CORRECTED-PIB claims Howden used 'recruiting sergeants' in Acquinex poaching case

By Ryan Hewlett

April 28 - (The Insurer) - PIB Group and its MGA Acquinex claim Howden used "recruiting sergeants” who formed a WhatsApp group to orchestrate the hiring of its warranty and indemnity (W&I) insurance team in January this year, court documents show.

PIB is suing Howden in the UK High Court over the recruitment by Howden’s MGA unit Dual of Acquinex’s head of transactional risks Paul Smith, Northern Europe team leader Adam Love and their teams, in a case first reported by The Insurer in January.

In a 59-page court filing seen by The Insurer, PIB said 32 of its staff resigned over a five-hour period in London, Barcelona, Madrid, Lisbon, Rome, Amsterdam, Copenhagen, Stockholm and Frankfurt on January 10.

PIB, Acquinex and a number of subsidiaries have filed the lawsuit against Howden Group Holdings, Howden Group Services, Dual International and four individuals – Smith, Love, Dual Group CEO Richard Clapham and group founder David Howden.

Howden Group declined to comment on behalf of the defendants in the case. Defence submissions were filed by the named defendants in April.

PIB claims Howden and Dual secured a “significant unlawful springboard advantage” because before recruiting the Acquinex team, Dual did not have a significant W&I market presence, while Howden had a “substantial” broking market presence, with 43% of Acquinex's business referred to it by Howden entities.

The PIB claim seeks declaratory relief and damages and/or equitable compensation for unlawful means conspiracy, including breach of contract, knowing receipt and in the executives' case, breach of contract and fiduciary duty. It also asks for injunctive relief, including “springboard relief”, interest and costs.

PIB also claims that the alleged conduct amounts to a “modus operandi” by Howden, referencing the UK broking group's $70 million settlement with rival Guy Carpenter in 2023. This followed the defection of 38 Europe-based former Marsh McLennan employees and is the highest reported (re)insurance settlement for a team move.

PIB's claim says that Smith and Love were used by the Howden defendants to orchestrate the defections with the intention of bringing Acquinex's employees "in-house" and setting up a significant new competitor to Acquinex.

“The Howden Defendants calculated that the commercial benefits of their unlawful recruitment would outweigh any damages they may be ordered to pay by the Court and that they will thereby obtain part or all of Acquinex's business at an undervalue,” PIB said.

The claim against Smith and Love also relates to what PIB alleged was “misuse” of confidential information before their resignations and said that there was a "real and substantial risk" that the defendants would continue to take its business and opportunities without court relief.