Chief marine hull and liability underwriter Paul Newton has left AXA XL — a move that has forced him to step down as chairman of the Joint Hull Committee (JHC).
It is understood Newton's departure is not linked to the restructuring of the marine insurance business in London, where insurers in the Lloyd’s and company market areseeking to turn around long-running losses.
But he is required to step down as chairman of the JHC — an association representing the interests of hull underwriters in London — because the conditions of the post call for it to be held by a working marine underwriter.
Departing with dignity
Newton took over the chairmanship from Peter Townsend, who had to step down after being made redundant from AmTrust’s Lloyd’s syndicate 1206 a year ago.
Before his departure, Townsend had warned of widespread redundancies among marine underwriters because of the dire state of the hull insurance market.
At the time, he said underwriters were “on the deck of the Titanic listening to the band”.
Townsend’s words were prophetic: he turned out to be the first high-profile departure, signalling the start of a cull of underwriters in London.
Although working privately, he has yet to return to full-time employment as a marine underwriter.
As reported by TradeWinds last week, head of marine Robert Clarkson has left Brit Insurance and, as a result, has also quit the JHC executive board.
Committee manager Neil Roberts said a decision on who would replace Clarkson and Newton would be made in the next month.
“There are a number of excellent candidates and we hope one of them will be able to take the position,” he said of the search for Newton’s successor.
Tide turning
There are indications that the tide may be turning for the hull market.
After a significant reduction in capacity at Lloyd’s market, rates appear to be continuing to firm.
The latest positive sign comes in the first-quarter earnings of London-based insurer Beazley Group. Its marine premiums increased to $81m, up 14% on the same period last year.
That beat Beazley’s average premium growth in all sectors of 12%.
