The last laugh over PBS

With the half-year results season in full swing, there appears to be a number of recurring themes, including profitability, rates rises versus volume and aggressive competition.

As well as putting up rates, Axa chief executive officer Philippe Maso has been seeking to make his business more sustainable by untangling long-standing relationships with affinity, broking and managing general agent partners he deems unprofitable.

With this in mind, it seems somewhat amusing that PBS Holding, one of the most high-profile commercial relationships that Mr Maso has scrapped, has now decided to appoint his predecessor at Axa, Peter Hubbard, as a non-executive director (see page 3).

Axa signed its deal with PBS during Mr Hubbard's time at the helm and the deal came under close scrutiny both before and after he left the insurer.

Indeed, given the fact that from day one Mr Maso has been critical of MGAs, it has been assumed that the PBS deal was at least a contributory factor in the parting of ways between Axa and Mr Hubbard.

So, in looking for a new insurance company role, was the cupboard so empty in the current economic climate that Mr Hubbard had little choice but take the role at PBS and the company that will ultimately supercede it, UK General?

Or, rather than seeing it as a painful reminder of his reign at Axa, will Mr Hubbard ultimately have the last laugh in helping grow the rebranded UK General to a size in which it ultimately seeks a successful trade sale, IPO or other exit?

Jonathan Swift