The City regulator is considering whether to force Pearl Group, part of the £73 billion investment empire run by Hugh Osmond, the pizza-to-insurance entrepreneur, to reduce its debt at a time when concern is mounting about the financial stability of the insurance sector.
The Times has learnt that the Financial Services Authority (FSA) hired KPMG, the accountancy firm, last November to conduct an inquiry into Pearl, which took on a debt burden of at least £2.25 billion in the wake of its acquisition of Resolution, the closed life funds group previously owned by Clive Cowdery, the insurance entrepreneur. The FSA is considering the final report submitted by KPMG this month. It is also investigating Mr Cowdery and four other former directors of Resolution over its £5 billion sale to Pearl. The FSA, Pearl and KPMG all declined to comment last night. The FSA ...
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