Lloyd’s of London set to name Carnegie-Brown as new chairman

February 16 2017, 8.03pmUpdated: February 17 2017, 11.31am
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Insurance market Lloyd’s of London is on course to name Santander board member Bruce Carnegie-Brown as its new chairman ahead of John Nelson’s departure later this spring.

The Press Association understands that the firm’s directors are set to confirm the appointment by Monday, in hopes that Mr Carnegie-Brown will take the reins from Mr Nelson in May.

It will mark the end of a near-five year tenure for the Lloyd’s of London boss, who took over as chairman of the insurance market in 2011.

Rumours of his planned departure first emerged in 2015.

Mr Carnegie-Brown, who is currently a non-executive vice chairman at Santander, has served on the Spanish bank’s board since 2015. He also sits on the board of its UK operations.

The incoming chairman was born in Sierra Leone in 1959.

He spent 18 years at JPMorgan Chase and four years at Bank of America before taking up roles at Close Brothers and Aon UK, and founding the listed private equity division of 3i Group.

Mr Carnegie-Brown also currently sits as non-executive chair of the Moneysupermarket.com Group.

The news comes as the insurance market gears up to reveal a location for a potential EU subsidiary as part of its Brexit contingency plans by the end of the first quarter.

It would give Lloyd’s of London access to the single market even if the Government follows through with plans for a hard Brexit.

Sources told the Press Association earlier this month that Luxembourg has emerged as the frontrunner on a short list of five sites – including Malta, Dublin, Frankfurt and Paris – for a potential EU subsidiary.

The move could see more than 100 jobs at the insurance market shifted from London to the continent.

Lloyd’s generates around 11% of its revenue in continental Europe and Mr Nelson and chief executive Inga Beale have previously warned that losing single market access would be detrimental.

The insurance market is set to outline the potential costs of a relocation when it suggests a new site to its members at the end of the first quarter.

Lloyd’s may have to stump tens of millions of pounds to cover higher operating costs, regulatory requirements, and capitalisation.

EU regulators may force Lloyd’s to capitalise a subsidiary separately, which means a portion of its cash will be put into untouchable reserves that will underpin the business.

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