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Peter Wood (businessman)

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Sir Peter John Wood CBE (born 6 November 1946, in Surrey) is an English entrepreneur, most notable as the founder of the Direct Line and esure insurance companies.[1] Wood was appointed Commander of the Order of the British Empire (CBE) in the 1996 New Year Honours for services to the insurance industry, and knighted in the 2016 Birthday Honours for services to UK industry and philanthropy.[2][3] In 2021 he was the 198th wealthiest person in Britain with an estimated personal fortune of £815 million, according to the Sunday Times Rich List 2021.[4][5][6]

Personal life

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Wood was born on 6 November 1946 in Kingston, Surrey. He was educated at Brooklands College in Weybridge. He is divorced and has five daughters.[7]

Career

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Direct Line

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In 1985 Wood launched Direct Line,[8] the first telephone-only insurance company in the UK.[9] The venture was underwritten by the Royal Bank of Scotland, and within nine years was the biggest insurer of private vehicles in the country,[10] claiming three times as many customers as the Royal Bank itself.[11] Wood did not have a capital stake in Direct Line,[5] having sold it to the Royal Bank in 1988 in return for considerable performance-related remuneration.[12] This led to his becoming Britain's highest paid company director, receiving £1.6 million in 1991, £6 million in 1992, and £18.2 million in 1993.[12] The subsequent attention and notoriety his pay attracted—Labour Party MP and then-shadow Trade Secretary Robin Cook called his bonus "obscene"[1][13]—was a source of embarrassment both to Wood himself and the Royal Bank, which attempted to buy its way out of its contractual obligations with a one-off £24 million payment in 1994, taking his total income that year to £42 million.[12][14] Wood himself claims that he personally requested an end to the deal after receiving a letter bomb at the Direct Line offices which injured a member of staff.[11] Nevertheless, Wood remained richly rewarded, receiving another £17 million in 1995 and remaining a byword for the perceived excesses of corporate boardrooms in the 1990s, according to critics.[14][15][16]

He left Direct Line in 1997,[5] but continued to work with the Royal Bank in other areas, including Privilege, an insurance company specialising in lower-risk customers which had been founded in 1996.[17] Whilst running Direct Line, Wood founded Línea Directa Aseguradora (LDA), a direct motor insurer in Spain, through a joint venture between RBS and Bankinter.[18] LDA listed on the Madrid stock exchange in April 2020 with a market valuation of €1.434bn euros.[19]

esure

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In 1999 Wood founded esure, this time in partnership with the Halifax bank,[20] which provided £150 million of startup capital.[21] esure used the same business model as Direct Line and targeted the same customer base, establishing a foothold in the market before following with a subsidiary (First Alternative) in 2003 for drivers of higher premium vehicles.[22][23] Even its advertising and marketing were similar, to the point where Direct Line challenged esure's "Mr Mouse" character to be an infringement of its own iconic red telephone on wheels, and it successfully took esure to court to prevent it being trademarked.[24][25] A women-only specialist insurance brand, Sheilas' Wheels, was established by Wood and esure in October 2005.[26]

In February 2010, Wood led a management buy-out of esure, subsequently leading the floatation of esure Group plc on the London Stock Exchange on 27 March 2013.[27] esure staff received a £3m payout at the time.[28] In August 2018, esure announced that it was to be acquired by Bain Capital for £1.2bn.[29] Wood remained as Chairman of esure until March 2020 when he stepped down from the Board.

GoCo Group

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Sir Peter Wood was also chairman of price comparison website Gocompare.com, following its demerger from esure Group plc in November 2016.[30] In November 2020, Future plc agreed a £594 million takeover of GoCo Group plc, which by this point had grown to include not just Gocompare.com but also Look After My Bills[31] and MyVoucherCodes.

Other

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Wood also set up two insurance companies in the United States, Response (1995) and Homesite (1997), although his involvement with both of them came to an end in 2004.[5] He is a Director and shareholder in American insurer The Plymouth Rock Company.[32]

From 1996 to 2000, Wood was a non-executive director of the holding company British Gas and the Automobile Association.[33] In 1998, he was appointed as a non-executive director to the Board of the Economist, where he serviced until March 2004.[34]

Wood is an established investor in property. Developments include the former headquarters of BBC Radio in Marylebone, London[35] and properties in Palm Beach, Florida.[36]

In 2021, Wood founded the investment vehicle, SPWOne.[37]

Philanthropy

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He was appointed a director of the Princess Royal Trust for Carers in 1994 and served for three years until he moved to found The Croydon Colorectal Cancer Charity with Mr Ian Swift, Consultant Surgeon at Mayday Hospital, Surrey.[38]

Wood is the biggest donor to prostate cancer research at UCL Hospital in London, where he has funded the latest radiology equipment and sponsors a leading professor.[39] Wood also funded equipment enabling UCL to conduct research in the immune response detectable from the blood of Covid-19 patients.[40]

References

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  1. ^ a b Stevenson, Rachel (30 June 2003). "Seventh heaven for the man who started Britain's telephone insurance revolution". The Independent. Archived from the original on 3 April 2009.
  2. ^ United Kingdom list: "No. 54255". The London Gazette (1st supplement). 30 December 1995. p. 10.
  3. ^ "No. 61608". The London Gazette (Supplement). 11 June 2016. p. B2.
  4. ^ "Rich List 2021". The Sunday Times. London. May 2021.
  5. ^ a b c d "Esure boss just won't calm down". The Times. London. 11 April 2004. Archived from the original on 17 May 2008.
  6. ^ Griffiths, Katherine (27 April 2002). "Peter Wood helps fund Cox cash call". The Independent.[dead link]
  7. ^ Finch, Julia (26 June 2003). "Cover model". The Guardian.
  8. ^ "Our Story". DLG Corporate Corporate Website. Retrieved 6 August 2021.
  9. ^ Parkinson, Gary (2 April 2000). "Wood poaches chiefs". The Daily Telegraph. London. Archived from the original on 16 September 2004. Retrieved 11 October 2021.
  10. ^ "About us: Milestones". Direct Line Insurance.
  11. ^ a b Darroch, Valerie (12 September 2001). "Wizard of odds". The Sunday Herald.
  12. ^ a b c Mabey, Christopher; Graeme Salaman; John Storey (1998). Human Resource Management. Oxford: Blackwell Publishing. p. 143. ISBN 0-631-21145-4.
  13. ^ Ringshaw, Grant (20 February 2000). "I'm coming out to play". The Daily Telegraph. London.[dead link]
  14. ^ a b "Royal Bank? It's trebles all round the board". The Guardian. London. 14 March 2001.
  15. ^ "Highest paid director gets 900 times more than his average employee". The Independent. 14 September 1995. [dead link]
  16. ^ Cox, Judy (Winter 1995). "Wealth, poverty and class in Britain today". International Socialism Journal (89). International Socialism. Archived from the original on 6 January 2009. Retrieved 6 November 2008.
  17. ^ "Succession at Direct Line Group". PR Newswire. 25 June 1997.
  18. ^ "Línea Directa: el experimento de la venta telefónica de seguros llama a la puerta del Ibex". El Español (in Spanish). 19 December 2019. Retrieved 6 August 2021.
  19. ^ "Spanish insurance company LDA jumps 30% on Madrid market debut". Nasdaq. 29 April 2021.
  20. ^ "About esure". Esure. Archived from the original on 16 October 2008.
  21. ^ "Halifax to offer online insurance". BBC. 17 February 2000.
  22. ^ Stevenson, Rachel (26 June 2003). "Peter Wood tackles higher risk cars market". The Independent.[dead link]
  23. ^ "The First Alternative for Higher Premium Motorists" (Press release). Esure. 22 October 2003.
  24. ^ Out-Law.com (5 July 2007). "Direct Line squashes esure's mouse on wheels". The Register.
  25. ^ Toulmin, Carolyn (23 July 2008). "esure Insurance Ltd v Direct Line Insurance plc (2008) EWCA Civ 842; (2008) WLR (D) 252". Archived from the original on 4 August 2008.
  26. ^ "Peter Wood and HBOS launch 'Sheilas' Wheels' brand to shake-up car insurance for women" (Press release). Sheilas' Wheels. 19 September 2005. Archived from the original on 7 January 2009.
  27. ^ "esure in £1bn London Stock Exchange Float". LSEG. Retrieved 6 August 2021.
  28. ^ "Esure staff to share £3m bonanza after insurance firm's flotation". the Guardian. 8 March 2013. Retrieved 6 August 2021.
  29. ^ "Important Disclaimer | esure Group plc". www.esuregroup.com. Retrieved 6 August 2021.
  30. ^ "Gocompare and insurer Esure to split". BBC News. 13 September 2016. Retrieved 6 August 2021.
  31. ^ "Go Compare buys Dragons' Den energy switching business". Energy Live News. 26 July 2019. Retrieved 6 August 2021.
  32. ^ "The Plymouth Rock Company 2020 Annual Report" (PDF). The Plymouth Rock Company. 8 February 2021.
  33. ^ "StackPath" (PDF). www.centrica.com. Retrieved 10 August 2021.
  34. ^ "Proposed demerger of Gocompare.com" (PDF). esure Group plc. 13 September 2016.
  35. ^ Avis-Riordan, Katie (7 August 2017). "This Marylebone sub-penthouse for sale is in the old BBC Radio London HQ". House Beautiful. Retrieved 9 August 2021.
  36. ^ Curry, Rhiannon (16 April 2017). "Sir Peter Wood on why he's ditched insurance in favour of property". The Telegraph. ISSN 0307-1235. Retrieved 9 August 2021.
  37. ^ "Sir Peter Wood backs open finance platform Moneyhub | Business Leader News". Business Leader. 16 July 2021. Retrieved 9 August 2021.
  38. ^ "QUEEN'S BIRTHDAY HONOURS 2016 – HIGH AWARDS" (PDF). Gov.uk. 10 June 2016.
  39. ^ UCL (16 July 2019). "UCL Cancer Institute receives £1.875m gift from Sir Peter Wood CBE". UCL Campaign. Retrieved 6 August 2021.
  40. ^ UCL (2 August 2020). "Increased Complement Receptor-3 levels in monocytes and granulocytes distinguish COVID-19 patients with pneumonia from those with mild symptoms" (PDF). UCL. Retrieved 2 August 2020.
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