Lloyd’s Probing Conduct of Ex-CEO Who Had Been Set to Join AIG

Lloyd’s of London is investigating its former chief executive officer, John Neal, who was set to start at American International Group Inc. next month before the company disclosed he’s no longer joining due to “personal circumstances.”

Lloyd’s Chairman Charles Roxburgh “became aware of market speculation concerning possible historic breaches of policy” and initiated an independent fact-finding review into Neal’s conduct in October, the firm said in a statement Wednesday.

A Wall Street Journal report on Wednesday alleged that Neal had a relationship with an employee at the company before he resigned earlier this year. The story cited people familiar with the matter.

A spokesperson for AIG declined to comment, and Neal didn’t immediately respond to a request for comment.

“In recent days, new information has emerged,” Lloyd’s said in the statement. “In response Lloyd’s has launched an investigation with the support of a law firm.”

On Friday, AIG said it had reached a “mutual agreement” with Neal that he would no longer join the insurer as president. He had been set to start on Dec. 1.

Neal had previously served as CEO of Australian insurer QBE Insurance Group Ltd, where his personal life also became an issue. In 2017, the company’s board cut his bonus by 20% after it learned Neal hadn’t disclosed another relationship, and he stepped down several months later. The news was reported by several publications at the time.

The New York Times reported on Friday that AIG’s announcement about Neal came after the publication asked the firm about a romantic relationship with a subordinate that he failed to disclose in 2017.

Photo: Lloyd’s of London CEO John Neal. Photographer: Chris Ratcliffe/Bloomberg