Set up 25 years ago to operate across multiple jurisdictions, Lombard’s business model hasn’t changed dramatically during that time. This deep expertise in wealth planning across different jurisdictions means the company is well placed to serve an increasingly complex and global client base, executive sales director for Europe Jurgen Vanhoenacker tells International Adviser.
How would you describe Lombard International Assurance?
We offer unit-linked wealth solutions via an open-architecture model to high net-worth individuals with more than €1m in assets. In essence, we are a solutions provider.
We are not an asset manager or a bank. We offer peripheral services through partnerships with private banks and asset managers.
This gives our clients flexibility about which bank, asset manager or investment manager they work with, and we provide the wealth structuring solutions through our insurance offering.
Our clients are generally high net-worth families and individuals with relationships and requirements that go beyond the boundaries of their home country.
It is important they have a wealth planning solution that works domestically for them and to which they can commit long term if they need to move overseas, if one of the children chooses to study abroad or if they retire to a different country.
It gives peace of mind that, in the event of a move to another country, the solution will still work.
In addition to cross-border portability, wealth preservation is important. Families work hard gathering wealth, sometimes across multiple generations, and want to find solutions that allow them to protect their wealth in a legitimate, fully compliant way.
Following on from that is succession planning. High net-worth individuals often have specific needs they would like addressed in terms of who inherits their wealth. Insurance allows a high degree of flexibility to arrange for the transfer of wealth.
What is your distribution model?
We have never actively prospected end-clients and we don’t have a sales team trying to source individual clients. We always work through what we call distribution partners.
It is a broad spectrum but, in a nutshell, it includes IFAs, banks, independent asset managers, family offices, boutiques and wealth planners.
Our distribution channel complements how high net-worth families are using multiple advisers to organise their wealth. We need to be seen to be connected and plugged in to these organisations. That has been our distribution strategy.
Lombard is dual-headquartered. How does that work?
Since the end of 2014, we have been owned by Blackstone and have engaged in an ambitious expansion strategy. The first concrete element of this was the acquisition of Philadelphia Financial, which has an insurance carrier in the US and Bermuda. It has since been rebranded as Lombard International.
This has given us headquarters in both Luxembourg and Philadelphia.
We haven’t engaged in a full operational integration. Instead, we have looked at the synergies and cross-fertilisations we can provide on the back of having multiple booking centres and teams of experts. We can put our brains together and come up with innovative solutions.
This means we are not just a European or pan-European provider. Family wealth has globalised. The more global we are as a solutions provider, the better the fit with the ultimate end-client.
