Pearl gets Rock boss
Pearl Group, a closed life funds operator, has today confirmed that Ron Sandler, head of state-owned lender Northern Rock, has become its new chairman, boasting a strong capital position and targeting a stock market listing by the end of the year.
Mr. Sandler, a former chief executive of the Lloyd’s of London insurance market, was hired last year to help turn around Northern Rock which suffered at the hands of the financial crisis following problems in the credit markets. He will remain at the helm of the struggling bank but will uphold his new role at Pearl with immediate effect, where his proven track record in the life sector will enable him to become the public face of the group as it targets acquisitions.
Pearl was created by Hugh Osmond, the pubs-to-pizza entrepreneur, and quickly grew following several transforming deals which included the acquisition of National Provident Life and Scottish Mutual. However, the Pearl Group was left with a £3 million debt after paying £5 billion in December 2007 to buy Resolution – a rival company – run by Clive Cowdery, an insurance entrepreneur.
But, the business was rescued earlier this year after a £500 million capital injection from Liberty Acquisitions, which has been set up by US hedge funds, along with a life-saving debt-for-equity swap with its bank lenders.
Pearl is still carrying a debt of around £2.4 billion but stated that it has generated cashflows of more than £250 million in the six months to the end of June – which is more than enough to service its interest payments.
The company also clarified that the long-term underlying value of its policies – Pearl has 6.5 million customers – remains stable at £4.7 billion.
Source;
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