Jonathan Bloomer, who’s among the many lacking after a luxurious yacht sank off the coast of Sicily, capped a protracted profession as an accountant and insurance coverage govt with an uncommon star flip: defence witness in Mike Lynch’s San Francisco trial.
Lynch, who can be lacking after the yacht Bayesian foundered in unhealthy climate on Monday, was accused of fraud over the sale of his software program firm Autonomy to Hewlett-Packard for $11bn in 2011.
The 70-year-old Bloomer, who was named to Autonomy’s board as a non-executive in 2010, informed the courtroom in Could that Lynch “wasn’t notably within the finance facet” and most well-liked to deal with technique and merchandise. A day later, Lynch took the stand himself and in June he was acquitted.
Bloomer and his spouse, Judy, who can be lacking, have been among the many company invited to Lynch’s yacht to rejoice the victory.
Bloomer is greatest identified for his time on the helm of FTSE 100 insurer Prudential, which he joined as finance director from accountancy agency Arthur Andersen in 1995. Inside 5 years he had ascended to the highest job.
Aviva chair George Culmer, who was Prudential’s monetary controller, recalled a really good govt who was at all times “gracious, charming, affable and truthful”. “He at all times constructed superb groups,” mentioned Culmer. “Folks have been loyal to him. They might observe him.”
Bloomer’s time as Prudential chief govt was turbulent, coinciding with the dotcom crash and the 9/11 terrorist assaults in New York. Whereas he was credited with spearheading the group’s development in Asia and bringing down prices, shareholders have been dealt a variety of disappointments that finally led to his exit after 5 years within the job.
First got here an unsuccessful multibillion-pound effort to purchase US insurer American Basic and soak up it into the Pru’s US arm in 2002, which was closely criticised by shareholders and knocked the corporate’s share value.
Then, in 2003, Bloomer minimize the dividend for the primary time because the first world struggle to shore up the corporate’s depleted capital, regardless of repeated assurances the group deliberate to maintain elevating the payout.
After the launch of a shock £1bn rights subject in 2004 and regardless of earlier assist from Prudential chair David Clementi, he was ousted in a boardroom coup and changed by Mark Tucker in 2005.
“He was not a pure CEO,” mentioned one former colleague. “He wasn’t ruthless sufficient. He was too trusting.”
After his decade at Prudential, Bloomer joined non-public fairness agency Cerberus Capital Administration as European companion, the place he remained for six years till 2012.
Within the years that adopted his exit from the Pru, Bloomer had a plural profession, combining a clutch of non-executive roles that included the place as audit committee chair at Autonomy that might put him on the centre of a case by which it was alleged Lynch’s software program firm falsely inflated its revenues.
Bloomer informed the courtroom that he met Lynch at a convention within the early 2000s. Autonomy’s chairman, Robert Webb, approached him round 2010 on the lookout for a board director who “understood the town” and will “take into consideration the best way Autonomy was seen” there.
HP argued that Autonomy used lossmaking {hardware} gross sales to make up shortfalls in its quarterly revenues. Huge-ticket {hardware} gross sales would have been famous in Autonomy’s audit stories, which might have been reviewed by Bloomer as a part of his boardroom position.
Throughout his testimony at trial, Bloomer defined that a few of the accounting later flagged as suspicious by US prosecutors was acceptable underneath UK guidelines.
Associates described Bloomer as a person of humble background who discovered it straightforward to attach with colleagues and encourage loyalty, whereas additionally sustaining a sure distance.
“He didn’t like hierarchy or standing,” mentioned one senior insurance coverage govt. “However he additionally favored to decorate effectively in good fits and he loved the finer issues in life.”
A physics graduate of Imperial School London, Bloomer based a pension buyout enterprise, Lucida, backed by Cerberus, which was offered to Authorized & Basic in 2013.
The crusing and rugby fanatic additionally served on the boards of a number of monetary companies firms, together with authorized companies firm DWF Group and Arrow International, a European funding agency.
Sir Nicholas Lyons, the previous Lord Mayor who championed the Mansion Home Compact to advertise extra productive funding, mentioned Bloomer had been a eager advocate of the initiative.
“He was very supportive of the agenda and of getting monetary companies again into the highlight of the economic system,” Lyons mentioned.
Bloomer’s highest-profile current roles have been at Morgan Stanley Worldwide, the UK-based arm of the Wall Avenue financial institution, the place he has chaired the board since 2018, and London-listed insurer Hiscox, the place he has served as non-executive chair since final yr.
“We’re deeply shocked and saddened by this tragedy. Our ideas are with all these affected, specifically the Bloomer household, as all of us await additional information from this horrible scenario,” a Morgan Stanley spokesperson mentioned.
Hiscox’s chief govt Aki Hussain mentioned the corporate was “deeply shocked and saddened by this tragic occasion”.
Further reporting by Patrick Jenkins and Michael Acton
