View
5
Download
0
Category
Preview:
Citation preview
Insurance ceOs
rOute tO the tOpDna Of tOp perfOrmers
recent shIft In ceO prOfIles
2014
R408028 - rr-0014 - RRA Insurance Infographic - draft 04.indd 1 13/08/2014 12:31
2
methODOlOgy
Russell Reynolds Associates profiled the background and experience of 65 Chief Executive Officers (CEO) at 38 insurance companies globally, including 38 Group CEOs and 27 Divisional CEOs.
The analysis focused on:
� Route to the top for current Group and Divisional insurance CEOs.
� DNA of Group CEOs at top-performing insurance companies.
� Recent shift in Group and Divisional CEO profiles, with resultant future trends.
R408028 - rr-0014 - RRA Insurance Infographic - draft 04.indd 2 13/08/2014 12:31
3
rOute tO the tOp fOr current Insurance ceOs
� In insurance, more than in other sectors, the majority of CEOs were appointed internally.
� International experience is important but not essential. Around six in ten CEOs have worked in multiple countries.
� There is little gender diversity at the top, with only one female Divisional CEO in the sample and no females at the Group CEO level.
Internal vs. externalGroup CEos
Divisional CEos
For Comparison
FTsE 100 CEos
71%
81%
29%
19%
Internal
Internal
External
External
38 grOup ceOs
27 DIvIsIOnal ceOs 1 FEmalE
64 malEs
External
Internal
67%
33%
InternatIOnal experIenceGroup CEos
Divisional CEos
yes 61%
yes 56%
R408028 - rr-0014 - RRA Insurance Infographic - draft 04.indd 3 13/08/2014 12:31
4
functIOnal OrIentatIOn Of majOr leaDershIp rOles helD acrOss ceO career
26%
89%16%22%
34%
33%66%
52%
32%
56%
18% 89%
Operations & IT
Business Development/
P&L Role
Management Consulting
Finance
Risk/Underwriting/Actuarial
Investment Management
Group CEOs
Divisional CEOs
sectOr In whIch the ceOs spent majOrIty Of theIr career
30 CEos nEvEr havE workED ouTsiDE oF insuranCE
Group CEos Divisional CEos
74% 78%
8% 11%8% 7%5%5% 4%
Insurance Insurance
Banking Banking
Management ConsultingManagement
Consulting
Investment Management
OtherOther
rOute tO the tOp fOr current Insurance ceOs
� Experience is predominantly in-sector, with almost half of the CEOs having worked exclusively in insurance.
� With an absence of diverse sector experience, most insurance CEOs have held multiple functional roles, with an average of three.
� A mix of roles in business development, finance and/or risk is the most common functional background of CEOs, at both the Group and Divisional levels.
avEraGE numbEr oF DiFFErEnT FunCTional lEaDErship rolEs hElD
A COMBInATIOn OF P&L LEADERshIP AnD FInAnCE ExPERIEnCE Is ThE MOsT COMMOn ROUTE TO ThE CEO ROLE
3
R408028 - rr-0014 - RRA Insurance Infographic - draft 04.indd 4 13/08/2014 12:31
5
Dna Of ceOs at tOp-perfOrmIng Insurance cOmpanIes
The analysis below compares profiles of Group CEOs of the upper-quartile insurance companies with the rest of the Group CEO sample. Upper-quartile insurers returned at least 150% total return to shareholders between April 2009 and April 2014:1
� More than two-thirds of CEOs at the top-performing insurance companies were appointed between 2008 and 2009 during the financial crisis. The weaker-performing companies typically changed their CEOs more recently.
� CEOs at top-performing insurers are more likely to have held roles in finance, business development, and operations and IT.
� International experience is more common in CEOs at top-performing insurance companies.
year appOInteD 2008–2009 DurinG FinanCial Crisis
2010 anD laTEr
4 in 10 CEos aT Top-pErForminG insuranCE CompaniEs hElD a CFo rolE aT somE poinT in ThEir CarEEr
functIOnal experIence2 InternatIOnal experIence
+16%+19%
+16%+11%
Operations & IT
Business Development/
P&L Role
Finance Risk/Underwriting/
Actuarial
bEForE 2008Upper
Quartile Upper Quartile
Upper Quartile
Remaining Companies
Remaining Companies
Remaining Companies
10%32%
70% 20%18% 50%
all CEos aT Top-pErForminG insuranCE CompaniEs prEviously hElD a p&l rolE
4 In 10
morE ExpEriEnCE in
-6%
Investment Management
lEss ExpEriEnCE in
1. Factiva database, May 20142. statistics given in percentage points
uppEr QuarTilE
rEmaininG CompaniEs
yes 70%
yes 57%
R408028 - rr-0014 - RRA Insurance Infographic - draft 04.indd 5 13/08/2014 12:32
6
recent shIft In Insurance ceO prOfIles
The analysis below compares Group CEOs and Divisional CEOs appointed in the last two years with the rest of the sample:
� Over the last two years, there has been increased emphasis on the ability to transform the business and deliver results in a low-margin environment; understand and set strategy, taking (weak) capital positions into account; and drive innovation through the business.
� Going forward, we are likely to see even more importance assigned to innovation, alongside attention to technology. International experience also will be at a premium.
� Recent CEO appointments have seen a greater willingness to consider external candidates, but insurance “lifers” dominate the ranks of recently appointed CEOs.
external appOIntments
Appointed before 2012
share Of ceOs whO spent theIr entIre career In Insurance
Appointed since 2012
Appointed before 2012
Appointed since 2012
65%40%
manaGEmEnT ConsulTinG is almosT ThE solE sourCE oF ouT-oF-sECTor
TalEnT For rECEnTly appoinTED CEos
Decreased focus on
sales and Marketing
Investment Management
Appointed before 2012
17% 24%
share Of ceOs wIth cOnsultIng backgrOunD
functIOnal experIence
Appointed since 2012
almosT halF oF CEos appoinTED sinCE 2012 havE hElD ExpliCiT businEss DEvElopmEnT rolEs
avEraGE numbEr oF DiFFErEnT FunCTional lEaDErship rolEs hElD aCross ThE EnTirE CarEEr For CEos appoinTED sinCE 2012
2.7
Increased focus on
Business Development
Operations and IT
FinanceEqual focus on
Risk
P&L Ownership
areas Of IncreaseD ImpOrtance In Our recent ceO wOrk
� Transform the business and deliver results in a low-margin environment
� Understand and set strategy, often taking capital position into account
expecteD future areas Of fOcus � Innovation, especially in terms of distribution channels
� Technology, not only operations
� International experience
19%41%
R408028 - rr-0014 - RRA Insurance Infographic - draft 04.indd 6 13/08/2014 12:32
Russell Reynolds Associates is a premier provider of senior-level executive search and assessment, serving clients globally for 45 years. We advise on recruiting and retaining outstanding and impactful leaders and help our clients mitigate the risks associated with senior-level appointments.
BOARD ADvIsORy sERvICEs
ExECUTIvE sEARCh AnD LEADERshIP AssEssMEnT
CULTURE AssEssMEnT
� Board composition
� CEO succession planning
� Executive assessment and benchmarking
� succession planning
� Digital transformation
� Diagnosis of organizational culture
� Assessment of cultural fit
� Multi-culture integration
We are a private firm with 44 offices across north and south America, Europe and Asia/Pacific, covering all major business regions, including Africa, Eastern Europe and Russia, the Middle East and the south Pacific.
We leverage our collective expertise to identify and assess leaders who can support the growth and success of our client organizations:
� Our 350 experienced consultants are supported by a global research network.
� We lead 3,500 engagements annually across a broad range of industries and functional roles.
Insurance practIce: Our cOnsultantsAMsTERDAMRené de Zwaan
BARCELOnADiego Esteban
BOsTOnMark AdamsFrancois KouroriezDave seeley
BRUssELsPascale simon
BUEnOs AIREsPedro Ancarola
ChICAGOLyndon A. TaylorPaul ZellnerLimore Zilberman
hAMBURGAnnette Dölker
KnOWLEDGE MAnAGER, FInAnCIAL sERvICEsAnna slodka-Turner
hOnG KOnGDavid hughesGuillaume Lévinicolas MansetAshley Wallace
IsTAnBULÖzlem Pehlivan
LOnDOnsiobhan CaragherToby Crosthwaitesuzannah Mottahed
MExICO CITyEugenio Riquelme
MILAnFlavio Zollo
MUMBAIFiroze Patel
nEW DELhIsanjay Kapoor
nEW yORKshawn Banerji Justin Cerilli
PARIsPaul JaegerJulie Rullier
sãO PAULORaphael de CarvalhoRenato Furtado
sEOULKiwook Kim
shAnGhAIAnny Kwok
sInGAPOREJames DigginesGrace Lusuchi sethi
sTOCKhOLMhenrik Engsner Carl schander
syDnEyheidi Mason
TOKyOsteven Greenberg
TOROnTOshawn Cooperstephanie sykes
WARsAWDorota Czarnota
ZüRIChKatharina hesseJasmine Jennysabine MorantMatthias Oberholzer
R408028 - rr-0014 - RRA Insurance Infographic - draft 04.indd 7 13/08/2014 12:32
Recommended