The move has sparked Lloyd’s to launch a probe into a suspected workplace relationship involving the former chief exec.
Lloyd’s of London has launched an investigation after the American International Group (AIG) withdrew its support for John Neal as its next chair after alleged “inappropriate workplace relationships”.
Neal was the former chief executive at the insurance marketplace for over six years.
He was set to join Aon as its global CEO of reinsurance and global chair of climate solutions. But, in July, Neal agreed to join AIG as its president, upending his agreement with the insurance broker.
However, AIG announced on Friday that Neal would no longer be joining the company due to personal reasons. However, on Wednesday, the Wall Street Journal reported the insurance firm had pulled the offer after it had uncovered Lloyd’s of London had launched a probe into an alleged affair in the workplace.
Lloyd’s confirmed it has commissioned an external law firm to conduct an investigation into the supposed affair involving the former CEO.
A spokesperson for Lloyd’s said: “Sir Charles Roxburgh (chair) became aware of market speculation concerning possible historic breaches of policy. In October, he commissioned an independent fact-finding review, to ensure the corporation’s processes were robust and fully aligned with regulatory expectations.
“That work identified that our internal processes had not been fully adhered to in respect of a prior matter. In recent days, new information has emerged.
“In response, Lloyd’s has launched an investigation with the support of a law firm. It would be inappropriate to comment further while this work is ongoing.”
Sheila Cameron, CEO of Lloyds Market Association, said: “This market is made up of many great people who exhibit exemplary values and behaviours, and they will be as appalled as we are at the possibility of the market being tarnished by alleged poor behaviours from a small minority of leaders, who were previously at the top of Lloyd’s.”
Cameron referenced the 2019 Bloomberg report into insurance market culture, which revealed a male-domninated workforce and excessive drinking.
She added there has been “huge cultural and structural changes” since the report was published.
“Today’s events make it clear that we must reaffirm our market wide commitment to cultural change at every level in order to protect our market’s reputation. We have come so far on this journey – let’s not allow the actions of the few deter the will of many,” said Cameron.
The appointment of AIG next chair carries significance as the insurance corporation continues to diversify its business and services. In October the NYSE firm agreed on terms to acquire Convex Group, a provider of high-risk insurance services for $2.1bn. A deal that will be scrutinised by both US and UK regulatory and competition agencies.
