New Max at Lloyd's CEO Eyes 'Gradual Growth'

Max Capital Group Ltd.'s new head of its Lloyd's operation said the company is poised for gradual growth.

Max Capital said it's promoted Adam Mullan to chief executive officer of Max at Lloyd's Ltd., the Lloyd's managing agent for Syndicates 1400, 2525 and 2526.

Mullan succeeds Iain Bremner, former managing director of Max at Lloyd's, who will be leaving Max to pursue other career opportunities, the company said in a statement.

Mullan said the company has plans to expand gradually. "We have our eyes on other segments, but those initiatives are in the development stage right now. We're taking our time, and making sure we have the right teams in place. It's going to be a gradual evolution of the business and everything we do will be subject to Lloyd's approval," Mullan said.

He described the current market as "challenging."

"We have focused on a number of niche areas, and we have segments that we like. We are still getting the risk-adjusted returns we need on core segments, but we're not afraid to cut back on lines where we don't see adequate returns," Mullan said.

He said there's no real spur for the market to harden right now, but noted there could be issues on the horizon.

"Investment returns are at all-time low levels and inflation sits around the corner. Those two components need to be taken seriously by the market and need to be factored into pricing models. Ultimately, they will lead to positive price adjustments," Mullan said.

Mullan has been with Max since 2000, most recently serving as managing director of Max Re Europe and executive vice president and group chief underwriting officer for property and specialty reinsurance. He previously had worked for Ace, Marsh & McLennan Inc. and Carpenter Bowring.

Rounding out the senior management team at Max at Lloyd's will be Matthew Petzold, continuing as underwriting director, and Lance Gibbins, continuing as finance director.

Mullan's appointment as CEO is subject to the approval of the U.K. Financial Services Authority.

In August, the company said it would be continuing to reduce its investment in hedge funds specifically, moving a portion of its alternative investment portfolio to potentially less-volatile alternative assets. The company said it had been successfully growing its U.S. and Lloyd's business, and planned to reduce alternative investments as it increased its liability and underwriting exposures (Best's Review, October 2009).

Max Capital Group Ltd. (NASDAQ: MXGL) is a specialty insurer and reinsurer. Max Bermuda Ltd. currently has a Best's Financial Strength Rating of A- (Excellent).

The company's stock was trading at $22.73 a share on the afternoon of Oct. 21, up 1.07% from the previous close.