Lloyd’s has responded to questions about former CEO John Neal by revealing a review last month found “internal processes had not been fully adhered to in respect of a prior matter” and a further investigation is under way.

Mr Neal, who left Lloyd’s in June, was due to become AIG president next month, but the insurer said that by mutual agreement he would no longer join “due to personal circumstances”.

The Wall Street Journal reported AIG pulled the appointment after discovering Mr Neal’s previous employer had launched an investigation into an alleged workplace relationship.

Lloyd’s said in a statement that chairman Charles Roxburgh initiated a review of the market’s council governance structure earlier this year, while separately becoming aware of speculation concerning possible historic breaches of policy.

“In October, he commissioned an independent fact-finding review to ensure the corporation’s processes were robust and fully aligned with regulatory expectations,” the statement said.

“That work identified that our internal processes had not been fully adhered to in respect of a prior matter. In recent days, new information has emerged. In response, Lloyd’s has launched an investigation with the support of a law firm.”

The Financial Times reported the investigation followed concerns over whether a competitive executive committee appointment process was undertaken for a woman with whom Mr Neal had a close personal relationship.

Mr Neal became Lloyd’s CEO in October 2018 and drove a turnaround in its performance. He was expected to join Aon after leaving but it was later announced he would join AIG.

He previously led QBE in Sydney. The insurer’s 2016 remuneration report said Mr Neal’s performance was well regarded but his short-term incentive bonus had been cut 20% as some “recent personal decisions” were inconsistent with board expectations.

The Sydney Morning Herald said he told journalists he had not been timely in disclosing a personal relationship to the board. The relationship with the executive assistant required disclosure under the code of conduct, the newspaper said.

London Markets Association CEO Sheila Cameron says the group looks forward to the Lloyd’s investigation findings being made public and action taken.

“Under the new Lloyd’s leadership, there has been a refreshing commitment to behavioural change and openness,” she said. “We call on Lloyd’s to accelerate their commitment to this change.”   

Ms Cameron says the market comprises many people who exhibit exemplary values, and they will be appalled at the possibility of being tarnished by alleged poor behaviour from a small minority of people previously at the top of Lloyd’s.