Lloyd’s of London is planning to cut 10 per cent of its UK staff, chief executive Inga Beale said today.
The insurance market is aiming to cut around 70 jobs from 700 in London, City A.M. understands.
In her half-year email, Beale said: “We are seeking to minimise the impact on our people by opening up a voluntary severance programme and through re-deployment within the organisation.”
Lloyd’s employees in the UK were informed of a proposed new organisational structure this month, and the corporation expects to roll out the changes, and cuts, in the fourth quarter.
It emerged in May that Lloyd’s had approached all of its 1,100 staff about voluntary redundancies. These cuts are understood to be aimed at its 700 UK staff only.
The cuts come in the context of a struggling market. Beale said in her report: “Given current conditions, improved performance means the market should shrink in 2017 and 2018 as underwriters maintain strong discipline.”
Beale added: “While progress against our objectives in 2017 has been encouraging so far, the fact we are expecting the market shrink this year and next shows there is still a performance gap to address.
“To close this gap, syndicates must exercise strong underwriting discipline, improve efficiency and reduce costs, supported by targeted market oversight, innovation and talent.”
In the email, Beale also updated readers on Lloyd’s Brexit plans, with the corporation shifting some staff to Brussels.
Beale said: “We are strengthening our relationship with the Belgian regulator, and in September we will submit our application for the Lloyd’s Brussels company structure, our working capital and operational model.
“Our focus on efficiency, access to trade and value for the market means that when the new office opens, brokers will be able to place EU risks in London using the same distribution networks as they do today.”