Mediation revenue from 2020: $ 2.15 billion
Percentage increase (decrease): 14.9%
Lockton Cos. LLC has continued to develop despite the coronavirus, says its senior executives.
Kansas City, Missouri – based brokerage business reported $ 2.15 billion in brokerage revenue for the fiscal year 2020, which ended April 30. This was an increase of 14.9% from the previous financial year.
Lockton, which added 220 employees to its brokerage business last year, remained at No. 8 in Business Insurance & # 39; 2021 ranked as the world's largest insurance broker.
It is still the only privately owned broker among BI 's top 1
"Our performance, even at the financial level, was the best it has ever been", and "actually far exceeded my expectations", says Peter Clune, Lockton's President and CEO.
"Now that we're on the other side, it's easy to breathe a sigh of relief," says Ron Lockton, the broker's chairman. "There was a lot of uncertainty and a lot of fear, and I'm just never been so proud to see Lockton's employees take care of customers and each other."
Mr. Clune said that a highlight of the past year was the development of the broker's transaction management team. In January, Lockton announced that Matt Heinz, formerly of Aon PLC, would lead the training with fellow partners Joseph Halpern, Eric Ziff and Gaurav Sud, who all joined Lockton in 2020. There are now 25 people on this team.
Another bright spot for the company is its reinsurance unit, which "continues to attract industry-leading talent," says Clune.
Lockton formed Lockton Re 2019 and hired three former Guy Carpenter & Co. LLC executives to operate the unit.
Lockton Re opened an office in Bermuda in June and appointed Jonathan Davies, former senior Aon PLC reinsurance manager, to run it.
Lockton Re now has just over 200 employees and has experienced "phenomenal growth", said Clune.
The agency has adapted well to the needs of the pandemic, say its managers. About 25% of employees have returned to the office.
"We really give our leaders the opportunity to find a flexible workforce that works best for our people, their families and their customers," says Clune.
While the brokerage industry has seen significant mergers and acquisitions in recent years, Lockton has committed to remaining private, Lockton says.
"We are not just private; we are constantly private and independent" and "focused on staying that way", he said.
"What we really find is that private ownership provides a level of stability and focus "and has" proved to be a winning formula for us. "
Over the past year, Lockton has entered markets in Ohio and Washington State, adding 66 new producers.
Other high-profile jobs include former Arthur J Gallagher & Co. Area President Patrick J. Haraden as President of its Boston operations.
It also appointed a new CFO, Troy Cook, who was the Vice President and Chief Financial Officer of Pittsburg, Kansas-based NPC International Inc., a restaurant franchisee and operator, replacing Henry Bond, who left the company in July 2020 after nearly eight years as CFO.
Mr Cook was previously served on Lockton's board. " "Someone with a strategic background for private equity," said Clune.
Lockton saw strong new business last year, Clune said. "In fact, there is some pain in the market," he said. "Where customers get increases, they are more open to talking to our employees, and I think our ability to come in and help customers solve problems is the reason we have had record-breaking business."
Lockton remains "a very impressive company," said Timothy J. Cunningham, CEO of Optis Partners LLC, a Chicago-based investment banking and financial advisory firm.
"They continue to grow significantly over the years," including to some extent outside the United States, but "they do so without making acquisitions, which is a bit unusual in our time," he said.
"They keep a relatively low profile" and "they are not really splashy," Cunningham said. "They go out and deliver to their customers."