GoshawK appointment applauded by analyst
Despite the collapse of its Lloyd’s parent last year and uncertainty over its future ownership, Bermudian based Rosemont Re can still attract talented underwriters, notes Shore Capital insurance analyst Eamonn Flanagan.
Last week Rosemont revealed it had recruited the former Converium Reinsurance North America underwriter Stephen Velotti to underwrite its US property portfolio. Flanagan observed that the appointment “suggests that the company, despite its market rating, is still able to attract decent underwriters. Velotti’s experience at Converium appears to have been centred in property, rather than in the liability accounts, which have caused the recent problems at Converium”.
Although the new management team – centred around ex-R&SA executive Paul Spencer as chairman and former ACE Tempest underwriter Russell Brooke as chief executive – are concentrating on rebuilding the company via Rosemont Re, GoshawK’s London Stock Exchange listed shares remain at a significant discount to the company’s book value.
House broker Numis Securities stoked bid speculation earlier this month by suggesting the company was an attractive bid target, while Flanagan observed last week: “We view the 23 percent discount to the forecast first half 2004 net tangible asset value as too large for a group which remains vulnerable to, and attractive for, a predator”