Changes in the company have placed over one hundred positions in a shaky state.
A number of massive changes are coming to Equity in the United Kingdom, and this is placing dozens, if not over a hundred insurance jobs at risk as the company works to become profitable again.
The company will be undergoing a tremendous overhaul that will split it up and break it down.
The son of AIG’s former head, Hang Greenberg had established a private equity house, but only four weeks after having purchased a UK auto insurer, it is now winding it down and disposing of parts of it. Now, as Aquiline Capital Partners works to bring Equity back to a state of profitability, dozens of insurance jobs, or more, could be slashed.
The Essex based insurer is risking losing over one hundred insurance jobs from these changes.
The insurer had operated the largest syndicate of auto insurance in the Lloyd’s of London market. It provides coverage for a quarter of all motorcycles in the United Kingdom. The overhaul is occurring under the leadership of the chief exec, Ian Parker, who has announced his plans this week.
In April, Equity was purchased by Aquiline for £87 million. This was a discount of 37 percent over its book value. Insurance Australia Group faced a loss of $240 million as a result of the sale. The purchase was first unveiled in December, but it wasn’t until last month that it was finally completed.
The insurer experienced massive losses when it did not manage to put enough money aside to cover a sudden surge in injury claims. This led Equity to be censured by officials at Lloyd’s regarding alleged failings in governance. Neil Utley, the former chairman of the company and one of the richest men in the U.K., admitted to two separate charges of “detrimental conduct” throughout his time there. This banned him from becoming a Lloyd’s director for two years.
In order to help to bring the business back to life, the amount of premium written by Equity – which was estimated to be worth £545 in 2011, is expected to drop by a minimum of a third as the new parent company investigates the various areas of the business that can be considered to be non-core. These reviews are expected to bring about the considerable insurance job cuts.