Hastings Chairman Neil Utely will appear before a Lloyds of London disciplinary board later this month after an investigation into Equity Red Star, the underwriter he once ran.
The company has been under investigation by both the City regulator and Lloyds for more than a year because of concerns about the underwriters balance sheets.
According to reports in The Telegraph, Mr Utley will defend his position at Hastings at the meeting, after the company experienced heavy losses in previous years.
Equity Red Star experienced sever losses under Utely’s management which required Insurance Australia Group (AIG), the parent company, to set aside hundreds of millions of pounds.
In late 2010 the Financial Services Authority (FSA) ordered the company to appoint an independent body to conduct a review because of concerns about Equity Red Stars management.
According to The Telegraph John Josiah and Douglas Morgan, two senior Equity Red Star employees, are also required to face the Lloyds panel which could result in fines for the underwriter.
