John Charman
Encyclopedia
John R Charman is an English
business
man, who has made his career in insurance
. He is currently CEO/President/Director at Bermuda
based Axis Capital Holdings Ltd.
Nicknamed "King of the London Insurance Market", Charman was described as "famously strong-willed and opinionated" by the Financial Times
. Charman is ranked in the top 100 people in the global finance industry; inside the top ten richest people in the City of London
; and 321st overall in the 2004 Sunday Times Rich List
.
In August 2006 in what is believed to be the largest sum awarded to an English wife in a contested case, Charman was ordered to pay his ex-wife by the High Court of Justice
a sum of £48 million. It beat the £30 million awarded to WPP Group chief executive Martin Sorrell
's ex-wife in 2005 after their 32-year marriage ended in divorce.
, offering war risk insurance on a 24-hour basis. Charman was the Chief Executive Officer of Tarquin plc (a joint venture company among Insurance Partners, Harvard University
and the Charman Group), the parent company of the Charman Underwriting Agencies at Lloyd's of London
. He was also a deputy chairman of the Council of Lloyd's and a member of the Lloyd's Core Management Group and Lloyd's Market Board between 1995 and 1997.
Nicknamed "King of the London Insurance market", Charman earned the loathing of employees by banning entertainment of clients in company time, and refusing to indulge in long business lunches himself. One critic claimed Charman was so intimidating that colleagues "half-expect the theme from The Godfather
to greet him as he arrives at his office." In 2002 Axis settled out of court with a woman who claimed Charman barred her from a meeting, saying: "We are discussing something we decided when you were having babies."
Charman made more money when he sold Tarquin/Charman Underwriting Agencies for £350 million in 1998 to the Bermuda-based ACE International Group, receiving £70.6 million in ACE shares.
Charman was made Chief Executive Officer at ACE Global Markets (the merger of Charman Underwriting and assets of ACE), and in January 2001 was named group president and chief executive officer of Bermuda
based ACE International Group, but left the company in March 2001 due to personal differences. He was paid £3,597,241 in lieu of notice, and £500,000 in a one-off pension contribution.
Charman immediately set up Axis Capital, a Bermuda
-based reinsurance and insurance business with offices in London
, Dublin, Zurich
and New York
that is listed on the NYSE. The company aimed to cash in on the surge in insurance premiums after the September 11 terrorist attacks. In the financial year 2005 he was paid $7,741,762, and had stock options of $42,027,204 in Axis. Charman has informed the company that he will retire at the end of December 2008.
. When they married in 1976, neither had significant resources and the couple lived initially in her parents home, and then in his mothers home in Strood
near Rochester
, Kent
. The couple eventually moved to Sevenoaks
, where they bought a home now worth £2.75 million. The couple have two children: Nicholas (born 1981) and Michael (born 1986).
As Charman's wealth built, the couple created the Bermuda based Dragon Trust in 1987, which by 2006 had grown to a value of £65 million. The aim of the trust was according to Charman in his court papers agreed by the couple to preserve wealth for future generations.
After failing to secure a new house in England, in November 2003 Charman told his magistrate
wife that he was taking up permanent residence in Bermuda
and that their marriage was over. He has since set up home in a £2.1 million pound home in Bermuda, and has started a relationship with another woman.
Charman initially offered his ex-wife their home in Sevenoaks plus £6 million cash, but Mrs Charman, who was represented by Helen Ward
, of Manches, argued that the length of the marriage together with her substantial contributions did not justify such a significant departure from equality. Charman eventually offered his wife a package valued at £20 million. However, his wife still believed that the sum was not enough, and appealed the sum through the UK legal process, declaring the assets of the couple in her legal papers as:
Mrs Charman also declared that a separate £25 million trust catered for the needs of their sons, and so therefore Dragon Trust was an asset under the control of Charman.
On 2 August 2006, Mr Justice Coleridge decreed in the High Court of Justice
that a fair settlement would involve Charman giving his wife around 37 per cent of his assets. This would involve not only agreeing transfer of assets worth £8 million already under his wife's control, but also an additional one-off lump sum of £40 million. In his written judgement, Mr Justice Coleridge said: "The husband is genuinely bemused that the wife should regard his £20 million offer as anything other than reasonable, even generous. Her refusal to compromise on his terms has led him to deploy every available point to protect what he regards as his wealth generated entirely by his efforts. In the narrow, old-fashioned sense, that perspective is understandable, if somewhat anachronistic. Nowadays it must attract little sympathy."
Charman, said: "This judgement is poor and blatantly discriminatory. By any reasonable standards this is an extraordinary decision. I made a fair and open offer to my wife of £20 million, which would be impossible for any reasonable person to spend in their lifetime." Charman later commented that he would be launching an immediate appeal, calling the High Court award "grotesque and unfair."
In review, the amount was at 37% slightly less than the wife received in White v White, the House of Lords case in 2000. That case established the principal that for long marriages the courts should begin their deliberations on how to divide marital assets from the standpoint of a 50:50 split between husband and wife, regardless of who earned the money.
Charman began selling shares in Axis on the NYSE to meet the interim legal arrangements, prior to his appeal. If required to complete full payment, then it is calculated that he will need to sell of his shares in Axis.
Charman and his representatives, Withers, have mounted a high profile media campaign arguing that White and subsequent decisions are discriminatory towards wealthy husbands.Charman and his legal team have been widely quoted in the British press. On 9 March 2007, Mrs Charman was tied up and robbed of jewellery worth £300,000 at her home, in an incident police believe could have been motivated by the press coverage the case has attracted.http://www.guardian.co.uk/crime/article/0,,2031763,00.html
The Court reviewed the law as it stood at the end of May 2006 following the judgment of the House of Lords in the combined cases of Miller and McFarlane, interpreting and refining the guidance provided by the judgments in those cases.
The Court has provided important clarity in a number of areas connected with the distribution of assets on divorce, particularly in three aspects:
Significantly, the Court has also called for a far reaching review and reform of the law in this area in England and Wales.
Helen Ward
of Manches, who has represented Mrs Charman throughout these proceedings, said, "This is a significant judgment and brings welcome clarity to a number of important aspects of the law relating to the distribution of assets on divorce." (Times)
"The Solicitors profession will positively embrace the Court’s suggestion for a broad review and reform in this area to create modern law reflecting today’s modern society."
‘The breakdown of our marriage has been a painful experience for all concerned. Our divorce proceedings started nearly three years ago. It has been a difficult time, not just for me but for our family. I have been particularly concerned for our sons who have had to bear the discussion in public of our lives, our marriage and our divorce.
‘I am relieved that the appeal is over and I hope that John and I can now concentrate on building our new lives.’BBC
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
man, who has made his career in insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
. He is currently CEO/President/Director at Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
based Axis Capital Holdings Ltd.
Nicknamed "King of the London Insurance Market", Charman was described as "famously strong-willed and opinionated" by the Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
. Charman is ranked in the top 100 people in the global finance industry; inside the top ten richest people in the City of London
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
; and 321st overall in the 2004 Sunday Times Rich List
Sunday Times Rich List
The Sunday Times Rich List is a list of the 1,000 wealthiest people or families in the United Kingdom, updated annually in April and published as a magazine supplement by British national Sunday newspaper The Sunday Times since 1989...
.
In August 2006 in what is believed to be the largest sum awarded to an English wife in a contested case, Charman was ordered to pay his ex-wife by the High Court of Justice
High Court of Justice
The High Court of Justice is, together with the Court of Appeal and the Crown Court, one of the Senior Courts of England and Wales...
a sum of £48 million. It beat the £30 million awarded to WPP Group chief executive Martin Sorrell
Martin Sorrell
Sir Martin Sorrell is an English businessman and the chief executive officer of WPP Group. He has served in that role since he started the company.-Biography:...
's ex-wife in 2005 after their 32-year marriage ended in divorce.
Career
Charman made his fortune in the 1990s, during the 1991 Gulf WarGulf War
The Persian Gulf War , commonly referred to as simply the Gulf War, was a war waged by a U.N.-authorized coalition force from 34 nations led by the United States, against Iraq in response to Iraq's invasion and annexation of Kuwait.The war is also known under other names, such as the First Gulf...
, offering war risk insurance on a 24-hour basis. Charman was the Chief Executive Officer of Tarquin plc (a joint venture company among Insurance Partners, Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
and the Charman Group), the parent company of the Charman Underwriting Agencies at Lloyd's of London
Lloyd's of London
Lloyd's, also known as Lloyd's of London, is a British insurance and reinsurance market. It serves as a partially mutualised marketplace where multiple financial backers, underwriters, or members, whether individuals or corporations, come together to pool and spread risk...
. He was also a deputy chairman of the Council of Lloyd's and a member of the Lloyd's Core Management Group and Lloyd's Market Board between 1995 and 1997.
Nicknamed "King of the London Insurance market", Charman earned the loathing of employees by banning entertainment of clients in company time, and refusing to indulge in long business lunches himself. One critic claimed Charman was so intimidating that colleagues "half-expect the theme from The Godfather
The Godfather
The Godfather is a 1972 American epic crime film directed by Francis Ford Coppola, based on the 1969 novel by Mario Puzo. With a screenplay by Puzo, Coppola and an uncredited Robert Towne, the film stars Marlon Brando, Al Pacino, James Caan, Robert Duvall, Sterling Hayden, John Marley, Richard...
to greet him as he arrives at his office." In 2002 Axis settled out of court with a woman who claimed Charman barred her from a meeting, saying: "We are discussing something we decided when you were having babies."
Charman made more money when he sold Tarquin/Charman Underwriting Agencies for £350 million in 1998 to the Bermuda-based ACE International Group, receiving £70.6 million in ACE shares.
Charman was made Chief Executive Officer at ACE Global Markets (the merger of Charman Underwriting and assets of ACE), and in January 2001 was named group president and chief executive officer of Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
based ACE International Group, but left the company in March 2001 due to personal differences. He was paid £3,597,241 in lieu of notice, and £500,000 in a one-off pension contribution.
Charman immediately set up Axis Capital, a Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
-based reinsurance and insurance business with offices in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Dublin, Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
and New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
that is listed on the NYSE. The company aimed to cash in on the surge in insurance premiums after the September 11 terrorist attacks. In the financial year 2005 he was paid $7,741,762, and had stock options of $42,027,204 in Axis. Charman has informed the company that he will retire at the end of December 2008.
Divorce
Charman met his ex-wife Beverly in 1969 at schoolSchool
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...
. When they married in 1976, neither had significant resources and the couple lived initially in her parents home, and then in his mothers home in Strood
Strood
Strood is a town in the unitary authority of Medway in South East England. It is part of the ceremonial county of Kent. It lies on the north west bank of the River Medway at its lowest bridging point, and is part of the Rochester post town....
near Rochester
Rochester, New York
Rochester is a city in Monroe County, New York, south of Lake Ontario in the United States. Known as The World's Image Centre, it was also once known as The Flour City, and more recently as The Flower City...
, Kent
Kent
Kent is a county in southeast England, and is one of the home counties. It borders East Sussex, Surrey and Greater London and has a defined boundary with Essex in the middle of the Thames Estuary. The ceremonial county boundaries of Kent include the shire county of Kent and the unitary borough of...
. The couple eventually moved to Sevenoaks
Sevenoaks
Sevenoaks is a commuter town situated on the London fringe of west Kent, England, some 20 miles south-east of Charing Cross, on one of the principal commuter rail lines from the capital...
, where they bought a home now worth £2.75 million. The couple have two children: Nicholas (born 1981) and Michael (born 1986).
As Charman's wealth built, the couple created the Bermuda based Dragon Trust in 1987, which by 2006 had grown to a value of £65 million. The aim of the trust was according to Charman in his court papers agreed by the couple to preserve wealth for future generations.
After failing to secure a new house in England, in November 2003 Charman told his magistrate
Magistrate
A magistrate is an officer of the state; in modern usage the term usually refers to a judge or prosecutor. This was not always the case; in ancient Rome, a magistratus was one of the highest government officers and possessed both judicial and executive powers. Today, in common law systems, a...
wife that he was taking up permanent residence in Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
and that their marriage was over. He has since set up home in a £2.1 million pound home in Bermuda, and has started a relationship with another woman.
Charman initially offered his ex-wife their home in Sevenoaks plus £6 million cash, but Mrs Charman, who was represented by Helen Ward
Helen Ward (solicitor)
Lady Ward, a partner at Manches, is a London lawyer.Ward was born in Golders Green. Her mother was a painter and her father a successful businessman. Helen Gilbert, as she was, attended the fee-paying King Alfred school before studying law at Birmingham University...
, of Manches, argued that the length of the marriage together with her substantial contributions did not justify such a significant departure from equality. Charman eventually offered his wife a package valued at £20 million. However, his wife still believed that the sum was not enough, and appealed the sum through the UK legal process, declaring the assets of the couple in her legal papers as:
- £52.8 million in her husband's sole name
- £5.4 million in her sole name
- £2.1 million in their joint names
- £64.6 million in the Dragon Trust
Mrs Charman also declared that a separate £25 million trust catered for the needs of their sons, and so therefore Dragon Trust was an asset under the control of Charman.
On 2 August 2006, Mr Justice Coleridge decreed in the High Court of Justice
High Court of Justice
The High Court of Justice is, together with the Court of Appeal and the Crown Court, one of the Senior Courts of England and Wales...
that a fair settlement would involve Charman giving his wife around 37 per cent of his assets. This would involve not only agreeing transfer of assets worth £8 million already under his wife's control, but also an additional one-off lump sum of £40 million. In his written judgement, Mr Justice Coleridge said: "The husband is genuinely bemused that the wife should regard his £20 million offer as anything other than reasonable, even generous. Her refusal to compromise on his terms has led him to deploy every available point to protect what he regards as his wealth generated entirely by his efforts. In the narrow, old-fashioned sense, that perspective is understandable, if somewhat anachronistic. Nowadays it must attract little sympathy."
Charman, said: "This judgement is poor and blatantly discriminatory. By any reasonable standards this is an extraordinary decision. I made a fair and open offer to my wife of £20 million, which would be impossible for any reasonable person to spend in their lifetime." Charman later commented that he would be launching an immediate appeal, calling the High Court award "grotesque and unfair."
In review, the amount was at 37% slightly less than the wife received in White v White, the House of Lords case in 2000. That case established the principal that for long marriages the courts should begin their deliberations on how to divide marital assets from the standpoint of a 50:50 split between husband and wife, regardless of who earned the money.
Charman began selling shares in Axis on the NYSE to meet the interim legal arrangements, prior to his appeal. If required to complete full payment, then it is calculated that he will need to sell of his shares in Axis.
Charman and his representatives, Withers, have mounted a high profile media campaign arguing that White and subsequent decisions are discriminatory towards wealthy husbands.Charman and his legal team have been widely quoted in the British press. On 9 March 2007, Mrs Charman was tied up and robbed of jewellery worth £300,000 at her home, in an incident police believe could have been motivated by the press coverage the case has attracted.http://www.guardian.co.uk/crime/article/0,,2031763,00.html
Court of Appeal
In a judgment handed down on 24 May 2007, the Court of Appeal has dismissed John Charman’s appeal against the award of £48m made to his wife, Beverley. (Reuters)The Court reviewed the law as it stood at the end of May 2006 following the judgment of the House of Lords in the combined cases of Miller and McFarlane, interpreting and refining the guidance provided by the judgments in those cases.
The Court has provided important clarity in a number of areas connected with the distribution of assets on divorce, particularly in three aspects:
- The treatment of trust assets
- Guidance on the principles which apply when redistributing wealth between parties, particularly that property should be shared in equal proportions unless there is a good reason to depart from equality
- Guidance on the concept of a special contribution which either party can be found to have made to a marriage and how that should be quantified when redistributing assets on divorce
Significantly, the Court has also called for a far reaching review and reform of the law in this area in England and Wales.
Helen Ward
Helen Ward (solicitor)
Lady Ward, a partner at Manches, is a London lawyer.Ward was born in Golders Green. Her mother was a painter and her father a successful businessman. Helen Gilbert, as she was, attended the fee-paying King Alfred school before studying law at Birmingham University...
of Manches, who has represented Mrs Charman throughout these proceedings, said, "This is a significant judgment and brings welcome clarity to a number of important aspects of the law relating to the distribution of assets on divorce." (Times)
"The Solicitors profession will positively embrace the Court’s suggestion for a broad review and reform in this area to create modern law reflecting today’s modern society."
Statement from Beverley Charman in response to Court of Appeal Judgment
‘I acknowledge that the sum awarded to me is huge by any standards but the Court of Appeal has decided that it fairly reflects the contributions made by John and me during our twenty eight year marriage.‘The breakdown of our marriage has been a painful experience for all concerned. Our divorce proceedings started nearly three years ago. It has been a difficult time, not just for me but for our family. I have been particularly concerned for our sons who have had to bear the discussion in public of our lives, our marriage and our divorce.
‘I am relieved that the appeal is over and I hope that John and I can now concentrate on building our new lives.’BBC
External links
- Bio of John Charman at Forbes.comForbesForbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
- Guardian report on High Court settlement
- Daily Mail report on High Court settlement plus background information
- Bloomberg.com report on High Court settlement plus information on other significant UK divorce cases
- Legal Week report on Court of Appeal Judgment