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Who
owns your organisation? Please indicate names and percentages owned
by each.
The Lloyd's brokers to which this questionnaire applies,
Butcher Robinson & Staples Ltd ("BRS")
Butcher Robinson & Staples International Ltd ("BRASIL")
and
Harding Maughan Hambly Ltd ("HMH")
are 100% owned by Butcher Robinson & Staples Holdings Ltd ("BRSH")
which in turn is a wholly owned subsidiary of chapter Group Plc
("CGPLC").
Aegis Insurance
Brokers Ltd ("AIB") is further wholly owned subsidiary
and places business in the London Market through BRASIL.
Turnover for
the group is about £100 million premium with £17 million gross and
£10 million net commission. Parent total assets employed are around
£7 million.
This ultimate
holding company, which guarantees the activities of its group companies
is owned by the staff and executives in the trading companies and
former executives. There are no institutional or outside shareholders.
The full shareholder list is available through the Registrar of
Companies. Back
to Questions
Is
it a company, partnership or corporation? Please describe subsidiaries,
affiliations, directorships or other close business relations, management
polls, etc., if any.
Basically, all above brokers are incorporated as private companies
and act as independent agents and intermediaries in the London and
International insurance and reinsurance industry. In many cases
the group acts as master brokers offering facilities, capacity and
expertise to the market.
The Lloyd's
brokers part of CGPLC and any subsidiaries, associated companies
and fellow subsidiaries are all wholly owned consolidated incorporated
bodies with limited liability under the UK Companies Acts. The directors
are from amongst the producers and shareholders.
The full corporate
structure with subsidiaries and affiliates is disclosed within the
group accounts and a full copy can be requested if required. There
are no managed "pools", etc. The group is independent
from other intermediaries and insurers and provides independent
'best advice' to agents and insureds. Back
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Where
was it chartered? When?
Group companies are limited liability companies registered in England
(unless otherwise stated) with registered offices at Collegiate
House or as notified. Although some group companies were originally
registered some 50n years ago the current main subsidiaries were
founded in 1976 to 1979. HMH joined the group in March, 1999. If
there is a need for the actual incorporation dates and changes in
names, etc., users of this questionnaire should apply to the Company
Secretary. Back
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Is
it supervised by a regulatory authority? Where?
Registered Lloyd's brokers are regulated under the Lloyd's Act 1982
by the Society and Corporation of Lloyd's. In addition, these companies
are registered under the Insurance Brokers Registration Act by the
Insurance Brokers Registration Council ("IBRC"). The Lloyd's
brokers are authorised to act as intermediaries in respect of insurance
and reinsurance business obtained from anywhere in the world.
The brokers
are subject to "IBA" rules as regards separation of insurance
assets and liabilities and has entered into Trust Deeds under Lloyd's
ByeLaw 5 of 1988 under which IBA assets are subject to s floating
change held on Trust by The Society of Lloyd's for the benefit of
insurance creditors.
These statutory
bodies (which also regulates Lloyd's itself and regulates registered
individuals) act on behalf of HM Treasury (formerly the Department
of Trade and Industry) and will shortly be rolled into the
FSA. Registered Lloyd's Broker are part of the LIBC compensation
provisions and under the overall Lloyd's umbrella and the UK Policy
Holders Protection Act.
Under each Memorandum
and Articles of Association is a formal record of principal activity
as insurance and reinsurance brokers and this is approved under
The Companies Act. under which group companies are incorporated
and registered. The financial statements are audited in accordance
with generally acceptable international accounting principles and
submitted to a Registrar of Companies annual Reports and Accounts
prepared in accordance with Financial Reporting Standards.
BRS, HMH, AIB,
BRASIL as part of the Chapter Group are fully accredited under international
Quality Standard ISO 9001 and are annually scrutinised under BVQI
(Bureau Veritas).
Each Brokers
is subject to the Laws of Agency as and intermediary and Corporation
Taxation under the Income and Corporation Taxes Act 1988 and tax
and VAT group elections.
The business
placed is regulated under various Acts of Parliament (for example
The Marine Insurance Act 1907) and is subject to the huge canon
of commercial and mercantile case law. Back
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Is
it licensed as an insurance broker, reinsurance intermediary, or
other insurance or reinsurance organisation? Where?
Yes. In UK. As Above. Also as empowered by Memorandum and Articles
of Association. Objectives lodged with Company regulators permit
reinsurance and insurance broking and agency functions anywhere
in the world.
Are
producers sub-licensed? Where?
Individual brokers and key members of staff are registered under
the IBRC. All broker directors and most broking staff are Lloyd's
members, associates or substitutes. Many brokers have Insurance
qualifications and the certification scheme introduced by Lloyd's
for all those with access to the Room have been applied in full
by the group companies. All officers and insurance staff are subject
to CPE and training requirements.
All UK Brokers
with which we deal are registered under the same IBRC and/or Lloyd's.
There are no casual producers or businesses not licensed which may
form part of the intermediary-principal chain. Where for any reason
(e.g. overseas agents) introductions are made by non-licensed intermediaries
these are not part of the chain but may be paid an introductory
commission. Back
to Questions
Do
any individuals have drawing accounts? If so, are settlements made
at least annually?
Not applicable.
Does
your organisation loan money to officers and/or employees?
No. Certain small amounts of assistance may be given upon request
to pay for Train or bus season tickets. Other small emergency amounts
may be extended on commercial terms.
Please
list any individuals other than officers who have authority to negotiate
with us.
All officers and brokers representing the Lloyd's broker are permitted
to make arrangements for the placement of insurance and reinsurance.
We are a broadly based group and users of this questionnaire are
invited to request list of empowered brokers relevant to the classes
of business proposed. All negotiations are overseen by appropriated
and empowered officers.
Do
you maintain fidelity coverage over all officers and employees?
If so, please indicate limits.
Not all. All employees and certain officers under professional indemnity
cover. Other directors and officers under cash fidelity cover and
under specific Trustees cover. We do have D&O cover with £5m
limit. Back
to Questions
Do
you maintain errors and omissions? If so, please indicate limits.
Yes. The current limit for London placements via BRS and BRASIL
is £30 Million each and every and in the aggregate - Excess of £25,000
(other than two at £150,000). In addition certain uninsured exposure
is ceded to the captive insurer. Other AIB cover has a £6 million
limit each and every loss.
Is
your organisation subject to quarterly, semi-annual or annual financial
audits by a certified public accountant? Please give name of auditor
and date of original appointment.
All group companies are subject to statutory annual audit by a leading
international firm of Chartered Accountants under the UK Companies
Acts.
Please
enclose a copy of the auditor's most recent letter of certification
and a copy of the audited financial statement.
See audit report. No relevant qualifications reported. Back
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Does
each officer, and individual named in Question 'i' file and annual
Conflict of Interest Statement with your organisation's Secretary?
Are such statements reviewed by the Chief Executive?
The directors interest in shares and contracts are submitted
annually in respect of company directors and reviewed by the Chief
Executive and the auditors. Brokers who are not directors are not
required to complete such forms. All such members of staff are subject
to the normal employment laws on conflicts of interest and constraints
of trade. Back
to Questions
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