Holborn’s next generation reinforces commitment to independence

The incoming leadership team explains why employee ownership remains central to Holborn’s independence and growth strategy.

Key points:
Holborn leadership to change
Commitment to employee ownership
Plans in place for some time

Just over a week ago, Holborn Corporation, the independent, employee-owned, US reinsurance broker, unveiled details of a leadership succession plan. From March 1 next year, Frank Harrison, the company’s chief executive since 2005 and only the third CEO in its history, will take a step back. Adam Manus will take the reins as CEO and Tim Releford as president. Harrison will become non-executive chairman.

Harrison played a leading role in Holborn’s transformation into an employee-owned company in 1998, via an employee stock ownership plan (ESOP), and the company’s subsequent growth. Under his leadership, Holborn expanded its geographic reach, analytical capabilities and client relationships while preserving its distinctive culture and commitment to independence. 

A week on from the announcement, Harrison, Manus and Releford sat down with APCIA Today to reflect on the past week – and share some of the most common questions they have been asked about the change. Top of that list, they admit, has been questions about the broker’s long-term commitment to employee ownership.

Manus is keen to dispel any notion anything will change. Employee ownership, he stresses, is completely scalable – and designed to allow for changes in personnel when the time is right.

“Our strategy is to remain independent and employee owned. We believe that structure serves our clients and our employees extremely well, and this succession has been designed to perpetuate it,” he said. “We’re not announcing this transition with one eye on an exit. Quite the opposite – we’re demonstrating that Holborn has a structure capable of carrying the company from one generation to the next.

“Our ownership structure was specifically designed to make that possible. Independence at Holborn doesn’t depend upon one individual continuing to own the company. Through the ESOP, ownership can pass from one generation of employees to the next. This leadership transition is actually evidence that the model works.”

That said, he also stresses the firm must continue to be relevant to clients. “Ultimately, independence has to be earned. You remain independent by being financially strong, relevant to clients, able to attract talented people and willing to keep investing in the business,” he added.

Whose client? Our client.

That happens naturally, Harrison said, as long as the company remains true to one of the core philosophies that emerged from the ESOP: that “my client” becomes “our client”. He stresses that this is no slogan to Holborn – it is fundamental to its operating model. 

“At Holborn, client relationships belong to the institution, not to one individual. We deliberately put the collective experience, judgement and expertise of Holborn around the account.  That means the relationship can survive the retirement or departure of any one individual – including me.” 

It also remains central to its growth strategy. Holborn’s revenues have increased more than tenfold since becoming an ESOP. Manus said that the plan is to continue to do the basics that enabled that growth in the first place – while also being open to opportunities, should they emerge, be that in the form of people or companies.

“We’re extremely proud that substantially all of that growth has been organic because it means clients chose Holborn and entrusted us with more of their business,” Manus said. “We’ll continue to pursue meaningful organic growth through exceptional client service, new relationships and the development of our people.

“That said, we’re not opposed to acquisitions – we’ve made them when they made strategic sense – but given the extraordinary consolidation in our industry, there are few acquisition opportunities that might fit with us. However, if there are individual brokers who fit Holborn culturally and strategically, we would welcome the opportunity to strengthen our team.

“Employee ownership also creates a powerful alignment of interests. Our people are not simply working for Holborn; they have a stake in its long-term success. That encourages the kind of institutional thinking, collaboration, and commitments to clients that have defined our culture.”

“Succession should happen from a position of strength, not necessity.” 

Perfect timing

The other, almost inevitable, question Harrison said he has been asked has been around the timing of the changes. 

“After four decades plus in the industry and more than two decades as Holborn’s CEO, I have always believed one of my most important responsibilities was to make sure Holborn successfully transitions to its next generation of leadership. Succession should happen from a position of strength, not necessity.  This has been planned for years. We wanted to reach the point where Holborn had the leadership, ownership structure, and team-based operating model to make the transition naturally. 

“Adam and Tim are ready, the company is ready, and that makes this the right time. The ultimate test of succession is not whether an institution can continue without its former CEO. It is whether it becomes stronger under the people who follow them.”

For more news from the American Property Casualty Insurance Association (APCIA) click here.

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