The largest independent insurance broker Lockton has hired two new investment banking and technology experts to its recently launched Lockton Capital Markets division, with the goal of connecting insurtech start-ups with the capital markets.
Lockton launched its Capital Markets unit, which is based in New York, in September aiming to facilitate investment banking and capital markets transactions for its clients and prospects, with a focus on the convergence between insurance and alternative capital.
The broker has clearly recognised the demand for solutions that can help to narrow the gap between the original insured and the capital markets, hence its new hires have a technology focus as well as investment banking experience.
The firm has hired Ash Shah, who will serve as managing director, and Femi Ogunjumo, a vice president, to its Lockton Capital Markets division.
Shah has over 20 years of financial services, banking and technology expertise. He previously held senior management positions with Citi, TD Waterhouse Securities and the NYSE, with experience in evaluating, investing in and implementing solutions offered by fintech companies.
Ogunjumo has worked for more than five years in investment banking, advising corporate clients on a range of mergers and acquisitions and capital markets transactions. He previously covered insurance and insurance technology companies at Deutsche Bank and Sherman & Company.
At Lockton Capital Markets, the pair will work on driving growth for insurtech start-ups, executing transactions between insurers and insurtech companies as well as helping them to access the capital markets and alternative sources of insurance or reinsurance capital.
“We are fortunate to have two respected financial and technology experts, Ash and Femi, join Lockton Capital Markets,” explained Vishal Jhaveri, CEO of Lockton Capital Markets. “As Lockton Capital Markets expands into the insurtech space, their experience will help us to develop strong relationships to connect insurtech companies with capital markets.”
Lockton Capital Markets wants to be a conduit to bring together insurance business opportunities with alternative capital providers, targeting the provision of niche, “high impact solutions” for insurers and investors.
The promise is to bring alternative reinsurance capital providers closer to the risk sources through insurance technology start-ups, offering solutions to increase margin for institutional reinsurance capital providers, while enabling insurtechs to access efficient capacity sources.