe Rate-on-Line Index rise by 13%. Four consecutive years of price increases have seen the cost of retrocession protection return to levels last recorded in 2012/13.
Casualty reinsurance rates-on-line, including adjustments for exposure changes and ceding commissions, rose by 6% on average at 1 January 2021.
Rising rates on underlying business, especially in the U.S., mitigated pressure on ceding commissions somewhat, although outcomes varied depending on book performance. Reinsurers were resolute in pursuing higher pricing for excess-of-loss programmes, although there was again some degree of differentiation to account for portfolio characteristics and profitability.

David Flandro, Managing Director, HX Analytics comments: “A multitude of factors informed this year’s (re)insurance renewals. Despite the asset shock that occurred immediately post-lockdown and full-year underwriting losses of USD 100 billion or more, capitalisation has proved resilient. Incumbents and new players raised close to USD 20 billion of capital in 2020 for all purposes, with more to come this year. This is therefore not a universally dislocated market; differentiated risk management strategies and advice can still unlock access to capacity, even if the landscape has undeniably become more challenging.”

2020 was historic by any measure. The lives of billions of people have been redefined by COVID-19, a global health crisis that brought with it shutdowns, financial market turbulence, economic dislocation and civil unrest. The pandemic is a reminder that certain perils do not conform to long-held assumptions around correlations, boundaries and duration.

The manifestation of systemic risks emerged elsewhere too. The effects of climate change were again in focus, as the frequency of extreme weather events pushed the boundaries of historical precedent. The increasingly complex risk landscape has exacerbated risk aversion in the insurance and reinsurance market, with carriers’ appetites responding accordingly.

José Manuel González, CEO, Howden Broking Group said: “Whilst the pricing environment may be supportive for carriers in 2021, this should not translate into a degree of risk aversion where underwriters accept rate but shy away from new risks or new business. The global risk landscape is changing like never before. Carriers and brokers have always served clients best by learning from shock events and 2020 is surely a year rich in its lessons. There is much to draw from: COVID-19 has brought the growing ‘intangibility’ of risk into focus, a trend that is only going to accelerate as new technologies continue to redefine risk characteristics. Irrespective of what happens to the market cycle in 2021, the (re)insurance market must seize the opportunity and focus on doing what it has done so well several times over; innovate and develop creative solutions for the changing needs of our clients.”

Looking ahead to 2021, hopes rest firmly on a successful vaccine rollout to limit the already considerable economic damage. The resumption of economic growth must be facilitated and supported through better risk transfer solutions.

COVID losses: The difference in COVID-19 loss projections is considerable, ranging from something approaching the largest loss ever for the private (re)insurance market to an event more akin to a moderate hurricane loss. Which scenario most accurately depicts reality will become clearer this year. Whilst capacity and risk appetite will be shaped by the answer, (re)insurers are strongly positioned to trade through and, whatever the outcome, will benefit as COVID-19 uncertainty recedes.

Market cycle: The duration of market discipline, and whether buyers can expect a prolonged period of price rises will be among the most contested topics of 2021. Whilst the catalysts for market hardening appear structural rather than cyclical, the insurance sector overall confronts these challenges from a position of strength.

Capital: Howden’s estimate of global insurance capital reached record levels in 2020, and is expected to remain broadly stable this year and next when it should support strong premium
growth. The sector is also attracting substantial amounts of new capital, comparable to levels generated in 2001 and 2005, with more expected to come this year.

Profitability: Despite serious headwinds, most carriers remained profitable in 2020, with the HX insurance composite reporting USD 10 billion of net income in the first nine months of
the year.

November 2, 2020November 19, 2020

Cargo policy implications for the MV Nave Andromeda hijacking

The MV Nave Andromeda is a 9-year old, Liberian flagged Crude Oil tanker capable of carrying approximately 500.000 barrels of crude oil. On her way from Lagos Nigeria to Southampton, UK, a number of stowaways threatened her crew and hijacked the vessel as it was off the coast of the Isle of Wight. After a 24hrs standoff the crisis was resolved on Sunday night when Special Forces intervened and arrested the hijackers.

Whilst details are still somewhat scarce and a number of specific questions remain unanswered in this case (did the crew retain operational control of the vessel at all times, what was the amount of cargo on board still being carried etc.) and with the immediate crisis having passed, it makes interesting speculation what an alternative scenario could have been and how such a situation would interact with typical marine cargo insurance covers.

Even though purely conjecture, in this note we briefly examine the possible impact thereof and highlight a number of considerations in case a more sinister turn of event would have played out.

Our insights are focused on a number of relevant clauses typically features in cargo covers, with an additional emphasis on oil-related products.

1. Piracy

Under international law piracy is defined as any illegal act involving robbery, violence or detention for private ends of a ship and committed on the high seas
In modern times, piracy most often involves a demand for ransom payments, instead of merely hijacking cargoes.
Under the most commonly used Institute Cargo Clauses A (ICCA), ‘All Risks’, coverage is provided against loss or damage of cargo resulting from piracy. Interestingly however, piracy is not listed in the area of coverage of Institute Cargo Clauses B and C (ICC (B)/ ICC(C)).
Also noteworthy is that cargoes will need to be physically lost, stolen or damaged for cargo covers to respond under this section, instead of merely hijacked

2. Terrorism

If a similar incident would have been caused by parties acting with very different intent, there could be cause for a terrorism trigger under the policy, albeit not under the standard ICC (A) provisions:

ICC (A) ordinarily does not cover risks of terrorism for goods afloat when such acts are committed by anyone acting from a political, ideological or religious motive, or connected to any organisation which carries out activities aimed at overthrowing or influencing any government, by force or violence.
For these perils to be insured against however, one will need to ensure additional protection is afforded by means of the so-called Institute Strikes Clauses (Cargo)
This extension is usually provided for under most cargo cover, and is also to be read in conjunction with the provisions of the ‘Termination of Transit Cover (Terrorism), which limits the duration of such terrorism protection.

3. General Average

In past cases involving pirates not hijacking so much the goods on board but instead merely holding the ship, its cargo and its crew as hostages for ransom, shipping companies have resorted to General Average provisions under cargo policies to seek remedies from their insurers.
In such instances, reimbursement of the ransom monies paid to hijackers for release of the shipping interest was recouped from all parties concerned, including cargo owners, in the shape of GA contributions claimed by Ship Owners.

4. Non-delivery/ Abandonment

Seizure of good does not automatically render a cargo an actual total loss as long as there is no irretrievable deprivation: vessel and cargo will likely be fully recovered once the ransom monies have been paid.
In exceptional circumstances however, some cargo covers can contain specific provisions for non-delivery or missing cargoes which could result in settlement for actual or constructive total loss.
Non-delivery entitles a cargo owner to claim for the value of the goods after a certain period of time, as if the goods have effectively been considered lost once a pre-determined period of time has been exhausted.
Similarly, some cargo policies will give the assured the right to ‘abandon’ goods to insurers, who would be compelled to settle the loss in full once a number of specific conditions have been met.
It is important to stress that such policy provisions are invariably highly bespoke, time-limited and very conditional. The abandonment provisions most typically also contain piracy-specific exclusions.

5. Oil Pollution

In the case of the Nave Andromeda, the nature of the cargo on board justifies shedding some light on pollution coverage components under a standard marine cargo cover:

Costs of removal and/or destruction of damaged cargoes following an order from a Public Authority can be covered under cargo covers
Clean-up expenses and debris-removal are also expenses recoverable under most cargo cover , usually subject to certain insured limits
Expenses reasonably incurred to preserve cargo and minimise losses fall under the so-called ‘sue and labour’ provisions which can generally be recovered

6. Other insurance

Hijacking situations involving ships at sea will typically involve other types of insurance in addition to marine cargo only, including but not limited to :

Hull & Machinery War covers, designed to protect Ship Owners interests
Charterer’s liability covers designed to protect charterer’s responsibilities viz Ship Owners
Kidnap & Ransom covers: includes ransom payment an expenses related to arrange a vessel’s release

For more information, please contact Jonathan Eaton, Head of Cargo and Stock Throughput.

Disclaimer:

It is stressed that every situation will be different and that this briefing note only seeks to provide general advice and may not be applicable to your specific case, insurance policy or circumstances, as the case may be.

November 13, 2019November 18, 2019

The state of the product recall market – a London perspective

The product recall market is in a state of flux and for brokers, insurers and clients alike, there is uncertainty about the future. Rob Marshall, head of our Product Recall team, sums up the current state of the product recall market, examining the causes and consequences of market fluctuations.

The product recall market in brief

The rise of domestic markets in the US entering the class appears to have plateaued, with soft rates, widening coverage and severity of claims all taking their toll. The wider casualty space is suffering with widespread reports of Insurer losses, putting pressure on Recall underwriters to increase rates in line with their casualty counterparts. We are seeing a number of non-renewals from US Insurers, causing headaches for agents to find suitable alternatives for distressed clients. One consequence is the inflation of self-insured retentions by insurers in many areas, more akin to the catastrophic class of insurance it was intended to be.

What is causing this volatility?

US food companies still account for the majority of buyers in the recall market, although rates are going up in this sector more than in any other segment. FDA pressure, rapid improvements in testing procedures and brand damage in the media have caused an increase in both frequency and severity in claims activity.

How are insurers responding to these challenges?

The most successful recall insurers appear to be those who have diversified their portfolios from solely writing US food clients, in order to balance their books. We are now seeing London underwriters actively seeking out alternative industries including automotive, aviation, cosmetics, medical devices, and the technology sector to name a few.

Line sizes are shrinking, with many insurers preferring the quota-share model, the benefits being one seamless policy and a single point of contact for claims handling. This can result in the need for extra markets on a renewal or layer(s), making a spread of relationships with different Insurers crucial at this time in the market cycle. This coincides with buyers becoming more educated and comfortable with the various recall product(s) and opting for higher limits for true balance sheet protection.

Insurers are also looking to diversify their geographical spread of risk. Clients worldwide are becoming more aware of the recall products and their huge benefits in the event of a crisis and more countries are now exploring these insurance solutions. RKH have had recent success placing business from Europe, Australasia, South America and the UK, with further interest coming from Africa, South East Asia and Scandinavia to name a few. The majority of buyers are still from North America, however this is changing just like the market is.

Positive outlook for the London market

London is seeing new capacity enter for the first time in a few years. HDI Global Specialty began writing recall in September with recall veteran David Palmer at the helm, and the market has already seen the impact of a new hungry entrant with a huge balance sheet attempting to obtain market share – their minimum sales threshold of USD 100m+ underlines the space in which they are looking to compete. Another new entrant in November is Perigon, an MGA backed by Bermudan insurer Fidellis, and led by the experienced Ian Bailey who joins from Hiscox. This will again present opportunities for new and existing buyers to explore options previously unavailable to them.

What will the next 12 months look like?

The US casualty market looks like it is in for a tough period over the next 12 months and beyond, with premiums going up. The London marketplace is primed and ready to assist those clients who are unhappy with their renewal pricing, or who are looking for a fresh solution to their product recall needs.

For further details, please get in touch with the Product Recall team.

January 11, 2018August 22, 2018

Hyperion Insurance Group 2017 Full Year Results

FINANCIAL HIGHLIGHTS

Financial performance reflects continued positive momentum driven by significant ongoing investment in people, operations and technology, and despite challenging market conditions.

On a bank reported basis:

Revenue grew from £444m in 2016 to £535m in 2017, an increase of 20%.
EBITDA, the Group’s preferred measure of profitability, increased by 24% from £123m to £152m in 2017.
The EBITDA margin was 28% in 2017 (28% in 2016).
Organic revenue growth was 8% (2016: 8%), which the Board regards as a strong result in a highly competitive operating environment.

OPERATIONAL HIGHLIGHTS

In 2017 Hyperion launched Howden One, its international retail broking network, enabling the Group to provide global solutions for its retail clients. This network brings together Howden’s own offices and those of trusted, like-minded partner brokers, and spans 75 territories with over 5,000 insurance professionals who operate under one set of standards.

RKH built out its international infrastructure to deliver specialty expertise and product knowledge from the world’s key insurance markets and provide world-class solutions to its international clients. As part of this reorganisation, marine broking specialist, FP Marine, and wholesale broker, Howden Miami, have transferred into RKH Specialty.

DUAL’s regional management board, formed at the beginning of the financial year, has brought the management of each regional business closer to their carriers, brokers and clients. Increased investment in DUAL’s operational resilience and scalability has also created a strong platform for future growth.

Strategic expansion

Hyperion continues to seek strategic partnerships, to make acquisitions, and to launch operations where likeminded businesses and people bring specialist expertise to the Group, deliver geographic reach in key territories, and make a positive difference to clients.

In addition to increasing its shareholding in a number of partly-owned subsidiaries, the Group made a series of focused acquisitions and launched new operations strengthening its product and distribution capabilities both geographically and in terms of specialist market positions.

In July 2017 the Group expanded its Iberoamerican operations with the acquisition of automotive, ports and logistics specialist Bergé y Asociados Correduría de Seguros in Spain, bringing niche expertise across Howden’s Spanish and Portuguese speaking markets.
In July 2017 the Group expanded its retail broking operations in Asia with the acquisition of Singapore-headquartered Sterling Knight, strengthening existing specie capabilities and combining employee benefits businesses to create a strong proposition in the region.
In August 2017 the Group expanded its retail broking operations in the United Arab Emirates with the launch of Howden Abu Dhabi.

In addition to the acquisitions that took place during the 2017 financial year, in November 2017 Hyperion acquired a majority stake in Omani broker New Generation Insurance Services LLC and, in December 2017, Howden signed an agreement to acquire a majority interest in top five Mexican broker, Grupo Ordás.

David Howden, Chief Executive Officer, commented: “2017 was another milestone year for us as we passed the £500m revenue mark and launched our international retail broking network, Howden One. The impressive results delivered by each of our businesses contributed to the Group once again achieving market-leading organic growth and a strong profit margin, both critical factors in our long-term success.

Our employee-ownership model continues to attract and retain talented individuals, and to sustain the entrepreneurial culture, that make our group unique. Following the completion of our fourth employee share offer, more than 20% of employees now own shares in Hyperion and its subsidiaries.

The value of our business was reinforced by our ability to attract another leading investment partner in Caisse de dépôt et placement du Québec (CDPQ). CDPQ’s investment, and additional funds from our debt refinancing, will provide us with significant additional capital to fund future growth.

In an ever-changing market, we recognise that we must be at the forefront of innovation using data and technology to enable the efficient and effective distribution of the right products to our clients at the right price. Our investment in technology-led initiatives will be a key focus in the coming year.”

Dominic Collins, Chairman, said: “The combined efforts of all of our businesses have resulted in another year of strong financial performance. I extend my sincere thanks to each of the 3,800 employees involved in this achievement.

We enter 2018 with a new high-quality, long-term investor in CDPQ to join us, alongside General Atlantic, on our next phase of growth.”

January 11, 2017August 22, 2018

Hyperion 2016 Full Year Results

FINANCIAL HIGHLIGHTS

Financial performance reflects continued momentum despite challenging market conditions and with ongoing investment in people, operations and technology.

Revenue increased by 45% to £434m from £299m in 2015.
EBITDA, the Group’s preferred measure of profitability, increased 82% to £103m from £57m in 2015.
The EBITDA margin increased to 24% (2015: 19%) with significant investment in people, operations and systems balanced with strong cost control.
The Group delivered underlying organic revenue growth of 8% (2015: 5%).

Acquisition structure, financing and non-recurring items
As anticipated the structure, integration and related financing profile of the acquisition of RKH Holdings Limited (RKH), completed in April 2015, and other transactions continue to be reflected in the Group’s income statement in accordance with IFRS accounting requirements.

As a result, the Group will report an IFRS accounting loss of £38m for 2016. The accounting loss under IFRS specifically reflects:

£76m (2015: £30m) in respect of the deferred consideration payable to RKH employee shareholders.
£38m (2015: £23m) for depreciation and amortisation.
£37m (2015: £23m) of loan interest and similar items.
£26m (2015: nil) gain in fair value change for movement in liquidity put option.

OPERATIONAL HIGHLIGHTS

12 month period of focused integration and consolidation to deliver robust and resilient structure and operations and a platform for a differentiated global offering,

Strong progress made on operational integration in the UK, including rationalisation of London locations, embedding of business-specific support services and systems integration.
From 1 October 2016, the Group fully aligned its management structure to three pillars: Howden, being retail broking; RKH Group, being specialty and reinsurance broking; and DUAL, the Group’s MGA operations.
Core support services delivered through a single consolidated service company, Hyperion Services, from 1 October 2016.

Building a platform for talent
With restructuring undertaken to ensure a flat and empowered management structure in all Group operations, to deliver appropriate support services, and to protect Hyperion’s entrepreneurial culture, the enlarged Group continues to attract talented individuals. This is evidenced in the appointment, during the year, of a number of well-regarded, senior market experts, as well as experienced and respected practitioners from outside of the industry.

Those joining the Group in the 12 month period to 30 September 2016 include:

Lyn Grobler as Chief Information Officer, Hyperion.
Goh Chye Huat as Chief Executive Officer, South East Asia, Howden.
Richard Clapham as Chief Executive Officer, Europe, DUAL.
Stephen Manning as Chief Operating Officer, DUAL.
Mark Hudson as Chief Financial Officer, DUAL.

The Group’s commitment to broad employee ownership saw the launch of a D and E share programme and the completion of its third employee share offer. More than 20% of Group employees now own shares in Hyperion and its subsidiaries.

Selective strategic acquisitions and start-ups
Hyperion continues to seek strategic partnerships, to make acquisitions, and to launch operations where likeminded businesses and people will bring specialist expertise to the Group, give geographic reach in key territories, and make a difference to clients.

In December 2015 the Group acquired 75% of Chelsea Risk Management Inc., a marine insurance agency based in San Francisco which specialises in coverage for ports, terminals and logistics operators, bringing Marine capability to DUAL’s US operations.
In March 2016 the Group acquired 100% of PMG Financial Services Limited, the UK’s largest independent specialist surety broker, positioning itself to become a leading participant in the surety market.
In April 2016 the Group expanded its Iberoamerican retail broking operations with the launch of Howden Portugal.
In September 2016 the Group completed the acquisition of a majority stake in Euroassekuranz Versicherungsmakler AG, Germany’s leading independent retail insurance broker to mid-market clients, forming a strategic partnership connecting the niche specialisms of Howden in Germany — Financial Lines and Marine — with those of Euroassekuranz — Industrial, Commercial and Real Estate.

David Howden, Chief Executive Officer, commented:

“The effort to shape, support and position the significantly larger Hyperion Group for the future has been a key focus for the Group in 2016. We are now structured, with our three arms of Howden, RKH and DUAL, to harness the expertise and agility of the Group to deliver the best for our clients, partners, employees and shareholders, and to take Hyperion to the next level.

Against the backdrop of political events of the last six months, the value of the natural hedge provided by our balanced model and geographic and product diversification is clearer than ever.

We are well positioned in the face of external factors and our differentiated platform and employee-ownership model make Hyperion a unique place to work. I am delighted that we continue to attract some of the brightest talent from inside and outside the industry.

I have long said that it is the quality of our people that make this Group stand out — they are the ones who deliver the organic growth that is the foundation of the business — and I am delighted that we are now the eighth largest employee-owned company in the UK with more than 700 employee shareholders in the Group and its subsidiaries.”

Dominic Collins, Chairman, said:

“Integrating the Hyperion and RKH Groups quickly and efficiently to allow our businesses to continue to deliver growth and profitability has been critical. I am pleased that the significant efforts of those involved have allowed the Group to deliver a strong underlying performance whilst we continue to invest in the platform for the future, and my thanks go to all our employees for their efforts.”

January 13, 2016August 22, 2018

Hyperion 2015 Full Year Results

FINANCIAL HIGHLIGHTS

Underlying performance reflects the Group’s transformational year and demonstrates a strong result in the face of industry and global economic headwinds.

Revenue increased by 50% to £299.0m from £199.0m in 2014.
The Group’s principal measure of profitability, EBITDA, increased 31% to £56.7m from £43.2m in 2014.
EBITDA margin decreased to 19%, primarily reflecting continuing investment in start-up businesses (2014: 22%).
The Group delivered underlying organic revenue growth of 5% (2014: 7%).

Transaction, financing charges and non-recurring expenses

The structure, integration and related financing profile of the acquisition of RKH Holdings Limited (RKH) and other transactions are reflected in the Group’s 2015 income statement. Specifically, the majority of the deferred consideration payable to RKH employee shareholders will, as anticipated, be expensed in accordance with International Financial Reporting Standards (IFRS) over the deferral period to 2017. In addition, Hyperion completed a $750m debt refinancing in April 2015 resulting in both recurring and non-recurring financing charges to the Group’s income statement. There will also be a number of one-off integration and other transaction-related expenses in 2015. As a result, the Group will report an IFRS accounting loss of £81.4m for 2015 despite a significantly higher level of operating profit.

The accounting loss under IFRS specifically reflects:

£84.8m of non-recurring and acquisition costs, including a non-cash charge of £29.7m in respect of the deferred consideration payable to RKH employee shareholders and a further non-cash impairment charge of £23.6m following a review of the carrying value of intangible assets relating to previous acquisitions.
£28.7m in respect of finance charges, including £22.7m of loan interest and similar cash items, with the balance relating to amortisation of capitalised fees and fair value adjustments.
£23.2m for depreciation and amortisation, including £15.8m related to customer relationship assets recognised on the acquisitions made during 2015.

The Board has concluded that Hyperion will not pay a dividend in relation to the 2015 financial year.

OPERATIONAL HIGHLIGHTS

Strategic acquisitions have brought scale, distribution and specialisms in key markets.

The acquisition of RKH was completed on 29 April 2015 and created a business with a strong international and UK retail distribution network outside North America; a leading independent specialty lines insurance and reinsurance broker; and a leading international specialist underwriting agency.

As well as RKH, Hyperion made a number of acquisitions in 2015 which strengthened its product and distribution capabilities both geographically and in terms of specialist market positions. These included:

Schouten Sicherheit International bolstered the Group’s presence in Germany, and brought Hyperion a leading market position in the global sports and contingency markets.
Harmonia, a leading insurance broking firm which specialises in employee benefits and commercial lines, enhanced the Group’s presence in Brazil.
Wacolda, Proseguros and NMB Colombia, which gave the Group a strong broking platform in Colombia.
Powell Bateson, a commercial insurance broking firm based in Liverpool, which brought specific expertise in construction, property and risk and safety management to the UK business.
PrimeCare Insurance Services Limited gave the Group a strong market position in the UK care sector through brands Care Homes Insurance Services and Primecare.
Perkins Slade, a UK-based sport and recreation, corporate and high net worth insurance broking firm gave the Group an enhanced market position in insurance broking services to sports’ national governing bodies and amateur sports associations as well as a regional broking operation in Birmingham.
UBK Correduria de Seguros, Spain’s eleventh largest broker, brought scale, broad regional presence and significant personal lines and high net worth expertise to the Group’s operations in Spain.
An initial 49% stake in, and management control of, specialist financial lines, commercial, employee benefits, marine, engineering and credit insurance broker, CIMB Insurance Brokers (CIB), which brought scale and enhanced the Group’s position and reputation in Malaysia, one of the region’s fastest growing markets.

The employee ownership model is at the heart of the Group’s proposition to all its stakeholders, attracting entrepreneurial talent to Hyperion and in turn delivering a different and enhanced offering to clients, employees and insurer and broker partners.

The Group’s ability to attract talent is evidenced in the appointment of a number of well-respected, senior market experts during the year, from Board level to business development, corporate governance and support services.

Three important senior appointments were made in 2015:

Dominic Collins became Chairman of the Group following the merger with RKH in April 2015.
Oliver Corbett was appointed Chief Financial Officer and an Executive Director of the Group Board in September 2015.
Clement Booth was appointed Non-Executive Chairman of the DUAL International Board and a Non-Executive Director of the Group Board in October 2015.

The Group is committed to growing its employee shareholder base and following the latest employee share offer, 600 of the Group’s more than 3,000 employees are now shareholders in Hyperion and its subsidiaries.

David Howden, Chief Executive Officer, commented:

“2015 was a pivotal year in what has been achieved for the future of Hyperion. Our commitment to a long-term strategy to build sustainable value for our shareholders through organic growth and strategic acquisitions that deliver balance in our operating model, geographic reach and product range remains as strong as ever. Hyperion now stands out as something exceptional in the insurance industry. The three pillars of the Group – our retail broking operations, our leading Specialty and Reinsurance business, and our international underwriting agency operations – are clearly differentiated from their competitors and are each market-leading in their own right. Together, and underpinned by majority employee ownership, they offer a truly unique proposition for clients, insurance markets, brokers and employees.

As we look to the future, the 2015 financial year has laid the foundation upon which we will continue to build a Group that stands out as a home for exceptional people; that provides a service to its clients and partners that is different from its competitors because its employees own it.”

Dominic Collins, Chairman, said:

“I am delighted that from 1 October 2015 the combined Hyperion and RKH businesses have been legally and organisationally integrated and the planned changes in leadership and structure have been effected. This ensures the enlarged Group is fit for purpose as the industry continues to evolve rapidly and I am confident we are well positioned to deliver the benefits to our clients, insurer partners and shareholders of our efforts.”