Phoenix Asset Management, the majority shareholder of Goshawk Insurance, has said it has...
Phoenix Asset Management, the majority shareholder of Goshawk Insurance, has scrapped plans to try to replace the troubled insurer's board and change its strategy.
Phoenix has cancelled its call for an extraordinary general meeting seeking the appointment of its own directors Sir Peter Thompson and Gary Channon to the Goshawk board.
Following the insurer's interim results, the possibility of a credit rating downgrade by AM Best, which would remove Goshawk's main operating subsidiary Rosemont Re from its list of recommended reinsurers, and the unwillingness of management to cooperate, Phoenix said it will no longer be presenting any proposals to shareholders.
Phoenix said: "We will now focus our efforts on ensuring that Goshawk acts in the best interests of shareholders."
Goshawk said: "Goshawk is looking at capital-raising initiatives to allow maximisation of opportunities in the future hardening market, to secure its capital position and to reaffirm its rating."
