Eagle Star has had poor results only in the United States.
This gave it a 90.8% stake and left Eagle Star with the remaining 9.2%.
Meacock is in dispute with Eagle Star over £1.7 million of reinsurance claims.
And Eagle Star has been badly hit for the same reason; their profits are down 170,000,000 to just 9,000,000.
In September, Eagle Star announced 1,000 jobs would be pared over the next three years.
Mr. Butt is the second senior manager to leave Eagle Star.
Eagle Star launched it strategy for the older market last April, with a range of special policies sold by a mature salesforce.
Eagle Star (0242 221311) has introduced a no claim discount of up to 20% for policyholders with three or more claim free years.
Eagle Star, one of Britain's major composite insurers, had a disastrous 1991 like the rest of the general insurance industry.
'I am confident that Eagle Star will use the windfall to build a sound and profitable future,' he said.