Leadership Transition Ahead for LHV Group as Toomsalu Steeps Down
Leadership Transition at LHV Group
In a significant development, Madis Toomsalu, who has served as the Chairman of the Management Board of AS LHV Group, has expressed his intention to resign from his position by the fall of this year. This announcement comes as preparations are being made to appoint a new Chairman of the Board for the financial group.
A Journey Through Finance
Madis Toomsalu has been part of LHV since 2007, starting his journey as an intern. Over the years, he has progressed to becoming the first credit analyst in LHV Pank, later stepping into pivotal roles like Head of Credits and Chairman of the Credit Committee. His leadership capabilities led him to the position of Chairman of the Management Board of LHV Group in 2016. Alongside his primary role, he chairs the Supervisory Boards of AS LHV Pank, AS LHV Kindlustus, and AS LHV Varahaldus, while also maintaining a leadership role in LHV Bank Ltd.
Achievements Under His Leadership
Under Toomsalu's stewardship, LHV Group has seen tremendous growth, with the loan portfolio expanding tenfold to nearly EUR 5 billion. This period also witnessed the establishment of LHV Bank in England and the growth of LHV Kindlustus, enhancing the company’s footprint in the finance and insurance sectors. Today, LHV continues to be recognized as the best bank in Estonia, noted for being an attractive employer and for maintaining superior investor relations.
Future Leadership Considerations
The Nomination Committee at LHV has already initiated the search for a new CEO. With evolving responsibilities and future challenges on the horizon, it’s vital to redefine the roles within the group, particularly that of the CEO. The new appointment will need to receive approval from the Supervisory Board of LHV Group and the regulatory authorities for financial supervision.
Reflecting on His Legacy
During a recent statement, Rain Lõhmus, the Chairman of the Supervisory Board of LHV Group, expressed profound gratitude towards Madis Toomsalu for his exceptional contributions over the past 18 years. He emphasized that Toomsalu’s impact on the organization is deeply ingrained in LHV’s current success. Lõhmus wished Toomsalu the best in his future endeavors, wherever that may lead.
Embracing Change and Innovation
Toomsalu highlighted the dynamic nature of LHV, describing it as an organism that thrives on creativity and innovation rather than stringent controls. He pointed out the transformation in the role of the CEO, especially since 2016 when regulatory knowledge was at the forefront. Today, the challenge is to innovate within the existing regulatory framework. With his personal commitments and family considerations in mind, he has decided that it’s the right time to transition from operational leadership to a shareholder role, where he will continue to support LHV's development.
About LHV Group
LHV Group stands as the largest domestic financial entity and capital provider in Estonia, encompassing key subsidiaries such as LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. Committed to growth, the organization employs over 1,160 individuals. As of recent evaluations, LHV’s banking services cater to approximately 462,000 clients, while the managed pension funds boast 113,000 active clients, and LHV Kindlustus extends its protective services to 174,000 clients. LHV Bank, which holds a UK banking license, caters to international fintech firms and provides loans to small and medium-sized enterprises.
Priit Rum
Communications Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
Frequently Asked Questions
Who is Madis Toomsalu?
Madis Toomsalu is the Chairman of the Management Board of AS LHV Group, who has announced his intention to resign.
What role did Toomsalu play at LHV Group?
He played a crucial role in expanding LHV's loan portfolio and leading the group's initiatives since 2007.
What is LHV Group known for?
LHV Group is recognized as the largest financial group in Estonia and is known for its strong banking and insurance services.
What are the next steps for LHV Group after Toomsalu's resignation?
The Nomination Committee has started the search for a new CEO and will need to redefine roles within the company.
How has LHV Group been successful?
Under Toomsalu’s leadership, LHV Group has seen significant growth, being awarded as the best bank in Estonia and recognized for its investor relations.
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