Does Inga Beale’s Promotion to CEO of Lloyds Mean the Insurance Business is Ready for More Women?

Young woman gesturing positive business perspective.By Irene Solaz

Now that, the UK’s most historical player in the insurance business, Lloyd’s of London, chose Inga Beale as a replacement for long-time chief executive Richard Ward can we expect to see other big insurance firms to follow suit with a female CEO?

Beale’s credentials are definitely solid, with 30 years of experience in the insurance industry, making her a great choice as the first female CEO of Lloyd’s, a company with 325 years of experience.

Insurance is a particularly interesting segment to examine, as even within financial services, it is perceived as being most flooded with straight, white guys. This perception was solidified thanks to a live poll conducted during the June 2013 Insurance Industry Charitable Foundation (IICF) Global Women in Insurance Conference. Ninety-eight percent of male and female respondents said that gender inequality still exists in the insurance industry and nearly half said the lack of C-Suite recognition and sponsorship is the top issue that must be confronted to elevate this statistic. More than 30 percent said their company does nothing to source more female talent.

Have Things Really Changed?
A 2012 study by Saint Joseph’s University Academy of Risk Management and Insurance concluded that only 6 percent of top executive positions were held by women. However, these numbers do not entirely reflect the experiences of women in the insurance industry who have achieved success in their firms. This industry can be ideal for women. Insurance dominated the 2012 version of the National Association for Female Executives’ (NAFE) ranking of the Top 50 Companies for Executive Women.

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On the Way Up the Corporate Ladder, Carry Your “Pearls” Advises Morgan Stanley’s Carla Harris

womanladder.JPGBy Michele Drayton

This past April 2014, the National Association of Women Business Owners (NAWBO) Chicago Chapter held its 31st Annual Celebration of Achievement Luncheon in Chicago, marking the 35th anniversary of the chapter’s founding and showcasing the accomplishments of corporate executives and entrepreneurs.

Keynote speaker Carla A. Harris recounted how when she came to Wall Street in 1987, she felt that she had the smarts and work ethic that appeared to guarantee success. Realizing quickly that this would take her only so far, she reached for her “pearls,” or career strategies that propelled her to success. She shared them before a rapt audience of nearly 500 women and men at the event.

Leading in Turbulent Times
“If you consider yourself a leader in the 21st century, you must be comfortable taking risks,” said Harris, commanding the center of the stage as she discussed one of her pearls. “In the environment we’ve had for the last six years everyone else may be ducking, but you have to have clear vision to see opportunity. Now is not the time to keep your head down. When you submerge your voice you become irrelevant.”

The women who are fearless as turmoil ensues – Harris cited GM CEO Mary Barra, Xerox Chairman and CEO Ursula Burns and HP President and CEO Meg Whitman – reinforce the fact that uncertain circumstances can produce uncommon victories.

Even amid the economic doldrums reflected in a 6.7 percent unemployment rate, Harris urged women to take the lead on a new project or recommend a process improvement. Those actions demonstrate relevance, and colleagues and stakeholders will take notice and say: “She’s trying to put points on the board. She’s moving the ball down the field. She is a keeper,” Harris said.

Crafting Your Personal Brand
A Wall Street veteran for nearly 27 years, Harris is Vice Chairman of Wealth Management, Senior Client Advisor and Managing Director at Morgan Stanley in New York. She is the author of the book, Expect to Win, her playbook for workplace success.

One insight Harris learned early involves understanding the importance of workplace perception. For example, a woman aiming for a P&L role will not get tapped for that position unless colleagues see her as quantitative, analytical and strategic. Harris advised audience members to select three words they want colleagues to use to describe them when they are not in the room, where decisions are made about hiring, promotion and compensation.

Recounting her own experience, Harris remembered a senior colleague telling her she wasn’t “tough” enough for investment banking. Instead of rebuffing the colleague, Harris, who earned two degrees from Harvard, changed her modus operandi. For the ensuing 90 days, she told the audience, she walked tough, talked tough and used the adjective to describe herself in conversation. Soon, she heard colleagues take into account how “tough” she was as they prepped for meetings with her.

“You can train people in the way you want them to think about you,” said Harris, recently installed as Chair of the National Women’s Business Council.

Know Yourself
Harris also recommended that audience members be authentic on the job because in relationship-driven business it opens up the opportunity to connect with a client on a different level. She related her experience. Before making a formal pitch for Burger King’s $300 million IPO, she asked the client whether the company planned to bring back both verses of the “Have It Your Way” jingle. The client insisted the jingle had only one verse until Harris sang both. Morgan Stanley got the account and Harris maintained a working relationship with the client.

This pearl? “Nobody can be you the way that you can be you,” said Harris, who has produced gospel CDs and sung at Carnegie Hall. “It is your distinct competitive advantage.” Most people aren’t comfortable in their own skin and they will gravitate toward people who are, she added.

Harris brought her message full circle with her most important pearl, what some might call faith. Women should accept that the answers to the most daunting workplace challenges are within their reach by way of their intelligence, their professional experience and their network. “If you expect to win, you will,’’ Harris said, as audience members at the sold-out event stood to applaud.

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Voice of Experience: Jennifer Taglia, Senior Vice President, Head of RFP, Voya Investment Management, formerly ING U.S. Investment Management

jennifer anglia“My career journey is certainly not linear,” said Jennifer Taglia, “but it has taken me to a place where I am enjoying what I am doing and I am learning something new all of the time.”
Taglia advises young professionals to seek similar professional fulfillment by taking responsibility for their own career path. “Don’t sit back and wait for things to happen to you,” said Taglia, “instead, be proactive, take initiative and create opportunities for your own career advancement.”

Career Story

Taglia started her career in operations on the sell side of UBS Investment Bank recruited right out of school. Here, she was exposed to foreign exchange, interest rates, precious metals, and derivatives in support of institutional business. After three years at UBS, Taglia decided that she wanted to gain more exposure to the rest of the business.

This desire to learn and grow prompted her move to the buy side at GE Asset Management, where she managed the equity operations team and later joined the Lean Six Sigma Quality Team. Taglia spent about six years in this cross business six sigma project management role and was exposed to many different processes across multiple sections of the business.

During this time, Taglia earned her Master Black Belt in Lean Six Sigma and went on to become a project manager in a product and marketing role. After relocating to Phoenix, AZ for a brief time, Taglia returned to the New York City area where she was offered a position at ING U.S. She came to ING U.S. as a project manager supporting the client business, and stayed in this role for about two years before an opportunity presented itself that would simultaneously challenge her and elevate her career to a new level.

“When the head of the RFP team resigned, I was put in charge of keeping the team running smoothly while they searched for a replacement,” explained Taglia, who spent a couple of months in this interim role. “It became clear to me that my experience, knowledge and ability to do a deep dive on processes could be an asset here, but that I also had the opportunity to learn and grow.”

She continued, “I was not an expert on everything that the role demanded, but I was confident in my ability to improve the process and improve the team.” This confidence helped Taglia transition permanently into the Head of RFP role where she has been for nearly three years.

The lengthy and complex process of rebranding ING U.S. Investment Management to Voya Investment Management was completed on May 1 and Jennifer and her team played a large part. “It is definitely a rare opportunity to be part of a complete rebranding, “Taglia explained, “and it has been very exciting to be involved in this change and to ensure that the process went smoothly.”

“Being successful in this role is something I am very proud of,” Taglia noted, “because it combines all of my strengths and past experiences while enabling me to take my career in a new and rewarding direction.”

On Thriving Professionally

According to Taglia, one of the most important components of her personal success has been maintaining a healthy work-life balance. “Having support at work and at home is a key factor for me,” said Taglia, who is married with two children.

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Summer Publishing Holiday

We are enjoying our annual publishing summer break, working hard behind the scenes to bring you useful and insightful career news and advice and great networking events for the rest of the summer, fall, and beyond.

We will be back on Monday the 14th with more profiles and articles and in the meantime, do enjoy a selection of our recent pieces.

  • Does Being LGBT Still Matter or Are We in a Post-Bias World at Work?
  • Sallie Krawcheck and Pax World Offer Women’s Global Equality Fund
  • The Glass Hammer’s 7th Annual Top Women on the Buy-Side Breakfast
  • The Imposter Syndrome: Why Owning Your Success is Critical to Your Career
  • How Being an Athlete Can Help Women Advance in Business

    • Are you a writer or an expert in the industry and would like to become a Glass Hammer writer? Contact jilliane@theglasshammer.com to discuss opportunities and learn more information about becoming part of the stellar TGH team!

    And don’t forget to check out our Facebook page, group, twitter page, and subscribe to our newsletter in the meantime!

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    Happy Independence Day!

    iStock_000001913448XSmallDear Readers,

    The Glass Hammer is celebrating this Fourth of July with a short publishing break. For our U.S. readers, we hope you are able to enjoy some down time as well. For the rest of our great readership, we will be back on Monday the 14th with more profiles, articles, and network events for you!

    In the mean time, here are some of our favorite articles in 2014:

  • Thought Leaders: Donna Parisi on the Derivatives Industry
  • Black Women in Business: An Update on Progress
  • Op-Ed: Why What Your Company Does The Other 364 Days of the Year Beyond International Women’s Day is What Matters
  • Asian-American Women and the Bamboo Ceiling
  • Dare to Compete: Leadership Lessons From Hillary Clinton

    • Are you a writer or an expert in the industry and would like to become a Glass Hammer writer? Contact jilliane@glasshammer2.wpengine.com to discuss opportunities and learn more information about becoming part of the stellar TGH team!

    And don’t forget to check out our Facebook page, group, twitter page, and subscribe to our newsletter in the meantime!

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    The Glass Hammer’s 7th Annual Top Women on the Buy-Side Breakfast

    women shaking handsThe main discussion at last week’s Top Women on the Buy-Side event for senior women in investment management focused on the evolution of the industry following the 2008 financial crisis and subsequent market recovery. But perhaps the strongest statements centered on the importance of networking for top-level women in the space.

    The sold out event – hosted in New York by The Glass Hammer – was the 7th annual networking breakfast and panel in the popular series and was moderated by Donna Parisi, partner and co-head of the asset management group at the law firm Shearman & Sterling. Panelists included Nanette Buziak, managing director and head of equity trading at Voya Investment Management; Daphne Karydas, senior equity analyst and co-portfolio manager at The Boston Company; Vivian Lau, partner at Serengeti Asset Management; and Susan Soh, partner and global head of marketing and client services at Perella Weinberg Partners.

    Challenges and Opportunities in 2014

    Donna Parisi opened the dialogue by commenting on the low yield environment and noting that just the day before the event the Fed announced that amid declining unemployment, it would keep short-term interest rates low for the time being.

    Liquidity was on the panelists’ minds, as well as market competition and when asked what challenges and opportunities lay ahead, the panelists eagerly began the discussion.

    “There’s still a lot that needs to be repaired in the US, but US equities look cheap on a valuation basis compared to other asset classes on a global basis” Buziak said. She continued, “There’s a lot of pressure on fees right now, and in equities, we’re seeing competition from ETFs and index funds.”

    Speaking from the alternatives perspective, Soh said, “While ETFs may pose a challenge for some, we believe it’s been an interesting opportunity because it’s created more demand for alternative products in the form of liquid alts, which is great for firms like ours.” Meanwhile, she continued, “In light of the low interest rate environment we’re seeing, hedge fund managers are finding it more difficult to generate the outsize returns that they have historically. There’s a greater focus on yield, current income and niche opportunities where one can generate outsized returns.”

    Karydas noted that, especially in a difficult environment, being creative is important. But she encouraged attendees to avoid what she called “style drift,” where some portfolio managers are pursuing new strategies to drive returns even though they might be outside the bounds of what clients initially signed up for.

    “You have to be true to what you say you are doing, especially in a bad year,” she said.

    Customers are demanding more transparency, Lau agreed. “Investors want to understand what they are paying for,” she said. Heightened regulations are part of this trend, but so is the desire for differentiation. “They want to know: are you delivering returns in a fashion I can’t get anywhere else?”

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    Sallie Krawcheck and Pax World Offer Women’s Global Equality Fund

    iStock_000003731985XSmallBy Beth Senko

    Women’s financial clout is growing and Sallie Krawcheck and Pax World are partnering to invest in the trend by investing in the very companies that are paving the way for women’s success.

    In June, Pax World Management LLC and Ellevate Asset Management LLC announced that they have entered into a partnership agreement to manage and distribute the first and only mutual fund in the United States that focuses on investing in companies that are global leaders in advancing women. The fund, Pax Ellevate Global Women’s Index Fund, is a successor fund to the Pax World Global Women’s Equality Fund.

    Krawcheck formed Ellevate Asset Management LLC (formerly 85 Broads) with impact investing and asset management executive Allyson McDonald. Ellevate Asset has an ownership investment in the new effort (Pax Ellevate Management LLC) and Krawcheck will sit on the board of trustees of the Fund.

    Pax World President and CEO Joe Keefe gave The Glass Hammer additional insight into the new fund, its strategy, and the opportunity for investors.

    The Glass Hammer: The Pax World Women’s Global Equality Fund was re-launched in 2010 with some changes. Is this an evolutionary step, or is this a new direction?

    Joe Keefe: The shareholders of the Pax World Global Women’s Equality Fund approved a merger into the Pax Ellevate Global Women’s Index Fund, which was formally launched on June 4. The major difference between the predecessor fund and the new fund is that the prior fund was actively managed (that is, a portfolio manager actively bought and sold stocks) whereas the re-launched fund follows an index-based strategy (that is, the fund buys and holds a fixed basket of stocks). We had long felt that an index-based strategy might be the best way to measure the contributions and capture the investment returns associated with gender diversity in business, but no such index existed. So, we built one. The Pax Global Women’s Leadership Index – a customized index calculated by MSCI – is comprised of the most highly-rated companies in the world in advancing women’s leadership on boards and in executive management, as rated by Pax World Gender Analytics. The Pax Ellevate Global Women’s Index Fund invests in the 400 plus companies comprising that index. So, in one sense this is an evolution and in another it’s a new departure. Certainly, we have built the first and only index comprised of, and launched the first and only mutual fund investing in, the most highly-rated companies in the world in advancing women’s leadership.

    TGH: The Pax Ellevate fund uses the term index, but is it seeking to perform relative to the index or actually replicate the index?

    JK: The fund actually follows what some call an enhanced index or smart beta strategy. The index is a market capitalization-weighted index. The fund invests in all 406 companies in the index but gives added weight to companies with higher gender diversity scores, so the company weightings in the fund are different than the weightings in the index. Research suggests that where women are better represented on boards and in executive management, companies often display stronger long-term financial performance. The Pax Ellevate Global Women’s Index Fund is premised on that research. Now, you will be able to make an apples-to-apples comparison between the market as a whole, on the one hand, and the best companies for advancing women, on the other. Now, if you agree that women should be better represented in corporate leadership, you have an opportunity to invest in those companies where they are indeed better represented. We hope, over time, to be able to demonstrate that these companies with greater gender diversity in leadership are actually better long-term investments.

    TGH: Standards for gender-positive practices vary by country and industry. Is the goal to pick only the best companies worldwide, or will the investments be examined relative to local/industry standards?

    JK: We do make some adjustments based on local/regional standards, although, with respect to industry and sector, we let the chips fall where they may and make no effort to remain industry- or sector-neutral vs. MSCI World or other global indices. Some regional or country differences are accounted for in the way we score for gender diversity. For example, women hold very few board seats in Japan but we wanted some Japanese representation in the fund, so the thresholds used for Japanese companies are somewhat different from, say, the threshold used for most European companies.

    TGH: Will there be a place in the fund to recognize companies that may not be best-in-class but are moving in that direction?

    JK: This fund is more about best practices than best intentions. Companies have to demonstrate a commitment to advancing women as evidenced by a number of criteria, including, most importantly, gender diversity on their board and in executive management. In some of our other funds at Pax World, although of which incorporate environmental, social, and governance (ESG) criteria into portfolio construction, we may give some weight to improving performance or aspirational factors. In the Pax Ellevate Global Women’s Index Fund, however, you have to be a leader to qualify for inclusion in the index and in the fund.

    TGH: Is this fund aimed primarily at individuals or do you see an institutional market for this product as well?

    JK: We think the fund should be attractive to both individual and institutional investors. Moreover, we don’t view this fund as simply a thematic fund or a niche product. This is a broadly diversified, global index-based strategy and we believe the fund can be considered as a core holding in many investor portfolios.
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    The rise of the female investor is a theme that has been in the news for a number of years. A study by Russell Investments notes that women control 51% of the private wealth in the U.S., or $8 trillion. That figure is expected to grow women’s wealth at $8 trillion, a number that is forecasted to grow to $22 trillion by 2020. More importantly, women are more likely to invest in companies that do well by doing good. U.S. Trust’s Women and Wealth series found that “65% of women think it is important to consider the positive or negative social, political, and/or environmental impact of the companies they invest in.” And for women, the study indicates that investing for women is not all about the money; “Women feel so strongly about the social impact of their investments, that two-thirds (56%), compared to 44% of men, would be willing to accept a lower return from investments in companies that have a greater positive social impact.” While a number of investment managers are capitalizing on untapped potential for women investors, creating a product designed to fit how women invest in Pax Ellevate is likely to set itself apart from the crowd.

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