Aon has announced six layoffs as part of a restructuring of its captive business in Cayman.
Adrian Lynch, managing director of Aon Insurance Managers (Cayman) Ltd., said 2014 had been a difficult year for the company due to the loss of clients and a corresponding decline in revenues.
To match the lower revenues, the company has to reduce costs, and because the most significant cost for the business is personnel costs, the decision was made to cut 10 percent of the workforce, he explained.
The job losses announced last Friday affect two administrative staff, two account management staff and two senior account management staff from the various administration, accounting and underwriting teams in the office.
Of the six employees, four have Caymanian status and two are expatriates.
“From a human perspective, it was extremely difficult,” Mr. Lynch said. The decision was not about individual performance or behavior but a direct result of declining revenues, he added. “We very much want to thank those six affected employees for their time, effort and hard work over the years and wish them luck with their respective futures.”
Aon continues to employ 50 people in its Cayman office, of which 60 percent are Caymanian.
The restructuring of the captive business also included the expansion of the senior management team.
Mr. Lynch, who started his tenure as managing director of the Cayman business in March last year, was brought in after both the managing director and the deputy managing director left to join competitor firms. Since Aon’s business is based on relationships and those relationships were concentrated with too few key people, the company suddenly found itself “in a very vulnerable position,” Mr. Lynch said.
As a result, AON had to develop a plan to expand and stabilize its senior management team and has now appointed three directors, Howard Byrne, Gillian Owen and Janet Sairsingh, increasing the management team to six.
The new directors will be responsible for leading a number of initiatives to strengthen the existing captive business and meet the wide-ranging needs of Aon clients.
“We have to take more responsibility in terms of the relationships we have with our clients,” Mr. Lynch said.
“It is essential that we strengthen our operational excellence model in Aon Cayman to solidify our long-term commitment to our clients and to Cayman. As the captive management industry continues to evolve, our obligations to continually drive up the standards of output for our clients moves with it.”