Patrick Tiernan, newly appointed CEO of Lloyd’s, outlined his vision for the marketplace by stating that the organisation must prioritise sustainable profitability and maintain underwriting discipline across market cycles.
He stressed the importance of focusing resources on essential activities that support this long-term goal, while deprioritising others.
Tiernan thanked his predecessors and the Lloyd’s Council, noting the strong foundation they have built.
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.
Patrick Tiernan, CEO of Lloyd’s
He described trust in Lloyd’s financial stability as critical and said the market is well-positioned to take advantage of long-term strategic opportunities.
He acknowledged Lloyd’s relatively small global market share but argued that it can outperform competitors by focusing on its structural advantages.
“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,” Tiernan said.
These include syndication, a strong balance sheet, top-tier credit rating, and an extensive regulatory framework supported by international licences and permissions.
Tiernan described Lloyd’s as a unique network that works effectively due to its distinctive structure, not despite it.
He called for a long-term perspective, encouraging the market to focus on structural trends rather than short-term metrics.
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.
This includes remaining open to new risks, emerging asset classes, and expanding markets through an open model that enables various business types to connect with Lloyd’s infrastructure and licensing network.
Tiernan also committed to building an inclusive culture that attracts skilled professionals, promotes high standards of leadership, and empowers staff to act independently and quickly.
He emphasised oversight without micromanagement and encouraged listening over speaking, stating that Lloyd’s influence can be more effective when applied with restraint.
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”.
He concluded by reaffirming Lloyd’s role in supporting progress by helping clients manage risk and pursue innovation, including in areas such as advanced technology and space exploration. Tiernan expressed optimism about Lloyd’s future and said he looks forward to working alongside the market to build on its legacy.
