Chief Risk Officer

Title: Chief Risk Officer
Company: Cincinnati Global Underwriting Agency Ltd
Reporting to: Derek Eales, Chief Executive Officer
Location: London

Overview | Cincinnati Financial Corporation

Cincinnati Financial Corporation (CFC hereafter) is the 20th largest insurance company in the US by market share. Founded in 1950, the organisation now provides property, casualty, life and disability income insurance, annuities, and asset management services. CFC’s insurance appetite increased in 2008 when it started writing excess and surplus lines through the newly formed Cincinnati Specialty brand. In 2019 CFC made a significant investment and strategic move to enter the Lloyd’s specialty market through their acquisition of MSP Underwriting Syndicate 318. CFC is now generating over $7.5bn in premium and investment income in 2020 and has over $21bn of investments.

Overview | Cincinnati Global Underwriting Ltd

Cincinnati Global Underwriting Ltd is a wholly owned subsidiary of the US parent Cincinnati Financial Corporation. CGU operates through Cincinnati Global Underwriting Agency Ltd., which is the Lloyd’s managing agent for Cincinnati Global Syndicate 318, collectively, the business is known as Cincinnati Global.

Context and strategy:

Cincinnati Global has approximately 65 employees in London. In 2021, the business underwrote £179m in premium, generated from six classes of business, including Property, Binding Authorities, Credit & Political Risk, Political Violence & Terrorism, Specie, and Contingency lines. The 2021 calendar year result for Syndicate 318 was a £23m profit with an 83% combined operating ratio.

Cincinnati Global has fostered an underwriting-focused culture, where striving for underwriting profit surpasses the growth agenda. The leadership team of Cincinnati Global is committed to becoming a best- in-class Lloyd’s syndicate, both from a performance and cultural perspective.

In order to achieve its goals, Cincinnati Global brings together talented and dedicated professionals who can achieve results in the challenging environment in which the business operates – with the aim of empowering individuals within a robust framework.

A critical component that will support the achievement of these ambitious results is ensuring that risk is managed appropriately. A newly appointed Chief Risk Officer (CRO) will act as a trusted advisor and be part of the leadership team supporting and influencing key decision-makers to take the appropriate amount of risk and build a healthy risk culture.

Cincinnati Global needs a highly capable, intelligent, and forward-thinking risk leader: someone who can not only create a fit-for-purpose risk framework but also build strong relationships and collaborate proactively and ethically with all business functions, regulators, and stakeholders. This person will not only help the board factor in uncertainty that could impact Cincinnati’s business model and objectives but significantly enhance the firm’s resilience and longer-term sustainability by translating risk appetite into simple terms.

This role:

The CRO will lead a team of five across risk management and exposure management and be responsible for ensuring the successful implementation of an appropriate Risk Management Strategy that supports the wider business strategy. You will also be responsible for managing financial risks from climate change, and reporting on such to the risk committee and board.

Boards & Committees: the CRO will sit on the Executive Committee and the Risk Committee, but is encouraged to attend other sub-committee meetings as deemed appropriate

Core accountabilities and assessment criteria: In this appointment, Cincinnati Global is looking for four distinct areas of expertise to affect the necessary change across the business:

A: Leadership & Vision:
Vision: Sets a compelling vision for risk management. Bringing colleagues, from inside and outside the risk team, with them on the risk journey. Thinks long-term, applies market, regulatory and business insight, and simplifies complexity to drive intelligent strategies that are ambitious and realistic for the organisation.
Relationships and Influence: Develops purposeful, strong relationships, connects people, and strategically networks for the organisation’s benefit, applying interpersonal astuteness to understand, rally, inspire and influence others. Visibly celebrates team successes and proactively helps others become noticed.
Executing for Results: Drives continuously improved behaviours and thinking towards risk across the organisation, prioritising objectives and resources strategically for the greatest impact. Impactful: Builds, motivates, and develops a diverse and robust risk practice. Leads by example, delegating and holding self and others accountable to stretch goals. Connects risk management to business performance and business strategy.

B: Change Management:
Proactive and adaptive: Learns confidently and handles innovation, adjustment, or modification well. Demonstrates an ability to embrace ambiguity and uncertainty, especially as new practices emerge and regulatory interest shifts.
Transformative: Possesses the political and emotional intelligence to operate effectively in a complex and constantly evolving environment. Ability to manage up as well as down and transform the firm’s risk framework and internal controls and models.
Open Mindedness: Motivated to research information and scenarios, evaluating them with an open mind. Listens carefully, develops options, and prioritises acquired information.
High achieving: Operates successfully with a reduced level of certainty and a high level of ambiguity. Finds the right balance between rigour and flexibility.

C: Relationships & Communication:
Regulators: Cultivate long-term, trusting, and open relationships with the various regulatory bodies that take an interest in the activities of Cincinnati. Be proactive in anticipating any requests or questions and be consistent, regular, and highly professional in communication style.
Internal: Build honest, caring, and professional relationships with the Board and Senior Management, ensuring the risk framework is aligned to the strategic growth goals of the business. To the wider Cincinnati business (including the parent company and US colleagues), give regular updates on the risk agenda, expectations of each business unit, progress being made, and any recent risk developments affecting the business. Keep close to the organisation at all levels to monitor first-line accountability, see first-hand the changes being implemented, and be viewed as a trusted business advisor.
External: Coordinate and manage where appropriate relationships Cincinnati holds with key third- party service providers, significant clients, major distribution channels, and other relevant industry bodies. Be ambassadorial in all dealings with third parties, strengthening the already long-standing and respected brand of Cincinnati.

D: Subject Matter Expertise:
Solvency II: Work with the CEO and CFO to ensure the Solvency requirements are understood and that the business is adequately financed, considering PRA and Solvency II requirements.
ORSA: Run the ORSA process and review the annual report before its presentation to the Cincinnati Board / Risk Committee to reflect a true picture of Cincinnati and its risk profile from the perspective of the first and second line of defence, including an evaluation of the risk mitigation effectiveness
Internal Model Use: Comprehensive understanding of the Internal Model outputs to provide input and challenge to the process, and help ensure that it remains fit for purpose, including for the calculation of capital requirements pertaining to commercial decision making. Provide technical expertise in respect of independent validation.
Model Validation & Testing: Provide technical expertise in respect of independent model validation, overseeing validation testing and governance. Develop stress and scenario testing; continuously enhancing the current testing regime to bring deep risk and business insight.

Desired Skills and experience:

The successful candidate will:

• Be an experienced insurance professional with a strong risk, actuarial, or exposure management background.
• Have knowledge across a broad spectrum of risk, including experience/exposure to multiple lines of business, which will be crucial to supporting Cincinnati’s future growth plans.
• Possess a deep understanding of relevant aspects of Lloyd’s Internal Model and can validate and challenge the parameterisation, assumptions, and results of the Internal Model.
• Hold a strong sense of commercial opportunity alongside an ability to consider downside risk.
• Be a creative and dynamic thinker who can look through the obvious and consider risks and ideas that are not always apparent.
• Possess the ability to listen, consider diverse opinions, collaborate with colleagues across the business, and move proactively to a decision-making stage.
• Have an eye for the important details and be comfortable allowing others to manage the specifics and implement solutions.

How will success be judged:

Over an agreed period, the CRO will have:

1. Integrated new classes of businesses into the Risk Management Framework.
2. Created strong relationships and collaborated proactively and ethically with all business functions through day-to-day engagement and oversight
3. Provided effective advice, helping the board set the right ‘tone from the top’ regarding risk ethics and building a healthy risk culture.

Career Opportunity

This opportunity would be excellent for a risk officer looking to make a real impact and build a team in a fast-growing company. The role offers the chance to lead and shape the risk management strategy for a rapidly expanding business and to build and develop a team of risk professionals. You will also have the chance to grow with the company as it expands. As the company grows, so too will your responsibilities, giving you the opportunity to develop new skills and advance your career. Moreover, being part of Cincinnati’s executive team offers the unique chance to work with a close-knit group of people who are all passionate about what they’re doing. You will learn from each other and build strong bonds that will last long after the company has reached its full potential.

Disclosures:

We kindly ask that you inform Damhurst of any detail that may impact your participation in this process or even your ability to accept an offer of employment. Furthermore, if this role requires you to perform a controlled function for an authorised firm or an appointed representative firm, kindly disclose to Damhurst any factors affecting your ability to satisfy the criteria for regulatory approval.

Process:

This process is highly confidential, and the circle of trust is select and carefully controlled. If approached about this role, you have been individually selected by Cincinnati Global Underwriting Agency Ltd prior to being contacted by us. Damhurst & Co is working with Cincinnati Global Underwriting Agency Ltd on an exclusive basis to ensure the most suitable person is appointed to this important role. For all further correspondence, please contact Guy Fraser on +44 (0) 20 3865 1129 or via email at gfraser@damhurst.com.