Northern Rock chairman given top job at insurer Pearl

Published on Thursday 24 September 2009 21:14

INSURER Pearl Group yesterday named Northern Rock chairman Ron Sandler as its chairman ahead of a planned £2 billion listing at the end of the year.

It is understood the City watchdog, the Financial Services Authority (FSA), has "dropped him in" following the troubled insurer's restructuring, which saw it sell a majority stake in the business to private equity group Liberty in June.

Pearl got into trouble after beating Standard Life to a 5bn takeover of Resolution from rival zombie insurance consolidator Clive Cowdery at the top of the market last year.

Sandler's appointment was announced at the same time as the group confirmed the FSA had lifted a so-called Oivop (own initiative variation of permission) order on Pearl, which forced the insurer to seek FSA approval to manage its funds. The order was placed after the Pearl had breached an Insurance Groups Directive solvency test last year.

The appointment marks a return to insurance for Sandler. A renowned City troubleshooter, he is credited with turning around the fortunes of Lloyd's of London, where he was chief executive from 1995 to 1999.

Sandler will chair Pearl Group part-time and will continue his role at the Rock. The government-owned Northern Rock said Sandler "remains fully committed to his role" at the bank.

Pearl founder Hugh Osmond, who made his fortune at Pizza Express and Punch Taverns, will become non-executive chairman of the group. He has maintained a 30 per cent stake in Pearl through his investment vehicle Sun Capital and the private equity group TDR Capital.

The group said Sandler will lead the group through further acquisitions.

Jonathan Moss, Pearl Group's chief executive said: "Ron's appointment further strengthens our leadership team. We have set out a clear strategic and operational plan to deliver value from our existing business and are well positioned to participate in further consolidation in the UK closed life fund sector."