Lloyd’s still losing people despite boost in profits

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Lloyd’s of London has bolstered executive pay and intends to increase graduate recruitment having moved back into the black for 2012. However, more people are still leaving the market than joining.

Despite a $2.2bn (£1.35bn) hit from Superstorm Sandy, Lloyd’s managed to post a profit of £2.77bn for 2012. In 2011, the costliest catastrophe year on record, it slid to a £516m loss.

Executive pay has been bolstered to reflect this. Chief executive Richard Ward received a total of £1.7m in 2012, compared to £1.4m in 2011, including a 20% uplift in base pay. Tom Bolt, its director of performance management received nearly £300k more in total compensation - £1.3m compared to £1.05m in 2011 and finance director Luke Savage was handed £1.17m, up from £893k in the prior year.

Lloyd’s is focusing more on base salaries for its executive team and handed out increases of between 15-20% this year. At the same time, bonus potential has been reduced; Ward could have received 150% of his salary as a bonus in 2011, but this has shrunk to 100% in 2012. Bolt, meanwhile, can only achieve 67% of his salary as a bonus, compared to 100% in 2011.

Despite the more positive year for Lloyd’s, employment is still shrinking, at least in the UK. There are now 726 people working in the London Lloyd’s market, compared to 752 at the beginning of 2012. While 145 people joined the market, 171 left either voluntarily or through enforced redundancies.

Job numbers have remained consistent elsewhere in the world, even if they’re relatively diminutive. There are 33 people employed in the US, 7 in Canada, 67 in Asia, 47 in continental Europe and 10 in Africa, Australia and South America.

Recruiters suggest that it’s been a strong start to the year for hiring into the Lloyd’s market. While last year, recruitment was focused more on syndicates or managing agents, brokers have been keen to hire so far in 2013.

Another area of expansion for Lloyd’s is graduate recruitment. Its generalist graduate programme launched in 2008 intends to hire 15 people this year, compared to just eight in 2012.

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