Lloyd’s of London said former chief executive officer John Neal breached its compliance rules after failing to disclose a close relationship that could have been perceived as creating a potential conflict of interest.

An investigation found that Mr Neal failed to disclose the relationship with the group’s former corporate affairs director Rebekah Clement even after concerns were raised by colleagues, according to a statement.

The investigation conducted on behalf of the council responsible for the management and supervision of Lloyd’s also concluded that Mr Neal failed to ensure that whistle-blowing reports had been properly handled in line with his responsibilities as CEO.

The insurance marketplace said in November that it was investigating Mr Neal after becoming “aware of market speculation concerning possible historic breaches of policy”. The statement followed a Wall Street Journal report that alleged that Mr Neal had a relationship with an employee at the company before he resigned earlier this year.

Mr Neal had been set to start at American International Group before the company announced in November that it had reached a “mutual agreement” with its incoming president that he will no longer join the insurer because of “personal circumstances”.

The executive’s departure from Lloyd’s was announced in January 2025 when he agreed to take on a new role leading insurance broker Aon’s global reinsurance unit. AIG then swept in to offer him a deal to be its president and lead its property and casualty business.

“The council has concluded that Mr Neal’s failure to address these concerns, after they had been raised with him directly on more than one occasion, fell significantly below the standards of judgment, transparency and accountability expected of a Lloyd’s chief executive,” it said in the statement.

Still, the investigation found no conclusive evidence that Mr Neal and Ms Clement were engaged in a romantic relationship during their employment and said there was no proof of “process failures in respect of the promotion” of Ms Clement to the role of corporate affairs director.

“I am pleased, but not at all surprised, that the investigation found there was no inappropriate relationship,” Mr Neal said in a statement. “I am disappointed with the other findings and do not accept them but I’m glad that all parties are now able to move on.”

For their part, Ms Clement’s lawyers said in a statement that she is considering her legal options after an investigation that has “caused her unnecessary stress and significant reputational damage relative to its ‘findings’.”

“She is not surprised that Lloyd’s found no evidence of an inappropriate relationship with” Mr Neal or any “evidence of any failings in her promotion,” Shah Qureshi, a lawyer at Irwin Mitchell representing Ms Clement, said. “Yet, Lloyd’s has still chosen to find against Rebekah, on the pretext of ‘perception’, the source of which was rumour, gossip and innuendo.”

Mr Neal had previously served as CEO of Australian insurer QBE Insurance Group. That company’s board had cut his 2016 bonus by 20 per cent after it learnt Mr Neal had not disclosed a relationship with a subordinate, and he stepped down several months later. The news was reported by several publications at the time.

“We stand by everything in our statement and the extremely rigorous process that led to the findings detailed within it,” a spokesperson for Lloyd’s said via e-mail.

In 2018, Mr Neal was named the CEO of Lloyd’s of London as the company struggled to turn a profit after Brexit. While the insurance exchange, which was founded in the 1680s, returned to profitability under Mr Neal within a year, the firm was rattled by a 2019 Bloomberg Businessweek article exposing widespread sexual harassment at Lloyd’s.

The Businessweek report spurred Mr Neal to implement systemic changes to combat sexual harassment in the workplace, including lifetime bans, a whistleblower hotline and an independent survey of sexual-harassment claims.

“Trust, integrity and effective oversight are fundamental to Lloyd’s,” Lloyd’s chairman Sir Charles Roxburgh said. “Based on the findings of this investigation, we have concluded that the conduct of the former chief executive fell significantly below the standards expected of him. It also established serious failings in the governance standards and in following processes, most worryingly in the handling of whistle-blowing reports. These were serious failures that should never have been allowed to happen.”

Sir Charles, who became chairman in May 2025, announced a series of governance changes at Lloyd’s earlier this year. These include clarifying responsibilities between the group’s various decision making bodies and introducing a duty of candour for the executive.

Following the investigation, conducted by law firm Freshfields, Lloyd’s now plans to make additional changes including updates to its code of conduct. Almost 40 witnesses were interviewed as part of the investigation but Mr Neal and Ms Clement declined to answer questions on the nature of their relationship following their departure from Lloyd’s. Mr Neal also declined a request to provide access to his phone.

“An important part of developing a successful culture is learning when things go wrong,” said Christopher Croft, chief executive of the London & International Insurance Brokers’ Association. “Sir Charles has, through this investigation and his mitigating actions, ensured that Lloyd’s is better organised for the future.”

Sir Charles “has been unwavering in his commitment to follow the evidence of the investigation and on ensuring the highest standards of corporate governance are applied”, Lloyd’s Market Association CEO Sheila Cameron said. “Today’s statement outlines some additional changes that will be needed and that the Corporation of Lloyd’s is committed to implementing these promptly.”