Lloyd's launches investigation into former chief executive over 'alleged workplace affair'

Mr Neal’s move to AIG had been announced in July, signalling what appeared to be a major career shift for the senior insurance executive.

However, the American firm cancelled the arrangement last Friday, citing “personal circumstances” as the reason for the mutual decision to end discussions.

Reports in The Wall Street Journal subsequently revealed AIG rescinded the offer after becoming aware of Lloyd's fact-finding work.

The newspaper said the investigation focused on an alleged relationship between Mr Neal and Ms Clement, who held the role of corporate affairs director.

The development represents a sharp reversal for Mr Neal following his departure from Lloyd's after more than six years leading the insurance market. His planned transition to AIG has now been halted as questions emerge surrounding his conduct during his tenure.

Mr Neal became chief executive of Lloyd's in October 2018 after previously serving for five years as group chief executive at QBE. Lloyd's announced his departure in January 2025, with an expectation that he would join broking firm Aon as global chief executive of reinsurance and global chairman of climate solutions.

That move did not materialise after AIG announced in July that it had hired Mr Neal as president, effectively superseding the earlier arrangement with Aon.

The AIG appointment had been set to begin on December 1 2025 before being abandoned. The current investigation centres on Ms Clement’s promotion in July 2023 to a new corporate affairs director role.

According to the WSJ, she reported directly to Mr Neal in this position. Concerns were raised by Lloyd's staff members regarding perceived favourable treatment towards Ms Clement.

Those complaints were brought to the attention of the organisation's governing council.

Despite the allegations, Ms Clement has maintained her appointment followed established procedures. Employees specifically expressed concerns about potential preferential treatment, prompting further examination of the workplace dynamics at the time.

Lloyd's is now assessing whether any aspect of the alleged relationship may have breached internal policies or governance standards.

This includes evaluating whether protocols in place during Mr Neal's leadership were properly followed.

Lloyd's Chair Sir Charles Roxburgh commissioned an independent fact-finding review in October after becoming aware of speculation within the market. The review was launched to ensure that internal processes fully aligned with regulatory expectations.

Lloyd's confirmed the preliminary review identified areas where "internal processes had not been fully adhered to in respect of a prior matter", although no additional details were released.

Further information emerging in recent days prompted the escalation to a full investigation supported by legal advisers. In a statement, Lloyd's leadership emphasised their collective focus on upholding governance standards.

The chair, chief executive, council and executive team reiterated their commitment to maintaining "the highest standards of integrity and governance".

A spokesman said Lloyd's recognises its responsibilities as custodian of one of the world’s most significant insurance markets. They stated that protecting trust among market participants remained a priority.

Lloyd's Market Association chief executive Sheila Cameron welcomed confirmation of the investigation. She urged transparency and decisive action once findings are concluded.

She said: "This market is made up of many great people who exhibit exemplary values and behaviours, and they will be as appalled as we are at the possibility of the market being tarnished by alleged poor behaviours from a small minority of leaders, who were previously at the top of Lloyd's."

Ms Cameron praised the current Lloyd's leadership for demonstrating a commitment to behavioural improvement and openness. She called for sustained momentum behind ongoing cultural change efforts.

She also referred to progress since Bloomberg's 2019 report on insurance market culture, which prompted industry-wide reform initiatives. Ms Cameron said maintaining a consistent focus on cultural change across all levels remained essential for protecting the market’s reputation.

AIG have declined to comment.

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