Patrick Tiernan’s first note to the Lloyd’s market

Patrick Tiernan, newly appointed Chief Executive Officer of Lloyd’s posted the following note on LinkedIn

It starts with openness

Whenever I arrive early or leave late here at Lloyd’s HQ, I detour across the marble floor of the empty Underwriting Room and gaze up at the glass ceiling. It’s always a thrill. For me, this is the Madison Square Garden, the Roman Colosseum, and the Sydney Opera House of insurance.

But today I have two added reasons to be grateful as I cross our atrium. First, because I have the privilege of making the walk past the Lutine Bell as the new chief executive of this fantastic and storied organisation. And, second, because I can still walk.

As many of you know, I took a medical leave of absence last year. A routine check-up ahead of my 50th birthday led to the discovery of some tumours in my spine. Doctors told me that without a series of surgeries, I would lose the use of my legs by Christmas.

I had a lot of time to think during my recovery back to full health. First and foremost, I thought about getting better – for my wife, my two teenage daughters, my family back home in Ireland, and my close friends. But I also wanted to get back here. This is my home from home.

I grew up as part of a big family in a small house. My Mum was always full of praise for me and my three sisters – no matter how extraordinarily average we were. But if you did something that made her really proud, she’d write you a short note.

I still have all those notes in a drawer at home. When I read them during some low moments last year, I noticed a common thread. None referred to achievements. They were all prompted by moments when I’d made someone else feel special. That’s what made her most proud.

As your chief executive, my aim is to make working at Lloyd’s always feel special. I want us to work together to show our many stakeholders what makes this market special. When we look back on all we will achieve, I hope that’s what makes us most proud.

As I take on this role, I want to thank Charles and Council for the trust they have placed in me. I also want to express my gratitude to John, who has overseen the market’s transformation from crisis to robust health.

Trust in the financial strength and stability of Lloyd’s is paramount. You have all worked tirelessly to enable the market to deliver several successive years of strong performance and ensured Lloyd’s is now well-placed to grasp a generational opportunity.

So, what is that opportunity, how can we seize it and why is it so important we do?

At a time when the world is in flux, I firmly believe we can increase the relevance, influence and brand of Lloyd’s to educate, innovate and inspire. As our long history amply demonstrates, risk and opportunity are two sides of the same coin.

While we must acknowledge that we are a small share of the global insurance industry, we can punch above our weight if we concentrate on the unique advantages of the Lloyd’s market to empower risk taking, trade and wealth creation.

Lloyd’s is the ultimate social and mercantile network. The ability of members to underwrite risk is spread by syndication and amplified by our strong balance sheet, credit rating, chain of security and central fund. That reach is extended by the myriad licenses and special regulatory permissions we hold.

This all means that the total adds up to many times the sum of its parts: no other financial institution can shoulder more risk for each dollar of capital. Lloyd’s doesn’t work despite its idiosyncrasies; it works because of its idiosyncrasies.

We must, therefore, have the confidence to celebrate what makes us different by focusing on the fundamentals that underpin this organisation. We must raise our gaze from the next quarter to the years ahead by focusing on the enduring trends that are shaping the future.

And our primary focus – both in terms of time and money – must be on the activities that support sustainable profitability and underwriting discipline through the economic cycle, while deprioritising those activities that don’t.

How do we ensure Lloyd’s is inarguably the pre-eminent market for risk in the world? For me, it all starts with openness.

As a market, we must be open to new risks, new assets and new frontiers. We will build an open architecture that allows different business models to plug into the market and harness the multiplier effect of the network. And we will open our building to insurance practitioners from around the world.

We will foster an open and inclusive culture that attracts the best and brightest talent available. Our leaders will uphold the right values and standards. And our colleagues will be empowered to deliver at pace with the freedom to make honest mistakes.

And because we are stewards in the service of Lloyd’s, we will provide oversight without being overbearing. We will open our ears a lot more and our mouths a little less, remembering that the voice of Lloyd’s carries further when we whisper than when we holler.

Throughout its history, Lloyd’s has played a crucial role in the progress of humankind – not by telling people where to go, but by helping them get to the destination of their choice faster while managing the jeopardy they encounter along the way.

We help solve novel and knotty problems. But we also help others realise their dreams. Together we will continue this proud legacy, whether it is the next development in quantum computing, manned missions to Mars, or visions not yet dreamt.

As your new chief executive, I don’t profess to have all the answers. But in the spirit of openness, I will admit this: I have big dreams. And I cannot wait to begin this next chapter with you.

For now, I’ll just add: “I have promises to keep, and miles to go before I sleep.”