Newly Seated Omega Board Taps Former Heritage CEO to Lead the Company

The newly appointed board at Omega Insurance Holdings has named Richard Pexton, former chief executive officer of Heritage Underwriting Agency, to take the helm as Omega's new CEO.

Pexton succeeds Richard Tolliday, who is no longer a director of the company.

Attempts to reach Omega for comment were unsuccessful.

Earlier this month, Omega shareholder Invesco Ltd., which owns 29.5% of the property insurer and reinsurer, led other shareholders in a coup to vote in six new board members. Omega, which had urged shareholders to vote against Invesco's unusual request, announced after a special shareholder meeting the Invesco's slate of candidates, including retired Benfield Group chairman John Coldman, had been voted in (BestWire, March 12, 2010).

In addition to Coldman, newly elected chairman of the company, and Pexton, the Omega board now consists of: Chief Financial Officer Penelope James, James Bryce, Robin Spencer-Arscott, Jonathan Betts, Ernest Morrison, and David Cooper.

Pexton started his career as a trainee at Lloyd's and in 1979, joined B F Caudle Agencies to develop a property facultative account. He also assumed responsibility for its U.S. international treaty reinsurance business and in 1985, became deputy underwriter and a board member. In 1992, he joined Cox Insurance plc, which managed one of the five-largest syndicates at Lloyd's and became an active underwriter and a board member there.

In 2002, he joined Heritage Managing Agency as CEO, successfully launching an initial public offering of the Heritage business on the London Stock Exchange in 2006, before becoming CEO of Heritage Underwriting Agency plc. In 2008, Pexton was "instrumental" in the sale of Heritage to Argo Group, at more than double the IPO valuation, Omega said. He left the business in December 2008 and remained on leave until the end of 2009.

Invesco is a global investment management company with $423.1 billion in assets under management as of Dec. 31 (BestWire, Feb. 23, 2010).

Omega writes short-tail property insurance and reinsurance -- including operating a Lloyd's syndicate -- from offices in Bermuda, United States, London and Cologne.

Omega had said it has conflicting information from shareholders as to whether the Invesco-led coup was being staged in part to reinstate John Robinson, who was chief underwriting officer until he left the company Oct. 29. Robinson co-founded Omega's Lloyd's Syndicate 958 in 1979, but Omega replaced him as active underwriter of the syndicate in September. A month later, he stepped down as director and chief underwriting officer.

On Feb. 22, A.M. Best Co. placed the Best's Financial Strength Ratings of A- (Excellent) of Omega Specialty Insurance Co. Ltd., (Bermuda) and Omega US Insurance Inc., under review with negative implications due to the "uncertainty regarding Omega's board composition, operational management and future strategy" (BestWire, Feb. 22, 2010).

The Best's Syndicate Rating of A (Excellent) of Lloyd's Syndicate 958, which is managed by Omega Underwriting Agents Ltd., remains unchanged at the Lloyd's market level.

(By Meg Green, senior associate editor, BestWeek: [email protected])