Direct Line hires Aviva executive Adam Winslow as its incoming boss
- Winslow to run Aviva’s UK and Ireland general insurance arm from May 2021
- He also spent eight years at American insurance giant AIG in various positions
- Direct Line Group, which owns the Green Flag brand, fell by £39.5m last year
Troubled insurance company Direct Line has appointed Adam Winslow as its next chief executive following one of the most challenging years in the firm’s history.
From May 2021, Winslow is set to take over the management of Aviva’s general insurance business in the UK and Ireland, after previously leading the company’s international markets division.
He had previously worked at AIG, a prominent insurance company in the US, for a span of eight years. During his tenure, he held several positions, including the leadership role of their global life insurance businesses.
Aviva’s new chief executive has been announced as Adam Winslow.
John Greenwood, who took over as acting chief executive in January following Penny James’ departure, will be replaced by him in the first quarter of next year.
A fortnight after the Bromley-based business alarmed investors with a profit warning and cancellation of its final dividend, he decides to depart.
Direct Line, the parent company of Churchill and Green Flag, disclosed a yearly deficit of £39.5 million, contrasting with the £343.7 million profit achieved in the prior year, after a span of two months.
The introduction of Financial Conduct Authority rules last year had a negative impact on its performance as insurers were no longer allowed to practice ‘price walking’, which involved charging higher premiums to loyal customers.
At the same time, the motor division of the group experienced a negative impact from the escalating prices of pre-owned vehicles and the Ukraine conflict. These factors resulted in extended repair durations and higher claim expenses.
Furthermore, following the exceptionally cold weather in December, Scotland and North West England experienced severe weather events resulting in claims that amounted to £149 million. This figure surpassed earlier estimates, exceeding them by more than twice the amount.
The company issued a cautionary statement, indicating that economic uncertainty and what it believed to be inflation higher than previously anticipated would continue to affect its motor business earnings.
In the following years, Direct Line has acknowledged that it paid lower amounts to certain customers of car and van insurance for a span of five years.
The FCA has received a directive to conduct a thorough assessment of losses incurred on vehicles declared as write-offs from September 2017 until mid-August 2022. Additionally, it is tasked with identifying and providing compensation to policyholders who received an unjust settlement.
According to Danuta Gray, Chair of Direct Line Group, Adam has extensive knowledge and substantial leadership experience in the UK general insurance industry. He has spent over twenty years working in personal and commercial line insurance.
After conducting an extensive search, the board recognized Adam Winslow as an exceptional candidate due to his deep understanding of the industry, impressive history of successfully leading top-performing companies, and unwavering commitment to operational excellence in meeting customer demands.
Winslow is anticipated to receive an annual salary of £820,000 and a pension allowance of 9 percent in line with the company’s employees.
According to Russ Mold, investment director at AJ Bell, the new leader appears to be a secure and knowledgeable addition who is fully aware of the obstacles currently affecting the UK general insurance market.
The Direct Line Group’s shares experienced a 1.65% increase, equivalent to a gain of 1.6p, reaching a value of 162.35p on Wednesday morning. However, it is worth noting that these shares have depreciated by almost 48% in the last two years.
Source: www.dailymail.co.uk
